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Install and Configure Avalara AvaTax for QuickBooks Online

This article applies to:Avalara AvaTax for QuickBooks Online

After you activate AvaTax and set up your company profile, install and configure AvaTax for your accounting software. During configuration, customize your setup to fit your unique business needs for things like:

  • Tax calculation settings for various tax types
  • Exemption settings if you have exempt customers
  • Product taxability settings

Update these settings when your business needs change.

You must have Master Admin and Company Admin access to install and configure AvaTax for QuickBooks Online.

Activate

To activate AvaTax for QuickBooks Online:

  1. Go to the QuickBooks Online website and click Sign in, or click Sign up to create a new user.
  2. Go to Apps > All Apps, search for AvaTax, and select the app.
  3. On the AvaTax App page, click Get App Now.
  4. On the AVAQBOService page, select the name of the company you want to connect to AvaTax, and then click Authorize. After your account is authorized, the QuickBooks Online companies page displays the status of the list of companies that are integrated with AvaTax.
  5. Select the company to configure.
    • To integrate a new company with AvaTax, click Integrate. The company is now available to select and configure. 
    • To select a company that's already integrated with AvaTax, click the company name.
  6. To connect to AvaTax, continue to the Configure AvaTax for QuickBooks Online section.

Configure AvaTax for your accounting software

To connect AvaTax to QuickBooks Online and configure your account:

  1.  If you aren't continuing immediately from the Activate section:
    1. On the Connect to AvaTax for QuickBooks Online page, click Connect to QuickBooks Online.
    2. On the AVAQBOService page, select the name of the company you want to connect to AvaTax, and click Authorize. (You can only connect one company at a time to AvaTax for QuickBooks Online.)
  2. On the Company Profile page, fill in the required fields, and then click Save And Next .
  3. To pay for a one year subscription for AvaTax for QuickBooks Online, fill in your payment details, and then click Accept & Proceed.
  4. To set up your tax collection location (i.e., set up nexus) for this company, on the Nexus page, select the Location and click Enable Tax Jurisdictions.
  5. On the Success page:
    • To activate the synchronization between AvaTax and QuickBooks Online, click Active, or click Down to deactivate the synchronization.
    • Optional: To print your AvaTax account details, click Print Account Info.
    • Optional: To edit the AvaTax configuration and/or change the company details from the Manage your connection and integration page, click Review Configuration.
    • Optional: To go to QuickBooks Online, click Go to QuickBooks Online.
    • Click Log out. You don't need to be logged in to use AvaTax for QuickBooks Online.
  6. On the Manage your connection and integration, click Active to activate the synchronization between AvaTax and QuickBooks Online, and then click Log out. You don't need to be logged in to use AvaTax for QuickBooks Online.

Add AvaTax as the sales tax agency

By default, AvaTax calculates sales tax at the document-level. You can also calculate sales tax at the line-level. To enable line-level sales tax calculation:

  1. In QuickBooks Online, click Taxes > Set up sales tax.
  2. On the Sales Tax Center page, click Add/edit tax rates and agencies
  3. On the Sales Tax Rates and Agencies page, click New
  4. On the New Sales Tax Rate page, fill in the following fields with the indicated value, and then click Save
    Field Value
    • Single tax rate
    • Combined tax rate
    Select Single tax rate
    Tax name AvaTax
    Agency name Avalara
    Rate 0.00
  5. Click Return to Sales Tax Owed and Recent Payments.
  6. On the Sales Tax Rates and Agencies page, click Edit sales tax settings
  7. In the Edit Sales Tax Settings window, fill in the following fields with the indicated value, and then click Save
    Field Value
    Do you charge sales tax? Yes
    Default sales tax AvaTax
    Mark all new customers taxable Select to enable
    Mark all new products and service taxable Select to enable

In the Sales Tax Owed table, Avalara is successfully added as an agency, and you can now calculate sales tax at the line-level and exempt customers using AvaTax.