Category exemptions

A category exemption allows you to exempt taxes based on a category ID (cat) for a jurisdiction (loc). The category exemption is set on the invoice and applies to all line items included in the invoice.

The following categories are available in AFC:


Category ID	Name	Description
0	Wildcard	Value used to select all categories. Use this value to exempt all categories.
1	Sales and use taxes	Includes various sales, district, transit, consumer use, vendor use, rental, e-waste, and special or improvement district taxes. Includes Canadian tax types.
2	Business taxes	Typically imposed for the right to do business within a jurisdiction. Includes license taxes, business & occupation taxes, and franchise taxes.
3	Gross receipts taxes	Include Carrier and Statutory Gross Receipts taxes as well as several state-specific surcharges and taxes
4	Excise taxes	Consumer or seller excise taxes, including those specific to communications services and those that apply broadly
5	Connectivity charges	Covers federal and state universal service funds, high-cost funds, and telecommunications relay service and surcharges
6	Regulatory charges	Includes Public Utility Commission Fees and FCC Regulatory Fees. Typically funds the agencies that impose them.
7	E-911 charges	Covers various enhanced 911 and poison control funds.
8	Utility user taxes	Taxes passed by states where utilities are believed to be intangible. Applied in place of sales taxes and often at higher rates.
9	Right of way fees	Covers taxes to maintain telecommunications infrastructure and municipal right of ways
10	Communications services tax	Includes taxes related to satellite, wireless, cable, and nonfacilities
11	Cable regulatory fees	Includes FCC regulatory fees, franchise taxes, and public education and government (PEG) access fees remitted by cable providers
12	Reserved	Reserved tax types are created for unique customer situations or are for AFC development use
13	Value-added taxes	Taxes payable on the consumption of goods and services, general in nature, neutral, and exactly proportional to the price of the goods and services on which they’re computed

The following table shows that the exemption fields are used for category exemptions and default values for the applicable fields:


Key	Name	Default
`cat`	Category ID	None. Must be set.
`loc`	Jurisdiction	None. Must be set.
`exnb`	Exempt nonbillable	`false`
`dom`	Domain	State if State or lower jurisdiction Federal if Country level jurisdiction
`scp`	Scope	State + County + City if State or lower jurisdiction All if Country level jurisdiction

Example 1: Category with scope

View request:

This example demonstrates the use of scope (scp), set to a different combination for each exemption.

{
  "cmpn": {
    "bscl": 1,
    "svcl": 0,
    "fclt": true,
    "frch": true,
    "reg": false
  },
  "inv": [
    {
      "bill": {"ctry": "USA","st": "PR","city": "Adjuntas","zip": "00601","int": true
      },
      "cust": 1,
      "lfln": false,
      "date": "2018-02-01T12:00:00Z",
      "exms": [{  "loc": {    "pcd": 5116000  },  "cat": 7,  "scp": 256},{  "loc": {    "pcd": 5116000  },  "cat": 1,  "scp": 1792},{  "loc": {    "pcd": 5116000  },  "cat": 5,  "scp": 128},{  "loc": {    "pcd": 5116000  },  "cat": 6,  "scp": 1792}
      ],
      "itms": [{  "ref": "2.02.scope",  "chg": 100,  "line": 0,  "sale": 1,  "incl": false,  "tran": 13,  "serv": 6,  "dbt": false,  "adj": false}
      ],
      "invm": true,
      "dtl": true,
      "summ": false
    }
  ]
}

View response:

The effects of scope are apparent based on the category ID (cid) and tax level (lvl).

