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Install and Configure Avalara AvaTax for Stripe Invoicing

This article applies to:Avalara AvaTax for Stripe Invoicing

After you activate AvaTax Update and set up your company profile, install and configure AvaTax Update for your accounting software. During configuration, customize your setup to fit your unique business needs for things like:

  • Tax calculation settings for various tax types
  • Exemption settings if you have exempt customers
  • Product taxability settings

Alter these settings when your business needs change.

Register

To register AvaTax Update for Stripe Invoicing:

  1. Go to the AvaTax Update for Stripe Invoicing website.
  2. On the Log in page, do one of the following:  
    • To log in to your existing AvaTax Update for Stripe Invoicing account, enter your username and password, and then click Sign in.
    • To register for a new AvaTax Update for Stripe Invoicing account: 
      1. Click Register.
      2. On the Create new AvaTax for Stripe Account page, create a  username and password, enter your email in the Email Id, and then click Register
      3. Click Connect To Stripe.
      4. Click Sign in with Stripe to connect.
      5. On the Stripe Invoicing Log in page, type your Stripe Invoicing credentials, and then click Sign in to integrate your AvaTax Update for Stripe Invoicing account with your Stripe Invoicing account. 
  3. To connect to AvaTax Update:
    1. Enter your AvaTax Update account credentials (the same credentials you used to activate AvaTax Update), and click Link to my Avalara Account
    2. On the Company Profile page, click Setup Profile. The Address State you select is set as your nexus jurisdiction.

Configure

To configure AvaTax Update for Stripe Invoicing:

  1. Go to the Avalara AvaTax for Stripe Invoicing website.
  2. Enter your AvaTax Update credentials and click Sign in.
  3. On the AvaTax Update Welcome page, click AvaTax Update Setup to setup AvaTax Update for Stripe Invoicing. The AvaTax Update Setup page opens.
  4. To edit your AvaTax Update account details and configuration, click Edit Configuration, fill in the following, and then click Save Configuration
    Field Action
    Avalara Environment Select the type of AvaTax Update account you're configuring.
    • Avalara Account ID
    • Avalara License Key
    • User Name
    • Password
    Fill in using the information Avalara emailed to you when you set up your AvaTax Update account, and then click Validate Account to validate your AvaTax Update credentials.
    Avalara Company

    Select the company for your AvaTax Update account. After you save the configuration, Linked AvaTax Update Company displays the company code.

    This field displays only if your AvaTax Update credentials are valid. 

    Is Tax inclusive in the Invoice Amount? Select Yes if you want the invoice amount to include sales tax. Select No if you want only the invoice amount.
    Optional: AvaTax Update Line Text in Invoice Enter text to display on the invoice tax line for AvaTax Update.
    Optional: Supported text in Charge description Enter text to display on the charge description for AvaTax Update.
    Calculate AvaTax Update on Select either or both the options. To calculate tax on charges, select Charge. To calculate tax on invoices, select Invoice.
    Tax On Invoices

    Choose a type of invoice for calculating tax:

    • Recurring: Tax is applied on recurring invoices.
    • Normal: Tax is applied on normal invoices.
    • Metadata Flagged Invoices Only: Tax is calculated for invoices that contain Avalara standard metadata.

    See the next table for more details about each type.

     

    Tax on invoices Expected response
    Recurring Normal Metadata flagged invoices only
    cross.png cross.png cross.png
    • Error notification
    • No tax calculation
    cross.png cross.png tick.jpg
    • Tax calculation strictly based on metadata
    • Optional metadata settings are referred from metadata only (and not account setup)
    cross.png tick.jpg tick.jpg
    • Tax calculated on normal (non-recurring) invoices only
    • Tax calculation is based on metadata
    • If metadata isn't found, optional metadata settings are referred from account setup
    tick.jpg cross.png tick.jpg
    • Tax calculated for recurring invoices only
    • Tax calculation is based on metadata
    • If metadata isn't found, optional metadata settings are referred from account setup
    tick.jpg tick.jpg cross.png
    • Tax calculated for both normal and recurring invoices
    • If metadata isn't found, metadata settings are referred from account setup
    tick.jpg tick.jpg tick.jpg
    • Tax calculated for both normal and recurring invoices
    • Tax calculation is based on metadata
    • If metadata isn't found, metadata settings are referred from account setup

     

  5. On the AvaTax Update Configuration page: 
    Field Action
    Webhook link for Stripe Invoicing integration Copy this user-specific URL at the top of the dialog box, and you'll need it in a later step
    Bill-To address Fill in the origin business address, click Validate, and then click Update Config to save the validated address
  6. Go to API > Webhooks > Add Endpoint, fill in the following, and then click Add endpoint
    Field Action
    URL to be called Paste the webhook link that you copied from the AvaTax Update Configuration page
    Events to send Choose Live events for a production environment or Test events for a test environment (also known as a sandbox or development environment)
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