Tax codes categorize items to determine their taxability (i.e. whether or not they're taxable) by jurisdiction. If a suitable Avalara tax code isn't available, use custom tax codes. Custom tax codes are, by default, fully taxable everywhere. You must add a custom tax rule to define the taxability of a particular code in a unique jurisdiction.
Add a custom tax code
Go to Settings > Manage advanced company settings > Manage custom tax codes to create a custom tax code. You can also download the Avalara tax code list to see if Avalara already has the tax code you need.
If you can't find an Avalara tax code for your product, add customto group like kinds of products, services, digital goods, or charges together. Any tax code you create is considered a custom tax code.
Custom tax codes are, by default, fully taxable everywhere. You must add a custom tax rule to define the taxability of a particular code in a unique jurisdiction.
Map items to custom tax codes
You'll map your items toor custom tax codes under Settings > Manage items with special tax treatment. It's easy to map your item to a tax code when you add the item to AvaTax Update.
Delete a tax code
You can't delete aif it's in use. For example, you can't delete it if an item is mapped to the tax code or if AvaTax Update has processed a