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Install and Configure Avalara AvaTax for Stripe Invoicing

This article applies to:Avalara AvaTax for Stripe Invoicing

Now that you've activated your AvaTax account and set up your tax profile, it's time to install and configure your integration. At the end of this process, you'll be able to start using AvaTax!

1. Register

Before you install AvaTax for Stripe Invoicing, register AvaTax for Stripe Invoicing to ensure it meets your sales tax needs. 

  1. Go to the AvaTax for Stripe Invoicing website.
  2. On the Log in page, you will either register for a new account or log in with your existing AvaTax for Stripe Invoicing account.  
    • To log in to AvaTax for Stripe Invoicing with your existing account, type your User name and Password and click Log in. You'll be directed to the AvaTax welcome page.
    • To register for AvaTax for Stripe Invoicing: 
      1. Click Register.

        Stripe 1  Register.png

      2. On the Create new AvaTax for Stripe Account page, create a User name and Password. Type your Email Id and click Register

        Stripe_2_New_accnt.png

      3. Click Connect To Stripe.

        Stripe 3 connect to stripe 1.png

      4. Click Sign in with Stripe to connect.

        Stripe 3 connect to stripe 2.png

      5. On Stripe Invoicing Log in page, type your Stripe Invoicing credentials here and click Sign in to your account to integrate AvaTax for Stripe Invoicing account with your Stripe Invoicing account. 

        Stripe 4 stripe login.png

  3. To connect to AvaTax:
    1. Enter your AvaTax account credentials and click Link to my Avalara Account

    2. On the Company page, click Setup Profile.

      Note:
      The Address State you select is set as your nexus jurisdiction.

      Stripe_new_user_company.png

This completes the setup of your AvaTax for Stripe Invoicing profile. You will now be directed to the AvaTax Setup page.

2. Configure

To configure AvaTax for Stripe Invoicing, follow these steps:

  1. Go to the Avalara AvaTax for Stripe Invoicing website.
  2. On the AvaTax for Stripe Invoicing website, type your AvaTax credentials and click Log in.
  3. On the AvaTax Welcome page, click AvaTax Setup to setup AvaTax for Stripe Invoicing.

    Stripe 5 stripe login successful.png

  4. On the AvaTax Setup page, click Edit Configuration to edit your AvaTax account details and configuration.

    Stripe 6 AvaTax setup.png

    • Avalara Environment: Select the type of AvaTax account, Production or Test.
    • Avalara Account ID, Avalara License Key, User Name, and Password: Avalara emailed this information to you when you set up your AvaTax account. Click Validate Account to validate your AvaTax credentials.
    • Avalara Company: This option is shown only if your AvaTax credentials are valid. Select the company for your AvaTax account. After you save the configuration, Linked AvaTax Company displays the company code.
    • Is Tax inclusive in the Invoice Amount?: Select Yes if you want the invoice amount to include sales tax and select No if you want only the invoice amount.
    • AvaTax Line Text in Invoice: Text entered here is displayed in the invoice tax line for AvaTax.
    • Supported text in Charge description: Text entered here is displayed in the charge description for AvaTax.
    • Calculate AvaTax on: Select either or both the options. To calculate tax on charges, select Charge.  To calculate tax on invoices, select Invoice.  
    • Tax On Invoices: You can choose different types of invoices for calculating tax:
      • Recurring: If checked, tax will be applied on recurring invoices.
      • Normal: If checked, tax will be applied on normal invoices.
      • Metadata Flagged Invoices Only: Check if you want to calculate tax for the invoices that contains Avalara standard metadata.
      Tax on Invoices Expected response
      Recurring Normal Metadata flagged invoices only
      cross.png cross.png cross.png
      • Error notification
      • No tax calculation
      cross.png cross.png tick.jpg
      • Tax calculation strictly based on metadata
      • Optional metadata settings are referred from metadata only (and not account setup)
      cross.png tick.jpg tick.jpg
      • Tax calculation is done for normal (non-recurring) invoices only
      • Tax calculation is based on metadata
      • If metadata is not found, optional metadata settings will be referred from account setup
      tick.jpg cross.png tick.jpg
      • Tax calculation is done for recurring invoices only
      • Tax calculation is based on metadata
      • If metadata is not found, optional metadata settings are referred from account setup
      tick.jpg tick.jpg cross.png
      • Tax calculation is done for both normal and recurring invoices
      • If metadata is not found, metadata settings are referred from account setup
      tick.jpg tick.jpg tick.jpg
      • Tax calculation is done for both normal and recurring invoices
      • Tax calculation is based on metadata
      • If metadata is not found, metadata settings are referred from account setup
    • Click Save Configuration.
  5. On the AvaTax Configuration page, copy the Webhook link for Stripe Invoicing integration. This is the user-specific URL at the top of the dialog box and will be used in a later step to integrate with AvaTax.
  6. On the AvaTax Configuration page, type the Bill-To address, i.e. the origin business address. To validate the address, click Validate. To save the address, click Update Config.

    Stripe 7 AvaTax Configuration.png

  7. In Stripe Invoicing, go to Your Account > Account Settings.
    Stripe 8  Dashboard.png
  8. On the Account Settings page, add a webhook:
    1. On the Webhooks screen, click + Add endpoint....
    2. On the Select an endpoint type screen, click Next.
    3. On the Add an account endpoint screen, in the URL field, paste the webhook link you copied earlier. 
    4. In the Mode field, select Live for a production environment or Test for a test environment.
    5. Click either the Send me all events option or the Select events option, depending on your preference.
    6. Click Create endpoint.
    7. Click Done.
      Stripe 9 Webhook.png
      Congratulations! You have successfully integrated AvaTax for Stripe Invoicing.