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Avalara Help Center

8 Ways to Keep Your Changing Business in Compliance

Everyday business activities can impact sales and use tax compliance. Review these common triggers to keep your changing business compliant.

Trigger How to be ready What to do
Your business grows and changes Learn to manage compliance risks.
Receive a rate change notice Review the maintenance guide once a month to stay up-to-date on tax code and rate changes.

Breathe. Take time to understand the intent of the notice. You don't need to submit rate changes, filing calendar adjustments, and other informational notices to Avalara, but you may need to make changes in your Admin Console. If the notice is about a rate change, you may need to update your custom tax rules

For more information, read manage tax notices.

Receive a notice to change your filing frequency Before the first filing of the new year, review your filing frequency selections.

To change your filing frequency, edit your filing calendar prior to the end of the shortest filing period involved. For more information about filing calendar deadlines, review Returns - FAQ.

You may create sales tax nexus if you...

  • Sell remotely through websites or catalogs
  • Use drop shippers or third-party distributors
  • Expand to more locations or add new products
  • Warehouse in multiple locations
  • Sell to resellers 
  • Employ remote staff
  • Participate in trade shows
  • Sell through marketplaces
  • Use third-party fulfillment vendors or networks
Before the first filing of the new year, review your nexus selections.
  • Add nexus jurisdictions in AvaTax for where and when your company calculates and reports tax. If you have sales in jurisdictions you have not selected in AvaTax, the tax calculation returns no tax. Nexus jurisdictions are initially added when you configure your company tax profile.
  • Edit nexus jurisdictions in AvaTax to change where and when your company calculates and reports tax.
  • If you use Returns, after you change your nexus jurisdiction selection, add a filing calendar for the new jurisdiction.
Add new goods or services with special taxability Review the maintenance guide once a month to stay up-to-date on tax code and rate changes.

You may want to to tax everything as fully taxable. If so, enable nexus in the jurisdictions where you're required to register, and collect tax so that AvaTax calculates the full tax amount on your goods and services.

On the other hand, there are a couple of ways to apply product-specific tax calculation to your goods and services. Learn more in manage product taxability.

Add an exempt customer Perform a self-audit each month of your exempt customers and exemption certificates. 

Ensure you have a valid exemption certificate on file for the new customer. If you use CertCapture, add the customer to CertCapture and request an exemption certificate. If you already have the exemption certificate, learn how to upload and validate the certificate

For more information about managing your exempt customers and their exemption certificates, read how to audit your exemption records.

Add a company or location Before the first filing of this new company or location ensure your company and location information is up to date.
Add an employee Before the first filing of the new year, ensure your employee information is up to date.

Create a user profile in AvaTax and CertCapture (if you have both products). Get new employees up to speed quickly by sharing these articles:

Remove an employee Before the first filing of the new year, ensure your employee information is up to date. Deactivate the user profile in AvaTax and CertCapture (if you have both products).
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