Use the tax calculator in AvaTax Update to:
- Find tax rates. The calculator's results are based on your unique tax profile, including custom rules you've set up. Because so many factors can impact tax rates, using the tax calculator is a great way to get an accurate rate.
- . Making sure the addresses you use for yourself and your customers are entered in a way that's valid for tax calculations helps ensure accurate taxes. Plus, validating a customer address helps ensure you're shipping your products to the right place.
- Test tax scenarios such as custom tax codes and tax rules. If you're contemplating changes to your business, trying to figure out how tax codes and rules might impact your bottom line, or otherwise exploring how changing the variables involved in your taxes will change the taxes themselves, use the calculator to see what happens before you make any changes. You can also backdate your test scenarios to see a historic rate (based on the actual state of where you collected tax, your tax rules, and rates on that date).
Go to Transactions >Tax Calculator to use the tax calculator.
Enter the information in the tax calculator the same way you would on a transaction, including addresses and line items. Tax amounts, tax rates, and jurisdiction names for each line item are displayed under Tax Detail after you click Calculate. This information isn't saved.