Sales tax can be confusing, but AvaTax can alleviate a lot of that worry by automating the process. In order to get the most out of your AvaTax implementation, the settings below are important to implement properly from the start. The Avalara Help Center is also a great resource to use for reference (https://help.avalara.com/).
Learn more about the impact of COVID19 and new sales tax legislation in the June 17th webinar The Five Steps to Managing Sales Tax with Exemptions
Important AvaTax Settings:
- Where you Collect Tax – These are your Nexus States, any state where you are required to collect and remit sales tax. It is important to have these set up in AvaTax from the start. If a state is not defined in AvaTax, tax will not be calculated.
- Company Location – These are any physical Nexus locations for your business.
- User Roles:
- Account Administrator
- Access to all companies and settings within an account.
- Company Administrator
- Access to the specified company assigned, but does not have access to Account Level settings.
- Account Administrator
AvaTax Data Needed for Implementations
- AvaTax Account ID
- This is an ID specific to your AvaTax account. If an AvaTax Sandbox Account is being used, a separate Account ID will be provided. Multiple AvaTax companies can be setup within an AvaTax account. Multiple companies are setup when there are multiple tax filing entities/companies under one account.
- AvaTax Company Code
- If you have multiple companies set up within the ERP platform you are connecting to AvaTax, this code allows you to specifically link one to AvaTax. Multiple companies can be set up within an AvaTax account, if desired. An AvaTax Company Code can be updated to match a company code specified within your ERP platform if there is one already defined.
- The AvaTax Company Code can be found in Settings > All AvaTax settings, and can be modified as needed.
- License Key
- This is specific to the AvaTax account, and only needs generated once. The same license key can be used to link multiple systems to AvaTax.
- Occasionally Username and Password for an Account Administrator is used as well. Sage Intacct is a good example of an integration that utilizes this information for connecting to AvaTax.
Avalara Help Center Information/FAQs
- Avalara Help Center has the following page to search your business application for installation instructions/assistance (https://help.avalara.com/FYHP).
- Sage Intacct and Sage X3 connectors are supported and maintained by Sage.
- Sage Intacct
- Sage 500
- Sage 100
THE FIVE STEPS TO MANAGING SALES TAX WITH EXEMPTIONS
Understanding the ins and outs of sales tax compliance can be tricky for even the savviest business, but getting it right is crucial for success. Knowing where you need to collect tax, collecting the correct amounts, and properly documenting exempt sales are all key stages of the sales tax process. However, some steps get overlooked or handled incorrectly, leaving businesses exposed to potential penalties and fees in the case of an audit.
In this presentation, we will review the five steps to managing sales tax and specific challenges that can plague exempt sellers. We will cover:
- Typical steps businesses should consider for sales tax compliance
- Impact of COVID19 and new sales tax legislation
- Tools to help you navigate the five steps