ediverse

Type to search across standards, messages, tools and glossary.

ediverse Explore the platform

Spotlight PEPPOL BIS Billing 3.0 The EU e-invoicing mandate is here — France Sept 2026, Belgium Jan 2026, Germany 2025.

— 01

Foundations

— 02

Standards

— 03

Flagship messages

— 04

Tools

X12 283 — Tax or Fee Exemption Certification

The 283 transmits a tax or fee exemption certification — for an exempt organization (501(c)(3), government, schools) — to a payer or supplier.

Purpose

The 283 documents a tax exemption certification between a holding organization and a payer (insurer, vendor, government agency): exemption type, jurisdiction, validity period, certificate number. It allows avoiding tax collection on exempt transactions.

It is typical in B2B purchases with exempt entities: a nonprofit sends a 283 to its supplier so that no sales tax is added to invoices. Acknowledged by 997.

Envelope structure

The 283 travels within the three X12 envelope levels (ISA/IEA, GS/GE with functional group CE, and ST/SE). Didactic example in release 004010:

x12 example-283.x12 
ISA*00*          *00*          *ZZ*EXEMPTORG     *ZZ*VENDORCO       *260514*2000*U*00401*000000283*0*P*>~
GS*CE*EXEMPTORG*VENDORCO*20260514*2000*1*X*004010~
ST*283*0001~
BGN*00*CE-2026-0042*20260514~
N1*EM*ACME NONPROFIT INC*24*EIN-12-3456789~
N1*PR*STATE OF TEXAS*24*EIN-TXSTATE~
REF*ZZ*EXEMPT-CERT-NUMBER-501C3-9911~
REF*ZZ*EXEMPTION-TYPE-501C3-CHARITABLE~
DTM*RT*20260101~
DTM*RT*20281231~
SE*8*0001~
GE*1*1~
IEA*1*000000283~

Common segments

  • Header — ST, BGN.
  • Parties — N1*EM (Exempt entity), N1*PR (Issuing Authority — state, IRS).
  • Certification — REF*ZZ (certificate number), REF*ZZ (exemption type: 501(c)(3), government, reseller, manufacturing).
  • Validity — DTM*RT (validity period).
  • Summary — SE.

Common pitfalls

  • State vs federal: 501(c)(3) federal status does not automatically exempt from state sales tax — each state issues its own certificates; a federal-only 283 does not cover TX, NY, CA.
  • Reseller certificate: a reseller certificate exempts sales tax on purchase but requires collection on resale; misuse = audit risk.
  • Expiration: certificates have validity windows (typically 2-3 years in TX, 4 in CA); an expired 283 exposes the vendor to back-taxes on audit.

Documentation

The code 283 and the name Tax or Fee Exemption Certification are public and listed on x12.org/products/transaction-sets. The complete structure of loops, qualifiers and code lists is distributed by DISA via the proprietary Implementation Guides (TR3). ediverse.io covers only public concepts, the envelope and didactic examples.