# Entity use code scenario

Source: https://developer.avalara.com/avatax-dm-combined-erp/sales-tax-badge/transactions/test-entity-use-code/

# Entity use code scenario

This scenario, we’ll look to see if the`EntityUseCode` was passed to us in the transaction and confirm that the tax amount is zero due to the exemption in both our platform and yours. This scenario assumes the following:

-   The`shipFrom` address is anywhere in the US.
-   The`shipTo` address is in Washington DC, so be sure that your company is configured to collect tax in Washington DC.
-   The customer record is set to exempt for reason G - Resale.
-   Line 1`amount` is $100, and the`taxCode` is`P0000000`.
-   Line 2`amount` is $75, and the`taxCode` is`P0000000`.
-   Line 3`amount` is $10, and the`taxCode` is`FR020100`.

More information about entity use codes is available in the [Avalara Knowledge Center](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/Exempt_reason_matrix_for_the_U.S._and_Canada_entity_use_code_list.html).

## Expected result

Verify that no tax was calculated. In the UI, you should also see that the entity use code is type "Resale."

![](https://www.avalara.com/content/dam/assets/ui/screenshots/test-entity-use-code.png)

## Example

Click on the request and response below to view a working example using cURL.

Request

```
curl    -X POST    -H 'Accept: application/json'    -H 'Authorization: Basic aHR0cHdhdQNoOmY='    -H 'Content-Type: application/json'    --data '{        "lines": [           {             "number":"1",             "quantity":1,             "amount":100,             "taxCode":"P0000000",             "itemCode":"Test SKU",             "description":"Test Item Description",             "discounted": false           },           {             "number":"2",             "quantity":1,             "amount":75,             "taxCode":"P0000000",             "itemCode":"Test SKU",             "description":"Test Item Description",             "discounted": false           },           {             "number":"3",             "quantity":1,             "amount":10,             "taxCode":"FR020100",             "itemCode":"Freight SKU",             "description":"Common Carrier",             "discounted": false           }         ],         "addresses": {           "shipFrom":{             "line1":"100 Ravine Ln NE",             "city":"Bainbridge Island",             "region":"WA",             "country":"US",             "postalCode":"98110-2687"           },           "shipTo":{             "line1":"915 F St Nw",             "city":"Washington",             "region":"DC",             "country":"US",             "postalCode":"20004-1493"           }         },          "code":"Entity use code scenario",         "type":"SalesInvoice",         "companyCode":"DICEYREILLYS",         "date":"2021-03-08",         "customerCode":"Test Customer ID",         "commit":true,         "currencyCode":"USD",         "entityUseCode":"G"    }'    'https://sandbox-rest.avatax.com/api/v2/transactions/create'
```

Response

```
{  "id": 0,  "code": "Entity use code scenario",  ...  "customerUsageType": "G",  "entityUseCode": "G",  ...  "totalAmount": 185,  "totalExempt": 185,  "totalDiscount": 0,  "totalTax": 0,  "totalTaxable": 0,  "totalTaxCalculated": 0,  ...}
```

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