Avalara Tax Codes in Rillet
Manage customer taxability in Rillet using Avalara (AvaTax) tax entity use codes. These codes determine whether sales tax is applied when invoices are generated.
What Are Tax Entity Use Codes?
Tax entity use codes define a customer’s tax status. They indicate whether a customer is:
Taxable
Tax-exempt
Exempt under a specific exemption category
When an invoice is created, Rillet sends the customer’s tax entity use code to Avalara. Avalara then determines whether sales tax should be applied.
Where Tax Codes Are Managed
Tax entity use codes are configured at the customer level in Rillet through the Default Tax Entity Use Code field.
By default, customers are marked as Taxable (Non-Exempt).
For step-by-step instructions on updating a customer’s tax status, see Avalara Workflow.
When to Use an Exemption Code
If a customer qualifies for tax exemption, select the appropriate exemption code provided by Avalara.
Common scenarios include:
Nonprofit organizations
Government entities
Resale certificates
Other jurisdiction-specific exemptions
The selected code determines how Avalara evaluates the transaction during tax calculation.
Important Exemption documentation should be collected and validated before marking a customer as tax-exempt.
How Tax Codes Affect Invoices
When invoices are generated:
The customer’s tax entity use code is sent to Avalara.
Avalara evaluates the exemption status.
Tax is applied or excluded based on the selected code.
If the tax code is updated before an invoice is committed, tax will recalculate when the invoice is saved.
Committed invoices remain locked for tax reporting purposes.
See Also
For related tax configuration and workflows, review the following articles:
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