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Keep Your Changing Business in Compliance

This article applies to:Avalara AvaTax Update

Everyday business activities can impact sales and use tax compliance. Review these common triggers to keep your changing business compliant.

Trigger How to be ready What to do
Your business grows and changes Learn to manage compliance risks.
Receive a rate change notice Review the maintenance guide once a month to stay up to date on tax code and rate changes.

Breathe. Take time to understand the intent of the notice. You don't need to submit rate changes, return schedule adjustments, and other informational notices to Avalara, but you may need to make changes in AvaTax Update. If the notice is about a rate change, you may need to update your custom tax rules.

For more information, read manage tax notices.

Receive a notice to change your filing frequency Before the first filing of the new year, review your filing frequency selections.

To change your filing frequency, edit your returns schedule prior to the end of the shortest filing period involved. 

You may need to collect and remit tax in a new jurisdiction if you...

  • Sell remotely through websites or catalogs
  • Use drop shippers or third-party distributors
  • Expand to more locations or add new products
  • Have warehouses in multiple locations
  • Sell to resellers 
  • Employ remote staff
  • Participate in trade shows
  • Sell through marketplaces
  • Use third-party fulfillment vendors or networks
Before the first filing of the new year, review where you have told AvaTax Update that you collect and remit tax.
  • Add new regions in AvaTax Update for where your company collects and remits tax. If you have sales in jurisdictions you have not selected in AvaTax Update, the tax calculation returns no tax. Your company's jurisdictions are initially added when you configure your company's profile.
  • Edit your company settings in AvaTax Update to change where your company collects and remits tax.
  • If you use Returns, after you change your jurisdiction selection a new return form is automatically added for the new jurisdiction, which you need to verify in Returns.
Add new goods or services with special taxability Review the maintenance guide once a month to stay up-to-date on Avalara tax code and rate changes.

There are a few ways to apply product-specific tax calculation to your goods and services. Learn more in what you sell.

Add an exempt customer Perform a self-audit each month of your exempt customers and exemption certificates. 

Ensure you have a valid exemption certificate on file for the new customer. If you use CertCapture, add the customer to CertCapture and request an exemption certificate. If you already have the exemption certificate, upload and validate the certificate. 

For more information about managing your exempt customers and their exemption certificates, read how to audit your exemption records.

Add a company Before the first filing for a new company, ensure your company information is up-to-date.

Add a company in AvaTax Update.

Add a location Before using a new location in transactions or filing location-based returns, ensure that all location information is up-to-date. Add a new location code to your company in AvaTax Update.
Add an employee Before the first filing of the new year, ensure your employee information is up-to-date.

Create a user profile in AvaTax Update. Get new employees up to speed quickly by sharing this article:

Remove an employee Before the first filing of the new year, ensure your employee information is up-to-date. Deactivate the user profile in AvaTax Update.
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