Avalara AvaTax
Configure Avalara AvaTax as a tax service from Settings > Taxes
Overview
Avalara AvaTax can be used as a tax service for regions in your store that should rely on Avalara's calculation engine. It is configured from Settings > Taxes, not from an app installer. Any tax region assigned to AvaTax will use the settings on this page.
Avalara allows you to collect sales tax on your orders and track the collected tax amounts in your Avalara account. NEXT Tax Reports continue to show the sales tax data for your store.
An Avalara account is required to use AvaTax.
Setting Up AvaTax
Navigate to Settings > Taxes, choose Avalara in the Tax Services list, and select Settings.
Enable AvaTax to calculate taxes for the regions you assign to it.
Input your account credentials in the AvaTax settings:
- Account/Username
Your AvaTax account number - Key/Password
Your AvaTax license key. - Environment
Select your AvaTax environment, Sandbox (for testing purposes) or Production (for Live mode). Be sure to use the appropriate account credentials for the selected environment. - Enable Logging
Enable logging to maintain and access logs for debugging purposes. It is recommended to leave this disabled, and only enable it if you are having technical issues with AvaTax in your store. - Commit Transaction
Submitting transactions as “Committed” at the time an order will send them to AvaTax and they will not be editable later. Disable this setting to leave transactions as “Uncommitted” in AvaTax, requiring manual review and commitment in your AvaTax account. - Company Code
The company or organization from your AvaTax account to which you want to connect your store. - Default Product Tax Code
The default AvaTax Product Tax code to use for your products. This code will be assigned when a more specific Tax Code is not set. - Default Shipping Tax Code
Your default shipping tax code, to be applied to all shipping methods in your store. - Default Currency
Your AvaTax account's default currency.
Setting Up Tax Codes
To assign tax codes to your products, first navigate to your Catalogue and choose a Product. If you don't assign a Tax Code to a product, the Default Product Tax Code configured above will be applied.
Assigning Tax Codes to Products
On the Product Details tab, enter the Tax Code corresponding to the product. To determine the appropriate Tax Code for a given product, consult AvaTax's tax codes reference. A Tax Code applied to a Product will also apply to any of its Variants.
Assigning Tax Codes to Categories
From the Catalogue > Categories view you can choose a Category and assign a Tax Code to cover all the Products within it.
If a Product has a different Tax Code than the Category that is associated to it, the Product's Tax Code will take precedence.
Handling Refunded Orders
Next Commerce automatically syncs refunds applied against orders back to AvaTax. When a refund is processed on an order for which tax was collected, a Return Invoice is created to reverse the collected tax amounts in AvaTax.
Tax Reports
To view a summary in the Dashboard of sales tax collected, use Tax Reports. These reports display the sales taxes collected on your store's orders whether you are using built-in NEXT Tax, AvaTax, or another supported tax service.