Avalara calculates taxation based on ship-from and ship-to addresses through the use of the Destination Contact and Service Location fields.
See below for the order of precedence that Avalara follows for determining a location as the tax location.
Determining Avalara Tax Locations
Overview
Determining Avalara Tax Locations
Ship-from (OriginCode) Address Order of Precedence:
The first address found for an invoice line item, based on the order of precedence listed below, is passed to Avalara as the ship-from address for that line item:
- Service location associated with the service within the plan instance or the service location associated with the item within the order (Non-Subscription Offering).
- Service location associated with the service defined in the product catalog (note that this does not apply to one-time orders).
- Standard service location defined as the ship-from address in the tax configuration for that client (based on the corresponding Tax Service Group).
Ship-to (DestinationCode) Address Order of Precedence:
The first address found for an invoice line item, based on the order of precedence listed below, is passed to Avalara as the ship-to address for that line item:
- Destination Contact associated with the service within the plan instance or Destination Contact associated with the item within the order (Non-Subscription Offering).
- If there is no Destination Contact, then the contact is based on the ‘Account Taxable Address To Use’ client parameter. This parameter is defined in Configuration > Billing > Taxation Settings.
Note: Refer to Account Contacts for more information on the Destination Contact.