Sales Tax-Calculation using the Entity Use Codes

To manage the Customer’s Sales Tax and the exempt status, added the “Entity Use Code” field in the Customer and Upload  Customer Module.

What are Entity Use Code values? 

Entity/Use Code is a value that can be passed at the document or line level of a tax request and identifies the Customer within a group. Frequently, it is used to mark a Customer as fully or partially, tax-exempt.

To that end, there are pre-populated Customer taxability profiles present in the AvaTax system with rules for the United States and Canada:

  1. The federal government (United States)           A
  2. State government (United States)                      B
  3. Tribe / Status Indian / Indian Band (both)        C
  4. Foreign diplomat (both)                                       D
  5. Charitable or benevolent org (both)                  E
  6. Religious or educational org (both)                    F
  7. Resale (both)                                                          G
  8. Commercial agricultural production (both)      H
  9. Industrial production / manufacturer (both)    I
  10. Direct pay permit (United States)                        J
  11. Direct mail (United States)                                   K
  12. Other/custom (both)                                             L
  13. Educational organization                                    M
  14. Local government (United States)                     N
  15. Commercial aquaculture (Canada)                    P
  16. Commercial Fishery (Canada)                            Q
  17. Non-resident (Canada)                                        R
  18. Taxable                                                                   S

How does it work?

Added a new field “Entity Use Code” in the Customer module. 

  • The Customers can be set as Tax exempted or Taxable by defining the “Entity Use Code” under the Sales Tax tab of the Customer module.

  • The “Entity Use Code” column can be viewed in the Customer Centre.

  • The new field is also added in the Batch Upload Customer file.

Note: Only use the single-letter code (mentioned above) as the Entity Use Code to trigger a Customer as fully or partially, tax-exempt. It will give an error in case of an invalid Code.

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