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Understand tax exemptions

Regardless of the business model you have chosen, Cleverbridge provides a tax exemption workflow for eligible US customers. Exemptions can be handled through a self-service application during checkout or through a manually managed process.

Self-service application for tax exemption​

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If you use the cSP model, you are responsible for managing tax exemptions unless your agreement with Cleverbridge specifies otherwise.

When a customer requests a tax exemption for an initial purchase, they complete an online form during checkout. The following process applies:

  1. A payment processing specialist reviews the submitted tax exemption document and verifies the request.
  2. If the request is valid, the document is recorded as Valid in the Cleverbridge platform.
  3. A payment processing specialist emails the valid tax exemption document ID to the customer.
  4. The customer completes the purchase without paying sales tax for the transaction.
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Under the MoR model, after a tax exemption document is marked as Valid, the Cleverbridge platform stores its ID for future transactions. The customer can enter the valid tax exemption ID during checkout to apply the exemption to subsequent eligible purchases.

Manual tax exemption management​

A customer can also request a tax exemption by email before completing checkout. A Cleverbridge payment processing specialist uploads and reviews the tax exemption document in SCM.

  1. A payment processing specialist reviews the uploaded document and validates the request.
  2. If the document cannot be validated, the customer is asked to submit a valid document by email.
  3. If the request is validated:
    • The customer does not pay sales tax when the valid request was submitted before the transaction was completed.
    • The customer receives a refund for the collected sales tax when the valid request was submitted after the transaction was completed.

Payment processing specialists can assign and manage exemption requests and create or update uploaded exemption documents. For details about the SCM dashboard, see Manage tax exemption documents.

Configuring Avalara AvaTax​

For cSP tax calculation and reporting workflows, see Configure Avalara AvaTax.


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