Exemptions applied by tax category
Provide the Category ID (cat) and the location (loc).
Exempt taxes at a federal, state, county, and/or local level
Provide the tax level (lvl) and the location (loc).
Tax Type Exemption
Exemptions applied to a specific tax type, tax level, and jurisdiction (if needed)
Provide the tax type (tpe) and tax level (</code>lvl</code>). Specify the location (loc) if applicable to a specific jurisdiction.
More information about the Exemption object can be found here.
Although the CalcTaxes request gives the user the flexibility to input exemption information for each transaction, we recommend using a Client Profile with a custom exemption file applied. This results in better performance from the Tax Engine because your exemption settings are cached before tax calculation begins.
Category Exemption Example
The “Sales and Use Taxes” category - Category ID (cat) 1 - is being exempted for California, USA within the exemption (exms) object.
The impact of the category exemption can be seen in 2 places in the response:
Detailed taxes (txs for Line Item 003 - the 3 taxes returned are all part of the "Sales and Use Taxes" category (cid is 1) and the tax 0 on each as a result
Summarized taxes (summ) - the last 3 taxes listed are part of the "Sales and Use Taxes" category (cid is 1) and the tax 0 on each as well
Exempt Sale Amount (exm) contains the amount exempted
Most Federal taxes are only exempted when selling to a reseller who is registered, reporting, and remitting to the regulating agency. For this reason, a wholesale exemption or a tax type exemption must be used to exempt taxes at the Federal level.