Understand exemptions

Exemptions remove tax liability from a jurisdiction. An exemption should be used when you have an exemption certificate that allows you to be exempted from certain taxes for a given jurisdiction or group of jurisdictions.

AFC accepts the following different types of exemptions:

Category Exemption: Exemptions applied by tax category. Provide the Category ID (cat) 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 (lvl). Specify the location (loc) if applicable to a specific jurisdiction.
Jurisdiction Tax Rule Exemption: Exemptions applied automatically by the AFC Tax Engine based on the characteristics of the transaction.

Note

Category exemptions and tax type exemptions can’t both be included within the same single exemption but can be applied simultaneously within a list of exemptions.