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:
- The federal government (United States) A
- State government (United States) B
- Tribe / Status Indian / Indian Band (both) C
- Foreign diplomat (both) D
- Charitable or benevolent org (both) E
- Religious or educational org (both) F
- Resale (both) G
- Commercial agricultural production (both) H
- Industrial production / manufacturer (both) I
- Direct pay permit (United States) J
- Direct mail (United States) K
- Other/custom (both) L
- Educational organization M
- Local government (United States) N
- Commercial aquaculture (Canada) P
- Commercial Fishery (Canada) Q
- Non-resident (Canada) R
- 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.