# Cost center exemption Source: https://developer.avalara.com/avatax-for-ap/utw8989535937974/ # Cost center exemption In this example, you'll use AvaTax to confirm consumer use tax for the exempt vendor that we created in the [Set up vendors](https://developer.avalara.com/avatax-for-ap/configure-your-avatax-account/set-up-vendors) step. This example shows goods being purchased from and shipped to locations in Hawaii. The `VendorChargedTax` override amount is $44.09. The response indicates that the `totalTaxCalculated` and the `totalTax` on the transaction are both $0.00 and that the transaction is exempt from tax. The recommended action for this transaction is that the variance can be ignored because the customer is exempt. **View request**: ``` { "createTransactionModel": { "addresses": { "shipFrom": { "RequestId": 2, "type": "shipFrom", "country": "US", "line1": "530 S King St", "city": "Honolulu", "region": "HI", "postalCode": "96813-3014" }, "shipTo": { "RequestId": 2, "type": "shipTo", "country": "US", "line1": "530 S King St", "city": "Honolulu", "region": "HI", "postalCode": "96813-3014" } }, "description": "", "parameters": [], "taxOverride": { "type": "VendorChargedTax", "reason": "VCT Reason", "taxAmount": "44.09" }, "lines": [ { "RequestLineId": "1", "RequestId": 2, "number": "1", "quantity": "1", "amount": "500", "discounted": false, "taxIncluded": false, "marketplaceLiabilityType": "Seller", "taxOverride": {}, "parameters": [ { "name": "CostCenter", "value": "DemoCostCenter" }], "addresses": {} }, { "RequestLineId": "2", "RequestId": 2, "number": "2", "quantity": "1", "amount": "500", "discounted": false, "taxIncluded": false, "marketplaceLiabilityType": "Seller", "taxOverride": {}, "parameters": [ { "name": "CostCenter", "value": "DemoCostCenter" } ], "addresses": {} } ], "type": "PurchaseInvoice", "date": "2024-08-02", "debugLevel": "Normal", "detailLevel": "Summary", "RequestId": 2, "customerCode": "BartzTestExempt", "companyCode": "BARTZTEST", "commit": true }, "adjustmentReason": "ReconciledWithGeneralLedger", "adjustmentDescription": "sdf" } ``` **View response**: ``` { "id": 85062394216668, "code": "0ba3105b-c574-430b-8cba-dffcf6105d84", "companyId": 7825858, "date": "2024-08-02", "status": "Cancelled", "type": "PurchaseInvoice", "batchCode": "", "currencyCode": "USD", "exchangeRateCurrencyCode": "USD", "customerUsageType": "L", "entityUseCode": "L", "customerVendorCode": "BartzTestExempt", "customerCode": "BartzTestExempt", "exemptNo": "L", "reconciled": false, "locationCode": "", "reportingLocationCode": "", "purchaseOrderNo": "", "referenceCode": "", "salespersonCode": "", "taxOverrideType": "VendorChargedTax", "taxOverrideAmount": 44.09, "taxOverrideReason": "VCT Reason", "totalAmount": 1000.0, "totalExempt": 1000.0, "totalDiscount": 0.0, "totalTax": 0.0, "totalTaxable": 0.0, "totalTaxCalculated": 0.0, "adjustmentReason": "NotAdjusted", "adjustmentDescription": "", "locked": false, "region": "CA", "country": "US", "version": 1, "softwareVersion": "24.7.1.0", "originAddressId": 85062394216670, "destinationAddressId": 85062394216670, "exchangeRateEffectiveDate": "2024-08-02", "exchangeRate": 1.0, "description": "", "email": "", "businessIdentificationNo": "", "modifiedDate": "2024-08-02T16:34:56.1411368Z", "modifiedUserId": 1443662, "taxDate": "2024-08-02", "lines": [ { "id": 85062394216677, "transactionId": 85062394216668, "lineNumber": "1", "boundaryOverrideId": 0, "customerUsageType": "", "entityUseCode": "", "description": "Yarn", "destinationAddressId": 85062394216669, "originAddressId": 85062394216670, "discountAmount": 0.0, "discountTypeId": 0, "exemptAmount": 500.0, "exemptCertId": 39702802, "exemptNo": "L", "isItemTaxable": false, "isSSTP": false, "itemCode": "Y0002", "lineAmount": 