{
  "inv": [
    {
      "itms": [{  "ref": "2.02.scope",  "txs": [    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 2,      "cat": "E-911 CHARGES",      "cid": 7,      "name": "E911 (Business)",      "exm": 0,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 1,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 35    },    {      "bill": true,      "cmpl": true,      "tm": 62.9,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "State Universal Service Fund",      "exm": 37.1,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 0.0139,      "sur": false,      "tax": 0.8743099999999999,      "lvl": 1,      "tid": 13    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.01,      "sur": false,      "tax": 0,      "lvl": 3,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.105,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "Fed USF Cellular",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.195,      "sur": false,      "tax": 0,      "lvl": 0,      "tid": 55    },    {      "bill": true,      "cmpl": true,      "tm": 100,      "calc": 2,      "cat": "REGULATORY CHARGES",      "cid": 6,      "name": "FCC Regulatory Fee (Wireless)",      "exm": 0,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.016667,      "sur": false,      "tax": 0.016667,      "lvl": 0,      "tid": 170    }  ]}
      ]
    }
  ]

Example 2: Category with domain

View request:

This example demonstrates the use of domain (dom), set to a different domain - with scope - for each exemption.

{
  "cmpn": {
    "bscl": 1,
    "svcl": 0,
    "fclt": true,
    "frch": true,
    "reg": false
  },
  "inv": [
    {
      "bill": {"ctry": "USA","st": "PR","city": "Adjuntas","zip": "00601","int": true
      },
      "cust": 1,
      "lfln": false,
      "date": "2018-02-01T12:00:00Z",
      "exms": [{  "loc": {    "pcd": 5116000  },  "cat": 7,  "dom": 0},{  "loc": {    "pcd": 5116000  },  "cat": 1,  "dom": 1,  "scp": 1792},{  "loc": {    "pcd": 0  },  "cat": 5,  "dom": 3,  "scp": 128},{  "loc": {    "pcd": 2604100  },  "cat": 6,  "dom": 1,  "scp": 128}
      ],
      "itms": [{  "ref": "2.03.dom",  "chg": 100,  "line": 0,  "sale": 1,  "incl": false,  "tran": 13,  "serv": 6,  "dbt": false,  "adj": false}
      ],
      "invm": true,
      "dtl": true,
      "summ": false
    }
  ]
}

View response:

The effects of domain are apparent based on the category ID (cid) and tax level (lvl).

{
  "inv": [
    {
      "itms": [{  "ref": "2.03.dom",  "txs": [    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 2,      "cat": "E-911 CHARGES",      "cid": 7,      "name": "E911 (Business)",      "exm": 0,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 1,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 35    },    {      "bill": true,      "cmpl": true,      "tm": 62.9,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "State Universal Service Fund",      "exm": 37.1,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 0.0139,      "sur": false,      "tax": 0.8743099999999999,      "lvl": 1,      "tid": 13    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.01,      "sur": false,      "tax": 0,      "lvl": 3,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.105,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "Fed USF Cellular",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.195,      "sur": false,      "tax": 0,      "lvl": 0,      "tid": 55    },    {      "bill": true,      "cmpl": true,      "tm": 100,      "calc": 2,      "cat": "REGULATORY CHARGES",      "cid": 6,      "name": "FCC Regulatory Fee (Wireless)",      "exm": 0,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.016667,      "sur": false,      "tax": 0.016667,      "lvl": 0,      "tid": 170    }  ]}
      ]
    }
  ]
}

Example 3: Wildcard category with scope all

View request:

This example demonstrates the use of the wildcard category (cat is 0) to exempt all categories at all levels (scp is 1920). Update the scope (scp) or include a domain (dom) to limit where the wildcard category is applied.

{
  "cmpn": {
    "bscl": 1,
    "svcl": 0,
    "fclt": true,
    "frch": true,
    "reg": false
  },
  "inv": [
    {
      "bill": {"ctry": "USA","st": "PR","city": "Adjuntas","zip": "00601","int": true
      },
      "cust": 1,
      "lfln": false,
      "date": "2018-02-01T12:00:00Z",
      "exms": [{  "loc": {    "pcd": 5116000  },  "cat": 0,  "dom": 0,  "scp": 1920}
      ],
      "itms": [{  "ref": "2.04.wild",  "chg": 100,  "line": 0,  "sale": 1,  "incl": false,  "tran": 13,  "serv": 6,  "dbt": false,  "adj": false}
      ],
      "invm": true,
      "dtl": true,
      "summ": false
    }
  ]
}

View response:

All taxes are exempt except for the nonbillable tax (bill isfalse).

