If you purchased AvaTax in 2016 and have not renewed your subscription in 2017, the following rules apply (see section 3 of your 2016 terms for a complete description):
Normal AvaTax usage calculation
Normally, Avalara bases usage calculations on documents. A document is any record that you enter, upload, or otherwise record in AvaTax. This includes:
- Committed sales invoices
- Purchase invoices
- Inventory transfer invoices
- Return invoices
- Committed e-commerce shopping carts
Each of these items counts as one document for the purpose of calculating your AvaTax usage, as will any subsequent alteration of the document. These records are always considered documents, regardless of the tax result calculated by AvaTax. Avalara doesn't bill for documents where the total calculated tax is zero because all line items in the document are destined for jurisdictions in which you're not registered to collect tax. (You tell AvaTax where you're registered in your nexus settings.)
Alternate usage calculation (based on API or invoice lines)
In the situations described below, Avalara may use one of the following alternate calculations of usage to better capture your use of the AvaTax service, according to our "fair use" policy:
- If you don't submit documents to AvaTax in a given billing month, AvaTax calculates usage as follows:
- Every 5 API calls to the address validation service count as one document
- Every 10 API calls to the tax calculation service count as one document
- Every 100 invoice lines sent to the tax calculation service count as one document
- If you submit documents to AvaTax in a given billing month, but the usage of AvaTax API calls or the number of invoice lines you submit exceeds ordinary AvaTax usage, AvaTax calculates usage as follows:
- Every 50 API calls to the address validation service count as one document
- Every 100 API calls to the tax calculation service count as one document
- Every 1000 invoice lines sent to the tax calculation service count as one document
Here's an example. One day, you:
- Submit 5 billable documents
- Don't exceed 50 address validations
- Only have 20 invoice lines per document
- Had 1000 API calls to the tax calculation service
In this case, AvaTax translates your 1000 API calls to the tax calculation service into 10 documents, and then it adds them to your 5 billable documents, giving you a total of 15 billable documents that day.
Frequently Asked Questions
What if I don’t collect and remit sales tax in a jurisdiction?
AvaTax only calculates usage for activity in states where you indicated you have nexus and are registered to collect and remit tax. If the total calculated tax on a document is zero because all line items in the document are destined for jurisdictions in which you're not registered to collect tax, that document isn't included in the usage calculation.
Where can I monitor my usage?
Go to the Reports tab, and then click Transaction Usage Reports.
I’m a new AvaTax customer. If I test my configuration, will the document I submit be considered billable?
Yes. AvaTax doesn't know whether a document is a test document or is legitimate. As a result, any document tested in your production AvaTax account counts as billable. If you need to do a lot of testing, purchase a sandbox account to avoid this type of usage. Contact your Customer Account Manager (CAM) to request a sandbox account.
If I import old documents, are they considered billable?
Yes. Avalara bills for documents imported into AvaTax, even if the documents are from a prior period.
Do the Admin Console tax calculators generate usage?
Calculating tax through the basic or advanced tax calculators in the Admin Console counts as an API call (under our "fair use" terms) but doesn't generate a billable document.