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Avalara Help Center

What You Sell

Some products and services are taxed differently in different jurisdictions. Apply Avalara tax codes to products and services you sell to help account for this varying taxability. There are a few different ways you can apply, or map, Avalara tax codes to your products and services:

  • Map items to predefined Avalara tax codes; associate a code with each item you sell so AvaTax knows which tax rate to apply 
  • Map items to universal product codes (UPCs)

Items that aren't mapped to Avalara tax codes are treated as Tangible Personal Property (TPP), and are fully taxed during calculation.

The process is simple. Map items to Avalara tax codes, and when your accounting software processes transactions or when you upload the transactions to AvaTax, AvaTax determines the taxability for the items you sell based on the rules behind these Avalara tax codes.

Avalara recommends you map items to Avalara tax codes in your accounting software. To learn how to map Avalara tax codes in your accounting software, check your accounting software documentation. See our handy chart for a little guidance deciding whether you should map items to Avalara tax codes in your accounting software or in AvaTax.

Keep in mind that Avalara updates Avalara tax codes when taxability rules and laws change, but you have to maintain your own custom Avalara tax codes and rules; these aren't automatically updated when changes occur. To be sure you're using the most current rules to tax your products and services, use Avalara tax codes. If you map your items to UPCs (universal product codes), you don't need to use Avalara tax codes because UPCs already have taxability rules associated with them.

If you map in your accounting software and in AvaTax, the mapping in AvaTax overrides any mapping in your accounting software.

 

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Map items to tax class

Assign a tax class to an item to indicate whether it is taxable or not in Sage Sales Tax for Sage 100 Powered by AvaTax. You can set it to apply every time an item uses Sage 100 item taxability via the Tax Class field associated with your items.

Assigning a tax class of TX to an item indicates that it is taxable, and assigning a tax class of NT indicates that it is nontaxable. Follow these steps so that it applies every time an item is sold:

  1. Go to Inventory Management > Main > Inventory Maintenance. Click the Magnifying Glass and select the desired item.
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  2. In the Inventory Maintenance dialog, click the Options tab.
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  3. Next to Tax Class, click the Magnifying Glass.
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  4. In the Sales Tax Class Maintenance dialogue, click the appropriate Tax Class for that item and click Accept.
    • The change is displayed in Options tab.

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