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Avalara Help Center

Use Custom Tax Codes

This article applies to:Avalara AvaTax

Tax codes allow AvaTax to process transactionsHoverTT.png according to the taxing policy of a company. Once you create a custom tax code, you need to create a custom tax rule.

Add a custom tax code

If you can't find an AvaTax System Tax Code for your product, add custom tax codesHoverTT.png to group like kinds of products, services, or charges together. Any tax code added is a custom tax code.

  1. On the Organization tab, click the Custom Tax Codes button Picture of the Tax Codes button for a company.

    AvaTaxCalc-Organization-TaxProfile-SelectTaxCodes.png
  2. On the Tax Codes screen, click New.
    AvaTaxCalc-Organization-TaxProfile-ClickNewTaxCode.png
  3. On the New: Tax Code screen, complete the required fields:
    • Tax Code
    • Type
  4. Optionally, type a Description of the tax code.

    AvaTaxCalc-Organization-TaxProfile-CompleteTaxCodeFields.png

  5. Click Save.
  6. The custom tax code appears on the Tax Code List. A message indicating "the operation completed successfully" displays above the tax code list. The next step is to add a custom tax rule for the tax code.

Map items to custom tax codes

The tax code picker lets you filter and map your items to AvaTax System tax codesHoverTT.png or custom tax codes from the Tax Code Picker dialog from within AvaTax. It's easiest to map your item to a tax code when you add the item to the Admin Console. If you didn't map the item during this process, follow these steps:

  1. In the Admin Console, click the Organization tab, and then click the Items button Picture of the Items button for a company.
    01_AvaTaxCalc-Organization-TaxProfile-SelectItems.png
  2. On the Items screen, select the item you want to map.
  3. Click the Browse button Picture of Browse button next to the Tax Code field. The Tax Code Picker is available when creating tax rulesHoverTT.png or items.
    AvaTaxCalc-Organization-TaxProfile-ClickItemTaxCodePicker.png
  4. In the Tax Code Picker dialog, create a tax code filter by entering data for any or all of the following:
    • Tax Code
    • Description
    • Type
    • Category
      TaxCodePickerFields.png
  5. Click the Search button to run the filter.
  6. In the filter results, click the Expand button Picture of the expand button next to each group of tax codes. Tax codes appearing in red are the result of filtering.
    TaxCodePickerSearchResults.png
  7. Click a Tax Code to select it and close the Tax Code Picker dialog.

Delete a tax code

A tax codeHoverTT.png cannot be deleted if it is in use. For example, if an item is mapped to the tax code or if AvaTax processed a transactionHoverTT.png using the tax code.

  1. On the Organization tab, click the Custom Tax Codes button for a company.
  2. On the Tax Codes screen, select the check box next to one or more tax codes.
  3. Click Delete.
  4. Click OK to confirm deletion.