# Chapter 4.3.12 - Exclusions

Source: https://developer.avalara.com/products/communications/integration-guides/dev-guide_rest_v2/customizing-transactions/sample-transactions/exclusion/

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Exclusions allow you to specify the state(s) where you want to exclude all taxes. Exclusions generally apply at the company level. State or country exclusions can either be applied to a `client_profile_id` in [an exclusion file for the account](/communications/dev-guide_rest_v2/customizing-transactions/client-profiles/) or included in the transaction. We do not recommend doing both.

If a state is excluded, Federal taxes may still apply. If a country is excluded, no taxes will apply.

#### Note

Although the `CalcTaxes` request gives the user the flexibility to input exclusion information for each transaction, we recommend using a [client profile](/communications/dev-guide_rest_v2/customizing-transactions/client-profiles/) with a custom exclusion file applied. This results in better performance from the Tax Engine because your exclusion settings are cached _before_ tax calculation begins.

#### Compliance Reporting Note

Excluded tax jurisdictions will either appear as unknown or will not be included in any Transaction Service Reports (TSR) produced.

### State Exclusion

California (`st`) in the USA (`ctry`) is being excluded within the Exclusion (`excl`) object.

```json
{ "cmpn": { "bscl": 0, "svcl": 0, "fclt": false, "frch": false, "reg": false, "excl": [ { "ctry": "USA", "st": "CA", "excl": true } ] }, "inv": [ { "doc": "TEST-VOIP INVOICE", "cmmt": false, "bill": { "cnty": "San Francisco", "ctry": "USA", "int": true, "geo": false, "city": "San Francisco", "st": "CA", "zip": "94102" }, "cust": 0, "lfln": false, "date": "2017-05-01T12:00:00Z", "itms": [ { "ref": "Line Item 001 - VoIP/Access Charge", "chg": 100, "line": 0, "sale": 1, "incl": false, "tran": 19, "serv": 6, "dbt": false, "adj": false }, { "ref": "Line Item 002 - VoIP/Lines", "chg": 0, "line": 10, "sale": 1, "incl": false, "tran": 19, "serv": 21, "dbt": false, "adj": false }, { "ref": "Line Item 003 - VoIP/Equip Rental", "chg": 25, "line": 0, "sale": 1, "incl": false, "tran": 19, "serv": 37, "dbt": false, "adj": false } ], "invm": true, "dtl": true, "summ": true, "opt": [ { "key": "1", "val": "VoIP Sample Line Items Invoice ABC-ZZZ" } ] } ]}
```

#### Response

All California state level taxes (`lvl` of 1) are excluded from the response.

[View the Response JSON](#collapse1)

```json
{ "inv": [ { "doc": "TEST-VOIP INVOICE", "itms": [ { "ref": "Line Item 001 - VoIP/Access Charge", "txs": [ { "bill": true, "cmpl": true, "tm": 64.9, "calc": 1, "cat": "CONNECTIVITY CHARGES", "cid": 5, "name": "FUSF (VoIP)", "exm": 35.099999999999994, "lns": 0, "min": 0, "pcd": 0, "rate": 0.174, "sur": false, "tax": 11.2926, "lvl": 0, "tid": 162 }, { "bill": true, "cmpl": true, "tm": 64.9, "calc": 1, "cat": "REGULATORY CHARGES", "cid": 6, "name": "FCC Regulatory Fee (VoIP)", "exm": 35.099999999999994, "lns": 0, "min": 0, "pcd": 0, "rate": 0.00302, "sur": false, "tax": 0.19599800000000003, "lvl": 0, "tid": 226 } ] }, { "ref": "Line Item 002 - VoIP/Lines" }, { "ref": "Line Item 003 - VoIP/Equip Rental" } ], "summ": [ { "max": 2147483647, "min": 0, "tchg": 64.9, "calc": 1, "cat": "CONNECTIVITY CHARGES", "cid": 5, "name": "FUSF (VoIP)", "exm": 35.099999999999994, "lns": 0, "pcd": 0, "rate": 0.174, "sur": false, "tax": 11.2926, "lvl": 0, "tid": 162 }, { "max": 2147483647, "min": 0, "tchg": 64.9, "calc": 1, "cat": "REGULATORY CHARGES", "cid": 6, "name": "FCC Regulatory Fee (VoIP)", "exm": 35.099999999999994, "lns": 0, "pcd": 0, "rate": 0.00302, "sur": false, "tax": 0.19599800000000003, "lvl": 0, "tid": 226 } ] } ]}
```

### Federal Exclusion

USA (`ctry`) is being excluded within the Exclusion (`excl`) object.

```json
{ "cmpn": { "bscl": 0, "svcl": 0, "fclt": false, "frch": false, "reg": false,	"excl": [ { "ctry": "USA", "excl": true } ] }, "inv": [ { "doc": "TEST-VOIP INVOICE", "cmmt": false, "bill": { "cnty": "San Francisco", "ctry": "USA", "int": true, "geo": false, "city": "San Francisco", "st": "CA", "zip": "94102" }, "cust": 0, "lfln": false, "date": "2017-05-01T12:00:00Z", "itms": [ { "ref": "Line Item 001 - VoIP/Access Charge", "chg": 100, "line": 0, "sale": 1, "incl": false, "tran": 19, "serv": 6, "dbt": false, "adj": false }, { "ref": "Line Item 002 - VoIP/Lines", "chg": 0, "line": 10, "sale": 1, "incl": false, "tran": 19, "serv": 21, "dbt": false, "adj": false }, { "ref": "Line Item 003 - VoIP/Equip Rental", "chg": 25, "line": 0, "sale": 1, "incl": false, "tran": 19, "serv": 37, "dbt": false, "adj": false } ], "invm": true, "dtl": true, "summ": true, "opt": [ { "key": "1", "val": "VoIP Sample Line Items Invoice ABC-ZZZ" } ] } ]}
```

#### Response

All taxes are excluded from the response.

[View the Response JSON](#collapse2)

```json
{ "inv": [ { "doc": "TEST-VOIP INVOICE", "itms": [ { "ref": "Line Item 001 - VoIP/Access Charge" }, { "ref": "Line Item 002 - VoIP/Lines" }, { "ref": "Line Item 003 - VoIP/Equip Rental" } ] } ]}
```

### See Also

#### Input Objects

-   [`CalcTaxes` request](/communications/dev-guide_rest_v2/reference/calc-taxes-request/)
-   [Exclusion](/communications/dev-guide_rest_v2/reference/exclusion/)
-   [Invoice](/communications/dev-guide_rest_v2/reference/invoice/)
-   [Line item](/communications/dev-guide_rest_v2/reference/line-item/)

#### Output Objects

-   [`CalcTaxes` response](/communications/dev-guide_rest_v2/reference/calc-taxes-response/)
-   [Detailed tax results](/communications/dev-guide_rest_v2/reference/detailed-tax-result/)
-   [Summarized tax results](/communications/dev-guide_rest_v2/reference/summarized-tax-result/)

#### Helpful Pages

-   [Lookups endpoints](/communications/dev-guide_rest_v2/getting-started/environments-endpoints#lookups)
-   [Client profile](/communications/dev-guide_rest_v2/customizing-transactions/client-profiles/)

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