For companies conducting business in the US, AvaTax Update assumes:
- Transactions in regions where you've told AvaTax Update you collect tax are taxable according to the taxability rules for that collection authority
- Transactions in other regions are non-taxable (and thus receive a 0.00% tax calculation)
For companies conducting business globally, the country in which the transaction takes place is the one AvaTax Update uses for tax calculation. Other factors affecting the AvaTax Update tax calculation are the type of good sold, whether that good is taxable or exempt, and whether it is sold to a business or a consumer.