500.0, "quantity": 1.0, "ref1": "", "ref2": "", "reportingDate": "2024-08-02", "revAccount": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0, "taxCalculated": 0.0000, "taxCode": "PS081282", "taxCodeId": 38007, "taxDate": "2024-08-02", "taxEngine": "", "taxOverrideType": "VendorChargedTax", "businessIdentificationNo": "", "taxOverrideAmount": 22.05, "taxOverrideReason": "Account Payable", "taxIncluded": false, "marketplaceLiabilityType": "Seller", "details": [ { "id": 85062394216692, "transactionLineId": 85062394216677, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "06", "jurisName": "CALIFORNIA", "jurisdictionId": 5000531, "signatureCode": "AGAM", "stateAssignedNo": "", "jurisType": "STA", "jurisdictionType": "State", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.060000, "rateRuleId": 1523998, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA STATE TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 12.9100, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" }, { "id": 85062394216693, "transactionLineId": 85062394216677, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "001", "jurisName": "ALAMEDA", "jurisdictionId": 238, "signatureCode": "AGAO", "stateAssignedNo": "", "jurisType": "CTY", "jurisdictionType": "County", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.002500, "rateRuleId": 1524002, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA COUNTY TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 0.5400, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" }, { "id": 85062394216694, "transactionLineId": 85062394216677, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "EMAK0", "jurisName": "ALAMEDA COUNTY DISTRICT TAX SP", "jurisdictionId": 2001061409, "signatureCode": "EMAK", "stateAssignedNo": "966", "jurisType": "STJ", "jurisdictionType": "Special", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.030000, "rateRuleId": 2456506, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA SPECIAL TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 6.4500, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" }, { "id": 85062394216695, "transactionLineId": 85062394216677, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "EMSJ0", "jurisName": "ALAMEDA CO LOCAL TAX SL", "jurisdictionId": 2001061755, "signatureCode": "EMSJ", "stateAssignedNo": "01", "jurisType": "STJ", "jurisdictionType": "Special", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.010000, "rateRuleId": 1524022, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA SPECIAL TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 2.1500, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" } ], "nonPassthroughDetails": [], "lineLocationTypes": [ { "documentLineLocationTypeId": 85062394216680, "documentLineId": 85062394216677, "documentAddressId": 85062394216670, "locationTypeCode": "ShipFrom" }, { "documentLineLocationTypeId": 85062394216681, "documentLineId": 85062394216677, "documentAddressId": 85062394216669, "locationTypeCode": "ShipTo" } ], "parameters": [ { "name": "CostCenter", "value": "DemoCostCenter" }, { "name": "APDocumentStatus", "value": "Ignore" }, { "name": "APRuleApplied", "value": "Rule Applied to line, with Rule Type : WhenToIgnore, Cause : Vendor BartzTestExempt is defined as exempt Vendor." }, { "name": "VarianceCalculatedForLine", "value": "-22.04" }, { "name": "SalesVarianceCalculatedForLine", "value": "-22.04" }, { "name": "UseVarianceCalculatedForLine", "value": "-22.04" }, { "name": "VendorChargedTaxForLine", "value": "22.05" } ], "hsCode": "", "costInsuranceFreight": 0.0, "vatCode": "", "vatNumberTypeId": 0, "category": "Yarn" }, { "id": 85062394216678, "transactionId": 85062394216668, "lineNumber": "2", "boundaryOverrideId": 