Apply tax codes to manage item taxability. Assigning product and product categories to items gives you important jurisdictional subtlety in taxability. Avalara has predefined system tax codes with a taxability profile in place for all US states. Or, create your own custom tax codes and in the Admin Console. Keep in mind that Avalara updates system tax codes when taxability rules change, but custom tax codes and rules are maintained by you; they're not updated when tax laws change. Also, make sure you enable nexus in the jurisdictions where you're required to register and collect tax so AvaTax calculates the full tax amount.
Map items to tax codes
Before you map your product to a tax code in AvaTax for Accounting Seed for Salesforce, ensure that the Enable Tax Code Mapping is enabled in the AvaTax Settings page. To map a product to a tax code, follow these steps:
- Go to Products and click on the product you want to map to a tax code.
- In the Product Details page, click Edit to edit the details.
- In the Tax Code field, type the applicable tax code. This code is sent to AvaTax only if the Enable Tax Code Mapping is enabled in the AvaTax Settings page. The default tax code P0000000 is sent to AvaTax if this option is disabled.
- Click Save.