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Map Items to Tax Codes

This article applies to:Avalara AvaTax

In AvaTax Update, tax codes manage and lend important jurisdictional subtlety to item taxability. Avalara has predefined Avalara tax code with a taxability profile in place for all US states, and you can also create your own custom tax codes and tax rulesHoverTT.png. Mapping items to tax codes tells AvaTax Update which tax rules to use when processing transactions. 

  • A tax code is a unique code for similar products, services, or charges that tells AvaTax Update what kind of sales tax, if any, to charge for them.
  • It's a best practice to map items to tax codes in your accounting software. Find your integration to learn how.
  • If you can't pass a tax code from the item management screen, or if you need a remotely-hosted mapping system to accommodate multiple integrations, map the items to tax codes in AvaTax Update.
  • Item mapping in AvaTax Update overrides any mapping in your accounting software.
  • Avalara updates taxability rules when they change, but not custom tax codes and rules.
How Do I Map Tax Codes - Final.png

Map items in AvaTax Update

To map a single item:

  1. In AvaTax Update, click Settings. Then, under What you sell, click Manage items with special tax treatment.
  2. Click Add an item.
  3. Enter an item code and description. Then select the tax code that best fits the item. You'll see a list of codes when you start typing.
  4. Click Save.

To import a list of items:

  1. In AvaTax Update, click Settings. Then, under What you sell, click Manage items with special tax treatment.
  2. Click Import items.
  3. Download the item import toolkit (a template for importing items) and the Avalara tax code list. Both are .xls files. 
  4. Open the item import toolkit and add items:
    • In the Item column, enter the item's code.
    • In the ItemDescription column, enter a description.
    • In the TaxCode column, enter the Avalara tax code to which you want to map the item. 

    When you're done, save the file.

  5. On the Import Items page in AvaTax Update, drag and drop the .xls file to upload it, or click Browse instead and select it from the list.
  6. After the file uploads, the items are added to the table on the What You Sell page for your company.

To map multiple items to the same tax code: 

  1. On the What You Sell page, click the check boxes by each item you want to map. Then click Assign a tax code to selected items.
  2. Enter the code in the Tax Code field. Under Find and select a tax code, you can search for tax codes by category.
  3. Click Save

Map items in your accounting software

It's a best practice to map items to tax codes in your accounting software. Find your integration to learn how to map tax codes in your accounting software.

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