Manage item taxability by creating a tax class and mapping it to an item in AvaTax for Magento 1. By associating your items with tax codes, you can manage item taxability by product or product category, and allow for jurisdictional subtlety in taxability. Avalara provides predefined system tax codes, which already have a taxability profile in place for all US states. Alternatively, create tax codes in NetSuite or create your own custom tax codes andin the Admin Console. Keep in mind that Avalara automatically updates system tax codes when taxability rules change in various jurisdictions, but custom tax codes and rules are user-maintained; they're not automatically updated when tax laws change.
Map items to tax codes
A tax code is a unique code for similar products, services, or charges that tells AvaTax what kind of sales tax, if any, to charge for them. To learn more about tax codes and how to use them, read what is a tax code?