Introduction
A sales tax exemption is when a purchaser can legally make a tax-free purchase with the help of an exemption certificate. This certificate documents the exemption the purchaser claims to make a tax-free purchase. Common types of exemption certificates you can upload in Anrok include:
- Multiple Points of Use (Apportionment) Exemption — A document granted for certain items or services that will be used at multiple locations or for multiple purposes. This exemption allows the purchaser to pay a reduced sales tax rate based on the anticipated multiple uses or locations. See Multiple Points of Use (MPU) policy.
- Non-Profit Exemption — A document issued to qualifying nonprofit organizations by a governmental authority, such as the Internal Revenue Service (IRS). This certificate exempts the organization from certain taxes that would otherwise apply to for-profit businesses.
- Resale (Reseller) Exemption — A document that proves to the seller that the buyer is a legitimate reseller and eligible for sales tax exemption. Reseller purchases are generally tax-exempt because the ultimate consumer will pay sales tax when they purchase the product. See Overview of resale certificates.
If one of your customers has an exemption certificate, you are responsible for determining whether they are making an exempt purchase and adequately completing the exemption certificate. Once the certificate is verified, you can add the certificate to Anrok to prevent tax from being applied to the customer's invoices.
If one of your customers opts to self-assess and report sales tax to the jurisdiction directly, you can upload their direct payment permit, which will function in Anrok similarly to an exemption certificate and prevent tax from being calculated on their invoices.
Add an exemption certificate
You can upload a customer's tax exemption certificates into Anrok to prevent tax from being calculated on their transactions.
Note
Anrok will automatically reprocess any unfiled transactions from the past 60 days when you upload an exemption certificate. This means these transactions will be reassessed upon certificate creation, and tax refunds will be issued automatically when relevant. Transactions that have been filed or are older than 60 days will not be automatically reprocessed. You can submit this form if you need transactions that are already filed or older than 60 days to be reprocessed. Transactions that have already been filed will be negated and recreated on your next return for a tax credit.
Try uploading a tax exemption certificate in the demo above ☝️
- In the Anrok app
, go to Certificates. Take me there!
-
Select Add or request certificate, then click Upload a certificate.
Tip
Customers on Anrok's Growth plan can select to automatically prefill certificate information using AI. Please submit this form to upgrade and unlock AI prefill capabilities.
- Under Customer details, search for the customer in the search bar. If the customer does not exist in Anrok yet (e.g., you have not created an invoice for the customer yet), click +Add customer, then enter the Customer ID and Customer name. When entering the customer ID, be sure to add the
billing system:prefix so that it maps to your billing system successfully. For example, if the customer ID is10000in NetSuite, you would enternetsuite:10000as the customer ID in Anrok. - Under Certificate details, upload the exemption certificate, then enter the Start date.
- Under Jurisdiction details, enter the Jurisdiction where the exemption certificate is valid. If there are multiple jurisdictions, you can select +Add a jurisdiction.
- When you are finished, click Save.
Bulk import exemptions
If you have a large number of exemptions to add to Anrok and would prefer to import your exemptions using a CSV file, please send a CSV to technicalsolutions@anrok.com with the following input data.
Required columns:
-
Customer ID
- Please include the proper format with the billing system prefix so that it maps to your billing system successfully.
- If the Customer ID is 10000 in NetSuite, enter
netsuite:10000as the Customer ID for import to Anrok.
- Customer name
-
Start date
- Date format is YYYY-MM-DD.
Optional fields that only need be included if relevant to your specific customer(s):
-
End date
- Value can be left blank. If present, format is YYYY-MM-DD.
-
Jurisdiction ID
- US state abbreviation code, e.g. NY for New York or TX for Texas.
- Exemption number
- Exempt reason
- Notes
-
Filename
- To upload a specific exemption certificate file per customer, put the exact filename in this column of your bulk exemption file. When emailing technicalsolutions@anrok.com, share a zip file that includes all exemption files in addition to the bulk import exemptions CSV.
Certificate formats
Anrok uses the certificates uploaded into the customer ID to adjust the transaction's tax implications. When providing a certificate to Anrok, it is important to ensure that the exemption certificate is valid within the jurisdiction. Listed below are common certificate formats:
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