{
  "inv": [
    {
      "itms": [{  "ref": "2.04.wild",  "txs": [    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 2,      "cat": "E-911 CHARGES",      "cid": 7,      "name": "E911 (Business)",      "exm": 0,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 1,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 35    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "State Universal Service Fund",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 0.0139,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 13    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.01,      "sur": false,      "tax": 0,      "lvl": 3,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.105,      "sur": false,    "tax": 0,      "lvl": 1,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "Fed USF Cellular",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.195,      "sur": false,      "tax": 0,      "lvl": 0,      "tid": 55    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 2,      "cat": "REGULATORY CHARGES",      "cid": 6,      "name": "FCC Regulatory Fee (Wireless)",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.0175,      "sur": false,      "tax": 0,      "lvl": 0,      "tid": 170    },    {      "bill": false,      "cmpl": true,      "tm": 37.1,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "Telecommunications Relay Surcharge (Cellular)",      "exm": 62.9,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.02289,      "sur": false,      "tax": 0.8492190000000001,      "lvl": 0,      "tid": 232    }  ]}
      ]
    }
  ]
}

Example 4: Wildcard category with exclude nonbillable

View request:

This example sets the wildcard category (cat is 0) to exempt all categories at all levels (scp is 1920), with the additional Exclude Non-Billable flag (exnb) set totrue. Update the scope (scp) or the domain (dom) to limit where the wildcard category is applied.

{
{
  "cmpn": {
    "bscl": 1,
    "svcl": 0,
    "fclt": true,
    "frch": true,
    "reg": false
  },
  "inv": [
    {
      "bill": {"ctry": "USA","st": "PR","city": "Adjuntas","zip": "00601","int": true
      },
      "cust": 1,
      "lfln": false,
      "date": "2018-02-01T12:00:00Z",
      "exms": [{  "loc": {    "pcd": 5116000  },  "cat": 0,  "dom": 0,  "scp": 1920,  "exnb": true}
      ],
      "itms": [{  "ref": "2.05.wild.nba",  "chg": 100,  "line": 0,  "sale": 1,  "incl": false,  "tran": 13,  "serv": 6,  "dbt": false,  "adj": false}
      ],
      "invm": true,
      "dtl": true,
      "summ": false
    }
  ]
}

View response:

All taxes are exempt, including the nonbillable tax (bill is true).

{
  "inv": [
    {
      "itms": [{  "ref": "2.05.wild.nba",  "txs": [    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 2,      "cat": "E-911 CHARGES",      "cid": 7,      "name": "E911 (Business)",      "exm": 0,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 1,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 35    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "State Universal Service Fund",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5115900,      "rate": 0.0139,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 13    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.01,      "sur": false,      "tax": 0,      "lvl": 3,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "SALES AND USE TAXES",      "cid": 1,      "name": "Sales Tax",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 5116000,      "rate": 0.105,      "sur": false,      "tax": 0,      "lvl": 1,      "tid": 1    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "Fed USF Cellular",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.195,      "sur": false,      "tax": 0,      "lvl": 0,      "tid": 55    },    {      "bill": true,      "cmpl": true,      "tm": 0,      "calc": 2,      "cat": "REGULATORY CHARGES",      "cid": 6,      "name": "FCC Regulatory Fee (Wireless)",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.0175,      "sur": false,      "tax": 0,      "lvl": 0,      "tid": 170    },    {      "bill": false,      "cmpl": true,      "tm": 0,      "calc": 1,      "cat": "CONNECTIVITY CHARGES",      "cid": 5,      "name": "Telecommunications Relay Surcharge (Cellular)",      "exm": 100,      "lns": 0,      "min": 0,      "pcd": 0,      "rate": 0.02289,      "sur": false,      "tax": 0,      "lvl": 0,      "tid": 232    }  ]}
      ]
    }
  ]
}