It is possible for a customer account to be tax exempt. If you set Tax Exempt to Yes, you must enter a certificate ID or an entity/use code. Specifying either Pending Verification or No are equivalent, and will apply taxes for this account.
For more information about tax exemption certificates, refer to the following documentation from Zuora partner Avalara: Exemption Certificate Survival Guide.
For more information about entity/use codes, refer to the following documentation from Zuora partner Avalara: Exempt Transactions.
Setting tax exempt status
To enable tax exempt status for an account, edit the account and enter information in the Tax Exempt fields of the Billing and Payment Info section.
Set this to
If you set this to
|Certificate ID||See description||Any value provided by the merchant.|
|Certificate Type||No||Typically, this is
|Issuing Jurisdiction||No||Typically, this is a state or government agency.|
|Entity/Use Code||No||Specify an entity/use code used to apply exemptions in AvaTax.|
|Description||No||Add a description. This field is optional.|