Connect to an Avalara account for tax calculation

Connect to an Avalara account for tax calculation

IMPORTANT NOTE : This tax knowledge base article is for informational purposes only. Tax laws and rates are subject to change at any time. For specific sales tax advice regarding your business, contact a sales tax expert.
Sales Tax Calculation is available as a Boxcheck product for enabling at the Account level. To check if your account is enabled for tax calculations, go to Accounts Setup/Account Management and review the Products Used section at the top. If Sales Tax Calculation is not listed under the Compliance, please section contact support for assistance. 
 
Not every client’s business requirements and tax responsibilities are the same. To accurately calculate your applicable taxes based upon origin, destination, product type and nexus, a dedicated Avalara account is needed. Sales tax nexus is the connection between a seller and a state that requires the seller to register then collect and remit sales tax in the state. Certain business activities, including having a physical presence or reaching a certain sales threshold, may establish nexus with a state. Boxcheck has integrated with Avalara and can assist with getting your account set up if you do not already have one. Avalara maintains tax rates for each state, county and city taking into consideration laws, rules and jurisdiction boundaries.

The ability to connect to an Avalara account already setup can be found in Accounts Setup/Account Management. Scroll down to the Connect Avalara Account button.

Step 1 - Connect to Your Avalara Account
  1. Enter your Avalara Account ID.
  2. Enter your Avalara License Key.              
  3. Check Enable sandbox mode if you would like to work within your Avalara test environment. 
    IMPORTANT NOTE: Remember to uncheck this box when you go live.
  4. Click Next.

 
Step 2 - Select Which Company To Link To
  1. A list of companies associated with your account will be displayed.
  2. Select your applicable company.
  3. Click Next.

 
Step 3 - Tax Options
  1. Example default Shipping and Default Taxable codes are entered and can be overridden if desired. 
  2. Tax codes determine the taxability of the goods and services you offer to consumers. If a code is not provided, the product will default to these codes as generally taxable. Assigning tax codes at a product level are recommended and will provide a more accurate shopping cart total as well as reporting. 
  3. A full list of available codes can be found via our tax partner’s website at https://taxcode.avatax.avalara.com/ .
  4. Click Finish.

Product Type

Example Default Tax Code

Description

Wine

PA2020300 

Packaged Alcohol - Wine

Fortified Wine

PA2020302

Packaged Alcohol - Fortified Wine

Sparkling Wine

PA2020301 

Packaged Alcohol - Sparkling Wine

Non-Alcohol-Food

P0000000

Generic Taxable Product

Non-Alcohol- Merchandise

P0000000

Generic Taxable Product

Shipping

FR020100

Shipping only common carrier - fob destination

  

 
Step 4 - Enabled Confirmation
  1. Avalara AvaTax will now show as enabled within your Account Management page.
  2. If any updates are needed, click the Update Connection button.