Using the plugin with Avalara AvaTax
Updated September 14, 2026
The PRO version integrates with Avalara AvaTax, so exempt customers are passed to AvaTax with an exemption reason rather than having tax stripped after the fact. An AvaTax tab appears in Tax Exemption › Settings whenever the WooCommerce AvaTax plugin is active.
Turning it on
Tick Enable AvaTax Integration. Enabling it changes several other settings, which the tab warns you about up front:
- A new Exemption Type field is added to the My Account exemption form.
- Remove Tax on Shipping, Settings on My Account Page and Hide Fields On Checkout become required and are enabled automatically.
- The integration is compatible with Require Manual Approval, so you can still review each claim.
Because fields are hidden at checkout, customers set up their exemption on their My Account page first and then simply tick the box when ordering.
Exemption types
The Exemption Type dropdown maps to AvaTax’s entity use codes, so the customer tells you why they are exempt in terms AvaTax understands. The options include federal, state and tribal government, foreign diplomat, charitable or benevolent organisation, religious organisation and the other standard Avalara categories, plus a “No exemption” default.
The chosen code is stored against the customer and sent with their orders. Where manual approval is in use, a pending selection is held separately from the approved one, so a customer changing their exemption type does not take effect until you have approved it.
The label on this field can be reworded with the Exemption Type setting on the Custom Text tab.
Where it appears
The exemption type shows on the customer’s My Account page, on their user profile, on the Exempt Customers page and in the Tax Exemption meta box on the order edit screen.