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Tax Exemption Groups

Tax Exemption Groups allow you to specify the tax exemption details for the needed billing account. Once you create a group and add tax exemption details to it, you can assign it to a billing account to ensure that it is exempted from either federal or state taxes.

Managing Tax Exemption Groups

To start using the Tax Exemptions functionality, you have to create a Tax Exemption group. Also, you can edit the desired groups and suspend ones that you no longer need.

Creating Tax Exemption Groups

To create a new Tax Exemption group:

  1. From the application launcher menu in TRACT , click Tax Management.
  2. From the Exemption Management action menu, click Create Exemption Group.

  3. In the Create Exemption Group window that opens, fill in the following fields:
    • Exemption Group Name (required): enter the desired name for your Tax Exemption group.
    • Tax Level (required): select the Federal or State tax level.
    • Note: If you select the State tax level, when assigning to the billing account, you can configure which states should be included.

    • Description: enter additional information about your Tax Exemption group.

  4. Click Submit to save your changes.

Adding Tax Exemption Details

After creating a Tax Exemption group, the next step is to associate the tax exemption details (Avalara Communication Tax categories and tax types) with the Tax Exemption group.

Also, you can also view the details of the Tax Exemption group, and delete items that you no longer need.

To add Tax Exemption details to the group:

  1. On the Exemption Management page, click the name of the needed Tax Exemption group from the list.
  2. In the Tax Exemption Group action menu, click Manage Exemptions.
  3. In the Manage Exemptions window that opens, select the needed Category Exemption or Specific Exemptions.
    • Category Exemption (Avalara Communication Tax Category)—parent entity which is a container of Specific Exemptions. When you select a certain Category Exemption, all related Specific Exemptions are selected automatically. Alternatively, when the parent category is not selected, the child Tax Types can be selected individually.
    • Specific Exemptions (Avalara Tax Types)—a child entity which includes tax exemption details.

    Note: To filter tax exemptions, use the By Category box on the left.

  4. Click Sumbit to save your changes.

Activating Tax Exemption Groups

Once you have added all needed Tax Exemption details, proceed with activating your group and assigning it to the billing account.

Note: You cannot assign a Tax Exemption group that is in the Draft status to the billing account.

To activate the Tax Exemption Group:

  1. In the Exemption Group action menu, click Activate Group
  2. In the Confirmation window that opens, click Yes.

Now, you can proceed with assigning your Tax Exemption Group to the billing account.

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