Apply tax codes to manage item taxability. Assigning product and product categories to items gives you important jurisdictional subtlety in taxability. Avalara has predefined Avalara tax code with a taxability profile in place for all US states. Or, create your own custom tax codes and in AvaTax. Keep in mind that Avalara updates Avalara tax code 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
- In AvaTax for Sage 50, click Configuration.
- On the Tax Code tab, in the Tax Code table, double-click the Item ID that you want to map.
- In the Item Tax Code window, double-click the appropriate code and click OK.
- Click Synchronize with Peachtree to populate your shipping methods and Item IDs.
- Click OK.