Avalara AvaTax

StoreConnect supports calculating taxes using your Avalara AvaTax account. Avalara AvaTax is a cloud-based solution automating transaction tax calculations and the tax filing process. Avalara provides real-time tax calculation using tax content from more than 12,000 US taxing jurisdictions and over 200 countries, ensuring your transaction tax is calculated based on the most current tax rules.

Create an Avalara account

This feature requires an Avalara account. Sign up with Avalara if you don’t already have an account.

Connect StoreConnect to AvaTax

To connect StoreConnect to your Avalara account, create a Tax Provider record on your Store:

1. Search for the record type Tax Providers and select New.
2. Choose Avalara from the Provider list.
3. Configure the Tax Provider details as follows:
   • Active: when checked, Avalara will be used to calculate taxes. Uncheck to disable Avalara and use the built-in StoreConnect tax calculation.
   • Company Code: this is an Avalara code to identify the Company you are configuring. If not supplied, uses the default code set in Avalara.
   • Default Freight Tax Code: the AvaTax System Tax Code applied to the shipping line on every order. Refer to the AvaTax tax code catalogue for the correct code.
   • Block Transactions When Offline: If AvaTax is unavailable, should transactions be blocked? If unchecked, transactions will be allowed and taxes will fall back to your store’s local tax configuration (or zero if no local taxes are set up). If checked, transactions will be blocked and an error message will be displayed to the user.
   • Block Transactions Markdown: This is the error message displayed to the user when transactions are blocked due to AvaTax being unavailable.
   • Channels: select which sales channels this tax provider applies to — Web, POS, or both. Channels is required. A provider set to Web only will not calculate taxes on POS transactions (and vice versa). Select both if you want AvaTax to apply to all channels.
4. Enter the API Info:
   • API Mode: controls which AvaTax endpoint is used. Enter production (exact value, case-sensitive) to connect to the live AvaTax service. Enter sandbox or leave blank to use the AvaTax sandbox endpoint for testing.
   • API Key: this is your Avalara Account Number
   • API Secret: this is the License Key for your Avalara account
5. Enter a fallback address. This is used if a product has no stock location, a product has no stock locations matching the tax provider’s country, a product stock location address is incomplete.
6. Add any advanced configuration options in the Configuration Options field. (See details below)
7. Save the record.

Shipping tax

Shipping tax is controlled by the Tax Provider’s Default Freight Tax Code, not by the Tax Code field on the StoreConnect Shipping product record. Any value set on the Shipping product’s Tax Code is ignored.

Advanced configuration options

These options only need to be set if you intend to override the default value. They should be on their own line and should follow a YAML format: “{option_name}: {option value}”. Here are the available options:

Option Name	Expected Value	Default Value	Setting Effect
commit_transactions	true or false	false	If true commits all transactions in Avalara. Not applicable when disable_invoices is true
disable_invoices	true or false	false	If true, does not create transactions in Avalara for invoices
log_requests	true or false	false	If true, turns logging on. All API requests and responses will be logged in the Tax Provider Log object
log_limit	integer	1000	Sets the number of rows to keep in the log. When the log reaches the limit, the oldest rows will be deleted

Test and sandbox credentials

Use sandbox (or leave the field blank) while testing, then change the value to production when you are ready to go live. The value production must be entered exactly as shown — it is case-sensitive.

Assign a tax exempt category on the Account record

Use Tax Entity Code on the Account record to assign an Avalara tax exempt category to an existing customer. Select one of the options from the picklist.

Assign a tax code on the Product record

Use Tax Code on a Product record to assign an AvaTax System Tax Code to a Product. Any tax code you assign will be passed through to AvaTax for tax calculation. If you do not assign a tax code, AvaTax’s default tax code will be used. To see a listing of all available AvaTax System tax codes, visit taxcode.avatax.avalara.com.

Set the tax method on a Price Book

When Avalara calculates tax, it needs to know whether your prices already include tax or whether tax should be added on top. This is controlled by the Tax Method field on a Price Book or Price Book Entry.

• Inclusive — your prices already include tax; Avalara will back-calculate the tax portion.
• Exclusive — your prices do not include tax; Avalara will add tax on top.

If neither the Price Book Entry nor the Price Book has a Tax Method set, Avalara treats prices as exclusive by default (tax added on top). For stores that display or charge tax-inclusive prices, leaving this field blank will cause incorrect order totals.

The resolution order is:

1. Tax Method on the Price Book Entry (most specific — overrides the Price Book).
2. Tax Method on the Price Book (applies to all entries that don’t have their own override).
3. If neither is set, prices are treated as tax-exclusive.

Note: The Tax Zone field on a Price Book is not used by Avalara. Avalara determines tax jurisdiction from the ship-from and ship-to addresses on the order, not from zones. Leave Tax Zone blank when using Avalara as your tax provider.

Set a product code on the Shipping Product record

StoreConnect has a dedicated ‘shipping’ product that is assigned to Shipping line items - SHIP001. This is the product code sent to AvaTax to identify the line; it is separate from the tax code applied to the shipping line.

Test the connection

Once you have configured your store to use Avalara, you can test the connection to ensure everything is working properly. Use the Test button in the Connectivity panel on the Tax Provider record page. If the connection is successful, you will see a message indicating the connection was successful. If the connection is not successful, you will see an error message indicating the problem.

Troubleshooting the tax provider

AvaTax won’t work without these set in the provider record:

• API Key and API Secret — authentication, no fallback
• API Mode — determines the endpoint called sandbox or production. These have to be entered exactly to work as intended.
• Active checkbox — AvaTax is bypassed entirely if unchecked

Shipping line is still being taxed after setting a Tax Code on the StoreConnect Shipping product

Shipping tax is sourced from the Default Freight Tax Code field on the Tax Provider record, not the Tax Code field on the StoreConnect Shipping product. The Tax Code on the Shipping product is not consulted for the shipping line. To change shipping tax behavior; for example, to make shipping non-taxable, or to apply a specific freight tax code, set the appropriate AvaTax code on the Tax Provider’s Default Freight Tax Code field, then re-test checkout.