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Tax Exemption Groups

Tax Exemption Groups allow you to specify the tax exemption details for the billing account(s) you want to associate them with. Once you create a group and add tax exemption details to it, you can then assign it to a billing account to ensure that is exempted from either federal or state taxes.

How Do I Access Tax Exemption Groups?

The Tax Management page enables you to create, edit, activate, manage, or suspend Exemption groups. To access the Exemption Management page, click the app launcher icon (app launcher) and select the Tax Management app.

Creating an Exemption Group

To create an Exemption group, do the following:

  1. From the Exemption Management Action menu, click Create Exemption Group.

  1. In the Create Exemption Group window that opens, enter the Exemption Group information for the group you are creating.

Federal Federal tax exemption level.
State State tax exemption level.
  1. Click Submit to save your changes.

Managing Tax Exemptions

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

To specify tax exemption details in the Manage Exemptions window, do the following:

  1. Open the Tax Exemption group you want to manage.
  2. From the Exemption Group Action menu, click Manage Exemptions.

  1. In the Manage Exemptions window that appears, the default view will be to display a listing of ALL Avalara Communication Tax Categories and Avalara Communication Tax Types to pick and choose from. The full listing will be organized in a parent-child hierarchy, with each parent Avalara Tax Category listed first followed by its respective child Avalara Tax Types. A ‘By Category’ filter option is available in the left panel to filter the view by specific categories selected. From this view, select the exemptions that you want to apply to your Exemption group by selecting the applicable checkboxes.

Note: The Avalara Communications Tax categories are organized in a parent-child relationship, therefore, when you select a checkbox for a parent category, the child categories that are associated with the parent will be disabled for selection, indicating that they have automatically been selected along with the parent category. Alternatively, when the parent category is not selected, the child Tax Types can be selected individually.

The following example shows the Manage Exemptions window with a parent category selected along with the child categories that are associated with the parent.

The following example shows the Manage Exemptions window with individually selected child Tax Types.

  1. Click Submit to save your exemption selections.

Viewing Exemption Categories

Once you have added your exemptions to the exemption group, you can view individual exemptions or exemption categories by performing the following steps.

  1. From the Exemption Management page, click the information icon for an exemption that is shown as a Category Exemption in the Level column. The associated exemption details appear.

Editing Exemptions and Exemption Categories

Follow these steps to edit exemptions and exemption categories.

  1. Navigate to the Tax Management page by clicking the app launcher icon (app launcher) and selecting the Tax Management app.
  2. Click the row for the Exemption group you want to edit.

  1. From the Exemption Group Action menu, click Manage Exemptions.

  1. Update your exemption settings in the Manage Exemptions window as needed.

  1. Click Submit to save your changes.

Deleting Exemption Categories

Once you have added your exemptions to the exemption group, you can delete individual exemptions or exemption categories by performing the following steps.

  1. From the Exemption Management page, click the ellipsis for an exemption that is shown as a Category Exemption in the Level column.
  2. Select Delete to delete the category and all of the associated exemptions.

Deleting an Exemption from an Exemptax-exemption-assigningtion Group

If you want to delete one or more specific exemptions from an Exemption group instead of deleting the entire group, you can do that from the Exemption Management page. To delete a specific exemption from an Exemption group, do the following:

  1. Navigate to the Exemption group that you want to modify.
  2. Click the ellipsis under the Actions column for the exemption you want to delete, and then click Delete.

  1. Click Yes in the confirmation window that appears.

Activating a Group

You must activate a group in order to be able to assign it to an account. To activate an exemption group, do the following:

Note: Once you activate an Exemption Group, you will not be able to delete it. You will only be able to edit or suspend it.

  1. From the Exemption Group Action menu, click Activate Group.

  1. Click Yes in the confirmation window that appears.

Once you select the Activate Group option, the group is active and you can assign it to an account.

Editing an Exemption Group

To edit an exemption group, do the following:

  1. From the Exemption Group Action menu, click Edit Group.

  1. Make any necessary changes to the Edit Exemption Group window.

  1. Click Submit to save your changes.

Suspending an Exemption Group

Once you have activated a Tax Exemption group, you can suspend it if necessary, however you cannot delete it. To suspend an exemption group, do the following:

  1. From the Exemption Group Action menu, click Suspend Group.

  1. Click Yes in the confirmation window that appears.

Deleting an Exemption Group

You can only delete an Exemption group that hasn't been activated yet. To delete an Exemption group, do the following:

  1. From the Exemption Group Action menu, click Delete Group.

  1. Click Yes in the confirmation window that appears.

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