0, "customerUsageType": "", "entityUseCode": "", "description": "Yarn", "destinationAddressId": 85062394216669, "originAddressId": 85062394216670, "discountAmount": 0.0, "discountTypeId": 0, "exemptAmount": 500.0, "exemptCertId": 39702802, "exemptNo": "L", "isItemTaxable": false, "isSSTP": false, "itemCode": "Y0002", "lineAmount": 500.0, "quantity": 1.0, "ref1": "", "ref2": "", "reportingDate": "2024-08-02", "revAccount": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0, "taxCalculated": 0.0000, "taxCode": "PS081282", "taxCodeId": 38007, "taxDate": "2024-08-02", "taxEngine": "", "taxOverrideType": "VendorChargedTax", "businessIdentificationNo": "", "taxOverrideAmount": 22.04, "taxOverrideReason": "Account Payable", "taxIncluded": false, "marketplaceLiabilityType": "Seller", "details": [ { "id": 85062394216709, "transactionLineId": 85062394216678, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "06", "jurisName": "CALIFORNIA", "jurisdictionId": 5000531, "signatureCode": "AGAM", "stateAssignedNo": "", "jurisType": "STA", "jurisdictionType": "State", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.060000, "rateRuleId": 1523998, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA STATE TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 12.9000, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" }, { "id": 85062394216710, "transactionLineId": 85062394216678, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "001", "jurisName": "ALAMEDA", "jurisdictionId": 238, "signatureCode": "AGAO", "stateAssignedNo": "", "jurisType": "CTY", "jurisdictionType": "County", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.002500, "rateRuleId": 1524002, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA COUNTY TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 0.5400, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" }, { "id": 85062394216711, "transactionLineId": 85062394216678, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "EMAK0", "jurisName": "ALAMEDA COUNTY DISTRICT TAX SP", "jurisdictionId": 2001061409, "signatureCode": "EMAK", "stateAssignedNo": "966", "jurisType": "STJ", "jurisdictionType": "Special", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.030000, "rateRuleId": 2456506, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA SPECIAL TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 6.4500, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" }, { "id": 85062394216712, "transactionLineId": 85062394216678, "transactionId": 85062394216668, "addressId": 85062394216669, "country": "US", "region": "CA", "countyFIPS": "", "stateFIPS": "06", "exemptAmount": 500.0000, "exemptReasonId": 3, "exemptRuleId": 214174, "inState": false, "jurisCode": "EMSJ0", "jurisName": "ALAMEDA CO LOCAL TAX SL", "jurisdictionId": 2001061755, "signatureCode": "EMSJ", "stateAssignedNo": "01", "jurisType": "STJ", "jurisdictionType": "Special", "nonTaxableAmount": 0.0000, "nonTaxableRuleId": 0, "nonTaxableType": "RateRule", "rate": 0.010000, "rateRuleId": 1524022, "rateSourceId": 3, "serCode": "", "sourcing": "Destination", "tax": 0.0000, "taxableAmount": 0.0000, "taxType": "Sales", "taxSubTypeId": "S", "taxTypeGroupId": "SalesAndUse", "taxName": "CA SPECIAL TAX", "taxAuthorityTypeId": 45, "taxRegionId": 4017445, "taxCalculated": 0.0000, "taxOverride": 2.1500, "rateType": "General", "rateTypeCode": "G", "taxableUnits": 0.0000, "nonTaxableUnits": 0.0000, "exemptUnits": 500.0000, "unitOfBasis": "PerCurrencyUnit", "isNonPassThru": false, "isFee": false, "reportingTaxableUnits": 0.0, "reportingNonTaxableUnits": 0.0, "reportingExemptUnits": 500.0, "reportingTax": 0.0, "reportingTaxCalculated": 0.0, "liabilityType": "Seller", "chargedTo": "Buyer" } ], "nonPassthroughDetails": [], "lineLocationTypes": [ { "documentLineLocationTypeId": 85062394216697, "documentLineId": 85062394216678, "documentAddressId": 85062394216670, "locationTypeCode": "ShipFrom" }, { "documentLineLocationTypeId": 85062394216698, "documentLineId": 85062394216678, "documentAddressId": 85062394216669, "locationTypeCode": "ShipTo" } ], "parameters": [ { "name": "CostCenter", "value": "DemoCostCenter" }, { "name": "APDocumentStatus", "value": "Ignore" }, { "name": "APRuleApplied", "value": "Rule Applied to line, with Rule Type : WhenToIgnore, Cause : Vendor BartzTestExempt is defined as exempt Vendor." }, { "name": "VarianceCalculatedForLine", "value": "-22.04" }, { "name": "SalesVarianceCalculatedForLine", "value": "-22.04" }, { "name": "UseVarianceCalculatedForLine", "value": "-22.04" }, { "name": "VendorChargedTaxForLine", "value": "22.04" } ], "hsCode": "", "costInsuranceFreight": 0.0, "vatCode": "", "vatNumberTypeId": 0, "category": "Yarn" } ], "addresses": [ { "id": 85062394216669, "transactionId": 85062394216668, "boundaryLevel": "Address", "line1": "1541 Whispering Oaks Way", "line2": "", "line3": "", "city": "Pleasanton", "region": "CA", "postalCode": "94566-3515", "country": "US", "taxRegionId": 4017445, "latitude": "37.657091", "longitude": "-121.89373" }, { "id": 85062394216670, "transactionId": 85062394216668, "boundaryLevel": "Address", "line1": "530 S King St", "line2": "", "line3": "", "city": "Honolulu", "region": "HI", "postalCode": "96813-3014", "country": "US", "taxRegionId": 2060806, "latitude": "21.30462", "longitude": "-157.857202" } ], "locationTypes": [ { "documentLocationTypeId": 85062394216672, "documentId": 85062394216668, "documentAddressId": 85062394216670, "locationTypeCode": "ShipFrom" }, { "documentLocationTypeId": 85062394216673, "documentId": 85062394216668, "documentAddressId": 85062394216670, "locationTypeCode": "ShipTo" } ], "summary": [ { "country": "US", "region": "CA", "jurisType": "State", "jurisCode": "06", "jurisName": "CALIFORNIA", "taxAuthorityType": 45, "stateAssignedNo": "", "taxType": "Sales", "taxSubType": "S", "taxName": "CA STATE TAX", "rateType": "General", "taxable": 0.00, "rate": 0.060000, "tax": 0.00, "taxCalculated": 0.00, "nonTaxable": 0.00, "exemption": 1000.00 }, { "country": "US", "region": "CA", "jurisType": "County", "jurisCode": "001", "jurisName": "ALAMEDA", "taxAuthorityType": 45, "stateAssignedNo": "", "taxType": "Sales", "taxSubType": "S", "taxName": "CA COUNTY TAX", "rateType": "General", "taxable": 0.00, "rate": 0.002500, "tax": 0.00, "taxCalculated": 0.00, "nonTaxable": 0.00, "exemption": 1000.00 }, { "country": "US", "region": "CA", "jurisType": "Special", "jurisCode": "EMSJ0", "jurisName": "ALAMEDA CO LOCAL TAX SL", "taxAuthorityType": 45, "stateAssignedNo": "01", "taxType": "Sales", "taxSubType": "S", "taxName": "CA SPECIAL TAX", "rateType": "General", "taxable": 0.00, "rate": 0.010000, "tax": 0.00, "taxCalculated": 0.00, "nonTaxable": 0.00, "exemption": 1000.00 }, { "country": "US", "region": "CA", "jurisType": "Special", "jurisCode": "EMAK0", "jurisName": "ALAMEDA COUNTY DISTRICT TAX SP", "taxAuthorityType": 45, "stateAssignedNo": "966", "taxType": "Sales", "taxSubType": "S", "taxName": "CA SPECIAL TAX", "rateType": "General", "taxable": 0.00, "rate": 0.030000, "tax": 0.00, "taxCalculated": 0.00, "nonTaxable": 0.00, "exemption": 1000.00 } ], "parameters": [ { "name": "APRuleApplied", "value": "Rule Applied to line, with Rule Type : WhenToIgnore, Cause : Vendor BartzTestExempt is defined as exempt Vendor." }, { "name": "VarianceCalculatedForDocument", "value": "-44.08" }, { "name": "ApplicableAPPostActions", "value": "NoAccrualOvercharge" } ], "apStatusCode": "NoAccrualExemptedVendor", "apStatus": "Ignored - This vendor is always exempted" } ```