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Set up AvaTax for Beverage Alcohol

This article applies to:AvaTax for Beverage Alcohol

Setting up AvaTax for Beverage Alcohol to automate tax calculations for your business involves four essential milestones. Each milestone links to detailed step-by-step instructions to help you successfully complete each one. 


  1. Create a basic company profile.
    Start by telling us a little about your company and where you collect tax. A company profile is the key information about your business that determines how tax is calculated.
    1. Add your company information.
      Begin by entering your address and tax ID numbers.
    2. Tell us where you collect and pay tax.
      Enter the states, local jurisdictions, and countries where you're registered to collect and pay tax. You'll set up tax collection for both sales & use tax, and for alcohol-specific taxes.
    3. Verify your jurisdictions and activate your company.
      Double-check that we know everywhere you collect and pay tax. Confirm the tax types, effective date for each jurisdiction, and tax ID numbers.
    4. Add other company locations for location-based filing.
      Add other locations if you need to file returns based on location reporting requirements.  
    5. Set up your company profile for online marketplace transactions.
      If you sell through an online marketplace such as VineSpring, Commerce7 and VineSUITE, learn how to add it to your company profile. 
  2. Connect your system to AvaTax for Beverage Alcohol
    After you create your initial company profile, the next step is to connect your business application or system to AvaTax for Beverage Alcohol through an integration, software that enables the flow of transactions to AvaTax for Beverage Alcohol. 
  3. Fine-tune your company profile.
    After you create an initial company profile and connect your system to AvaTax for Beverage Alcohol, you may want to make further adjustments depending on the products and services you sell and where they're sold. By default, AvaTax for Beverage Alcohol calculates tax for all product and services as if they're tangible personal property—at the standard rate for each jurisdiction.  
    1. Review where you collect and pay tax.
      Before making adjustments, review where you're registered to collect and pay tax. If you're required to file based on location—or you sell through an online marketplace like Amazon or Etsy—confirm your company locations. 
    2. Map the items you sell to Avalara tax codes.
      Make sure your customers receive the most accurate sales tax rate. The taxability of some products and services—such as clothing, food, beverages, downloadable content and software, and pharmaceuticals—varies depending on jurisdiction.
    3. Exempt customers from sales tax.
      Skip this step if you don't have exempt customers. Otherwise, decide how you want to manage exempt sales and exemption certificates. Note that exemption certificates exempt customers from sales tax, but not alcohol markup tax.
  4. Test your setup.
    After you fine-tune your company profile, send a few test transactions to validate the tax calculations and make sure your connection is working. 
    1. Use the tax calculator.
      Preview tax calculations and validate addresses. 
    2. Create a test transaction in AvaTax for Beverage Alcohol.
      See if the results are expected. ​​​​​Ensure transactions are associated with the correct company locations for location-based filing.
    3. Send a test transaction from your application.
      Send a few test transactions to validate business scenarios and workflows. 
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