Exemptions and certificates

The AI agent explains how exemptions and certificates affect tax calculations. When an exemption applies, the AI agent specifies whether it covers the full transaction or selected line items and identifies the applicable certificate.

Full exemption

When a full exemption applies, the AI agent clearly states that no tax was calculated and references the associated certificate.

For example, the AI agent explains: “No tax was calculated because ABC Company has a valid resale certificate on file. Certificate #RC-2024-12345 expires December 31, 2025 and covers all items in this transaction for the state of California.”
Partial exemption

When a partial exemption applies, the AI agent explains which items are taxable and which items are exempt, and references the certificate that supports the exemption.

For example, the AI agent explains: “This transaction has mixed tax treatment: Lines 1–3 (office supplies, $500) are fully taxed at 8.25%. Lines 4–5 (manufacturing equipment, $2,000) are exempt under your Manufacturing Exemption Certificate #MFG-2024-789.”
Expiring certificate warning

When a certificate is approaching expiration, the AI agent surfaces a proactive notification to support compliance awareness.

For example, the AI agent explains: “This customer's exemption certificate expires in 30 days. Consider sending a renewal request via CertExpress.”

The AI agent doesn't modify exemption or certificate data within this workflow. It explains how certificate status affects the tax calculation and highlights time-sensitive renewal considerations when applicable.