TaxCloud Exemption

TaxCloud Exemption

Description

This module allows the creation of Exemption Certificates in Odoo and submission to TaxCloud. It is compatible with multi-company environments. Valid exemption certificates are automatically applied to Invoices and Credit notes based on the Delivery Address selected.

Related App

To use the exemption features on the Sales Order, install the TaxCloud Exemption (Sale) module, which is available in the Odoo Apps Store.

The main TaxCloud connector app, Account TaxCloud, should also be installed. If it has not been installed yet, please review its documentation.

Access Rights

To configure the Access Rights, navigate to Settings app  ➡ Users and locate the “Manage TaxCloud Exemption” boolean under the Technical section.

A user will have the ability to Create, Cancel, and Export Exemptions to TaxCloud if this Boolean is enabled.

Users without this access will be able to view the list of exemptions and use them.

Functionality

On the contact form, some new fields have been added to be used on the Exemption Certificates.

The “Tax Number Type” field is used to indicate the type of Tax ID, and the “State of Issue” is used to specify where the Tax ID was issued.

On the Sales & Purchase tab, if the “TaxCloud First Name” and "TaxCloud Last Name" fields are filled, then the Name field will be computed using the First Name and Last Name. However, the Name in the Contact can still be changed. When sending the information to TaxCloud to create the Exemption Certificate, it will use the TaxCloud First Name and Last Name if it is available, otherwise, the Name will be split and used as a First Name and Last Name.

The Odoo-based Industry field is used for the TaxCloud Business Type by adding “Used By TaxCloud” and “TaxCloud Business Type” to the Industry menu to indicate that the industry is applicable for the TaxCloud Business Type. These fields are not editable and will be updated during the installation of the module. When the Industry on the contact is set to Other Service, a new field will be displayed for specifying the Other Business Type if the desired business type is not available among the predefined Business types.

A new smart button has been included to list the Exemption Certificates for the customer and all its related Contacts. On the related contacts, the smart button will list its exemptions and the parent company's exemptions.

Exemptions

To create a new Exemption, navigate to the Accounting app, and it can be seen that a new sub-menu “Exemptions”  is added under the Customers menu.

Select the Customer, it will list the customers based on the company selected on the record. If the Tax Number Type, Tax ID, State of Issue, and Business Type are entered on the selected customer, these values will be automatically populated. However, these values can still be edited manually.

When the Business Type field is set to Other Services, a new Other Business Type field becomes visible for entering the other business type.

The Company field automatically defaults to the current company selected by the user.  The user can select a different company if required. The Exemption certificate will be created in the TaxCloud store used for that company.

Exemption Certificate Information:

The Exemption validity is based on the “Start Date” and “Expiration Date” set on the Exemption. The “Expiration Date” is not a required field.

If the Expiration Date is set before today’s date, then the certificate is considered Expired and is not used in any of the Invoices. An “EXPIRED” banner is added at the top right corner when the Exemption expires.

Certificate Reason is used to fill the reason for the exemption certificate. If the Certificate Reason is set to Other, a new field Other Reason is displayed.

Exemption State and Its Details:

Reason for Exemption and  ID Number are used to specify the default reason and ID on the exemption lines.

The Group of States feature allows users to add multiple states at once with a predefined set of states in the exemption, rather than manually adding each of the states separately.

To define the Group of States, navigate to Accounting app ➡ Configuration ➡ TaxCloud Exemption.

• Name:  A recognizable name for the group of states.
• Country: Defaults to the United States.
• States: Displays a list of the selected country’s states with the option to add multiple states from the list view.

States will list only the States in the United States. If a Group of States is selected then the states from that group will be added. Additionally, a State can be added manually to the list.

Exemption Lines are created automatically when the States are selected, the fields on the exemption lines can be edited manually if needed.

Once all the data is filled, click the Export Exemption button to send the information to TaxCloud and obtain the certificate ID. After that, the state is changed to Exported and the fields are not editable anymore.  The Cancel option will cancel the certificate ID in TaxCloud, and the exemption is not valid anymore. If an error occurs during Export or Cancel, an error message will be logged in Chatter.

The smart button “Invoices” lists all the Invoices associated with the Exemptions.

Invoices

At the time of posting, TaxCloud rates are used on an invoice or credit note if the proper fiscal position is selected, by default it is named "Automatic Tax Mapping (TaxCloud)”.

An exemption associated with the Delivery Address or its parent Company will be automatically applied to the invoice if valid at the time of the posting. The validity of the exemption will be checked based on the Invoice Date. A  message “Exemption is applied” appears on the header.

The Exemption applied is shown under the Other Info tab. The Don't Apply Exemption Boolean can be used if the exemption does not need to be applied.

If a Credit Note is created from an invoice, it will use the Exemption from the Invoice, regardless of the exemption's validity at that time.

Document Version: 1.0

Credits

Contributors

For additional information or inquiries regarding TaxCloud, feel free to reach out to us at

Sodexis <📧taxcloud@sodexis.com> or visit our website at <🌐sodexis.com/taxcloud>

This module is maintained by Sodexis.