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Chapter 4.3.4.1 - 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.

Categories

Use the category wildcard (set cat to 0) to exempt all categories.

A list of tax types is available in the /api/v2/afc/taxtype/{taxType} Lookup endpoint. Pass “*” in {taxType} to return all tax types.

Category List

Category ID Name Description
0 Wildcard Value used to select all categories
1 Sales and Use Taxes Includes a variety of 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 as well as 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 a variety of 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 non-facilities
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 are computed

Exemption fields

Exemption fields used for category exemptions and default values for the applicable fields:

Key Name Default if Not Set
cat Category ID No default - must be set
loc Jurisdiction No default - must be set
exnb Exempt Non-Billable false
scp Scope State + County + City if State or lower jurisdiction
All if Country level jurisdiction
dom Domain State if State or lower jurisdiction
Federal if Country level jurisdiction

For more information about fields, see Exemptions.

Category Exemption Example 1 - Scope

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
    }
  ]
}

Response

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

View the Response JSON
{
  "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
            }
          ]
        }
      ]
    }
  ]
}

Category Exemption Example 2 - Domain

This example demonstrates the use of domain (dom), set to a different domain - in combination 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
    }
  ]
}

Response

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

View the Response JSON
{
  "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
            }
          ]
        }
      ]
    }
  ]
}

Category Exemption Example 3 - Wildcard Category with Scope All

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
    }
  ]
}

Response

All taxes are exempt except for the non-billable tax (bill is false).

View the Response JSON
{
  "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
            }
          ]
        }
      ]
    }
  ]
}

Category Exemption Example 4 - Wildcard Category with Exclude Non-Billable

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 to true. 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
    }
  ]
}

Response

All taxes are exempt, including the non-billable tax (bill is false).

View the Response JSON
{
  "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
            }
          ]
        }
      ]
    }
  ]
}