Passthrough Prohibited Taxes

Why is my transaction in CereTax reflecting a higher tax amount than the same transaction in my system?

If the same Transaction # (representative of the value in the Invoice Number field) is reflecting a higher tax amount than what the same Transaction # displays in your system, this may be a result of Passthrough Prohibited taxes.

What are Passthrough Prohibited taxes?

Passthrough Prohibited taxes are taxes that are imposed on your business but cannot be passed on to your end-customer.  As a result, the CereTax API natively excludes these taxes from the API response that is returned to your system.

How can I determine if a tax is Passthrough Prohibited?

There are a few ways to determine if a tax is Passthrough Prohibited:

Transactions Screen

1. If viewing a specific transaction in the CereTax Transactions Screen, there is a “Pass through Type” column under the Tax Details section that indicates if that tax is Required, Optional or Prohibited.
2. If this column is not visible in your screen, it may need to be added.  Please refer to our article Utilizing the Transactions Screen.

Reports

There are two reports that contain a Passthrough Type column:

1. Sales Transaction Detail Report
2. Invoice Line Detail Report

Please refer refer to our Reports Overview for guidance on how to generate a report.

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Examples of Passthrough Prohibited Taxes

As of August 1, 2025