AvaTax Update address validation is a feature that verifies, corrects, and formats addresses according to the USPS database. When you validate addresses using AvaTax Update, you ensure that the address is formatted correctly so AvaTax Update calculates tax accurately. A valid address has 1-3 address lines, including a city, state, and ZIP code. At this time, AvaTax Update only validates addresses in the United States and Canada. Validating addresses may incur additional usage fees.
Here are some of the most common addresses AvaTax Update validates:
- Your company's address - When you validate your company's address, you ensure that the origin address used on most invoices is accurate for tax calculation
- Your customers' addresses - When you validate your customers' addresses, you ensure that the ship-to address used on invoices is accurate for tax calculation
- Your vendors' addresses - When you validate your vendors' addresses, you ensure that:
- Addresses used in consumer use transactions are accurate for tax calculation
- AvaTax Update verifies VAT calculation is correct for the address you provide (where applicable)
Depending on your accounting software, there are other types of addresses that AvaTax Update validates. We recommend validating all addresses for accurate tax calculation.
Validate addresses in several different ways:
- Validate many addresses at once - Most accounting software that integrates with AvaTax Update includes a utility that allows you to validate many or all of your addresses at once. We recommended this method for validating addresses.
- Validate a single address - If you only have a few addresses to validate, or if you're adding a new address and have already validated the others in your system, use your accounting software to validate the address or validate the address in AvaTax Update.
- Validate addresses during tax calculation - Validate addresses on every transaction sent to AvaTax Update. This is generally a setting in your accounting software. Avalara doesn't recommend validating during tax calculation because this could increase your usage fees significantly.