Avalara Tax Service

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Overview

This article describes how to configure the Avalara tax service.

Before You Begin

Make sure you have performed all the tasks described in Set Up Taxes.

Configuring the Avalara Tax Service

Getting Here: Click Configuration > Integrations > Taxation Configuration

Click New to set up an Avalara-specific taxation configuration.
Fill in all the required fields of a new taxation configuration (i.e. Status, Set Name, Set Description, and Countries).

For additional information, reference Create Taxation Configuration.

Note: Selected countries (in the right column) are the only countries that are included for taxing in the Avalara integration. All other countries (in the left column), are either taxed using another taxation method, or are not subject to any taxes.

Choose Avalara Tax Service from the Method drop-down.

A new form populates, specific to the Avalara configuration, with Tax Group Configuration and Tax Config Values sections to complete. Fill in all fields within these sections, detailed below, before clicking Save.

Tax Group Configuration

Complete each section within the Tax Group Configuration based on the tax groups chosen. See below for information on what input is required for each section.

Account Number: Enter the account number to link to for the tax groups listed. Note: This must be the same account number for all tax groups listed.
License Key: Enter the license key to link to for the tax groups listed. Note: This must be the same license key for all tax groups listed.
Company Code: Enter the company code to link to for the tax groups listed. Note: This must be the same company key for all tax groups listed.
Item Code: Enter the GL Code to which the taxes for the tax groups listed will be mapped. Note: This must be the same code for all tax groups listed.
Service Location: Select the associated service location for each tax group. The service location can be used to calculate tax. Refer to Determining Avalara Tax Location for more information.
Tax Code: Enter the specific Avalara tax code for each tax group listed. For example, the Avalara tax code for SaaS is SW052000 and is P0000000 for Tangible Property. Provided below is a link to a complete list of Avalara tax codes.

Avalara Tax Codes

Tax Configuration Values

Configure the Tax Configuration Values section based on the tax groups chosen. For additional information on inputs to provide for each field, see below.

Note: The Tax Config Value fields are at the client level. If any information must be passed at the account level instead, configure account supplemental fields and use the Supp Field Override field.

AvaTaxService URL: Enter the full URL to the Avalara tax service.
Calculate Tax After Credits Applied: Allowable values are as follows:
- Yes: Calculate tax based on net charges after credits or discounts have been applied to a transaction.
- No: Calculate tax based on the gross purchase amount, regardless of any subsequent credits or discounts applied to the transaction.
ExemptionNo: Any value entered in the exemption number configuration field indicates that ALL accounts are tax exempt and no accounts are taxed.

If you have individual accounts that are tax exempt, choose Tax Exemption Number from the corresponding Supp Field Override drop-down and follow the "Configuring Tax Exemption and VAT ID per Account" instructions below.

CustomerUsageType: Enter the client application customer or usage type.
PurchaseOrderNo: Enter the buyer's purchase order identifier.
BusinessIdNo: Any value entered in the BusinessIdNo configuration field indicates that ALL accounts have the same Vat ID.

If you have individual international accounts, choose VAT ID from the corresponding Supp Field Override drop-down and follow the "Configuring Tax Exemption and VAT ID per Account" instructions below.

Note: If you have any accounts that are tax exempt or international, you must set up corresponding account supplemental fields prior to your Avalara configuration (see prerequisite above). In this case, do not enter a value for the ExemptionNo or BusinessIDNo fields and use the supp field overrides.

Configuring Tax Exemption and VAT ID per Account

Getting Here: Click Accounts > Select an account > Account Overview > Client-Defined Fields

Click Edit next to the Tax Exemption Number field.
Enter a new tax exemption number for the specific account in the Field Value(s) field and click Add New or select an existing value from the list to modify and click Edit.
Click Save.

Complete the same steps for the VAT ID account field.