In this topic:
Welcome to the TRACT Tax Management app.
The Tax Management app enables you to create and manage Exemption groups in order to easily organize and ensure that their associated billing accounts are exempted from either federal or state taxes. Once you configure an Exemption group, you can assign it to a Billing Account, which essentially defines a customer's tax exemption status.
Note: The Tax Management app requires integration with the Avalara Communication Tax Calculation Software. For more information, contact your goTransverse account manager.
You can set up and manage Tax Exemption information in the following ways:
Exemption Groups: Create, edit, activate or suspend Exemption groups.
Exemption Management: Once the Exemption groups are created, you can associate the appropriate Exemption Details to an Exemption group by choosing from a listing of Avalara Communication Tax Categories and Avalara Communication Tax Types through the "Manage Exemptions" action.
A few notes on tax exemption details:
- The selection of Avalara Communication Tax Categories are considered Category Level Tax Exemptions
- Avalara Tax Categories are parents of Avalara Tax Types
- Each Avalara Tax Category will contain many child Avalara Tax Types
- The selection of Avalara Communication Tax Types are considered Specific Level Tax Exemptions
- Avalara Tax Types are children of Avalara Tax Categories
- Each Avalara Tax Type will only have one parent Avalara Tax Category
Account Management: Once you have created the Exemption group and have specified the exemption details, you can associate them with a billing account. If the tax level of the associated Exemption Group is at a "State" tax level you can specify the states in which the billing account is exempt from.
Tax Matching Rules
Tax category matching operates through eight separate queries and their respective rules. These matching rules are:
Match on (tax code + tax jurisdiction name + tax jurisdiction type)
Match on (tax code + tax jurisdiction name)
Match on (tax code + tax jurisdiction type)
Match on (tax code)
Match on (tax jurisdiction name + tax jurisdiction type)
Match on (tax jurisdiction name)
Match on (tax jurisdiction type)
Match on default category
Note: Performance may be impacted if making seven or more queries.Top