# Category exemptions Source: https://developer.avalara.com/products/communications/integration-guides/communications-integration/wcn8122785367305/ Guide: Communications # Category exemptions Learn about category exemptions, their fields, and examples of their application in AFC. 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](https://developer.avalara.com/api-reference/communications/v2/models/Location/) 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` is`false`). ``` { "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 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 } ] } ``` **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 } ]} ] } ] } ```