New Direct Pay Product Exemption

The Direct Pay location remits all sales tax directly to the tax authority rather than sending the tax to the supplier. By creating a Direct Pay Product Exemption, products are exempt from the Direct Pay tax payment method. Therefore, the taxes must be sent to the supplier regardless of any Direct Pay status of the location.

To manage exemptions to direct tax payment based on types of item:

1. In the Tree Menu, click Setup | Taxes | Direct Pay Product Exemption.

The Advanced Administration Application displays the Direct Pay Product Exemptions form.

2. Click [New Exemption].

The Advanced Administration Application displays the New Direct Pay Product Exemption form.

3. In the State text box, click on a code, representing a state, group of states or nations for which an exemption should apply.

Note: The application comes pre-populated with a number of common states and provinces. If your locale has additional jurisdictions, please have your database administrator add those jurisdictions to the "Tax_State_Province" table.

4. Click in the UNSPSC Code text box and type an UNSPSC code representing the type of item that is to be exempt from direct payment of tax.
5. Click:
• [Save] to save the new exemption and leave the New Direct Pay Product Exemption form, or
• [Cancel] to leave the New Direct Pay Product Exemption form without making any changes.