Customer exemption and product tax types in Avalara

If you deal with customers that are fully or partially tax exempt, or if you sell products with a special tax status, this must be configured within Brightpearl and the Avalara connector.

Customers with exemption status

AvaTax uses entity/use codes to identify a customer's tax status. These codes indicate pre-populated customer taxability profiles present in the AvaTax system. 

As such, if you deal with customers who are fully or partially tax exempt then you must create a custom field in Brightpearl to store this data.

  1. Navigate to Settings > Custom field > Customers
  2. Add a new 'freeform text' custom field for Avalara customer exemption status (the field name, code and tab is your choice)

mceclip0.png

Then, populate this custom field against a customer record to identify the contact's tax exemption status - or leave it blank where there is no exemption. For example, enter 'E' for charitable organizations. A full list of AvaTax's entity/use codes can be found here.

mceclip4.png

Products with a special tax status

If you sell products with a special tax status then you must create a custom field in Brightpearl to store this data.

  1. Navigate to Settings > Custom field > Products
  2. Add a new 'freeform text' custom field for Avalara product tax type (the field name, code and tab is your choice)

mceclip1.png

Then, populate this custom field against a product record to identify the product's tax status - or leave it blank if it has no special status. A full list of AvaTax's tax codes can be found here.

Connector settings

You then need to map these new custom fields in the connector settings so the integration is aware of which data to send to Avalara during tax calculation and when reporting invoices.

  1. Navigate to the Avalara App's Connector Settings through the App Store
  2. Update the 'Field to use for Avalara product tax type' value to your new custom field
  3. Update the 'Field to use for Avalara customer exemption code' value to your new custom field
  4. Save the settings

 mceclip2.png

Next read about setting up tax rules for shipping and miscellaneous order rows

Have more questions? Submit a request