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Use the tax determination calculator to test your customizations

This article applies to:AvaTax for Communications

Use the tax determination calculator to test any customizations that you've made to tax calculation settings. Such customizations might include regions that are excluded from tax calculation, a group of items bundled into a single line item, and safe harbor overrides.

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Important

This is currently a beta feature available only to some customers using the REST API. See this guide for more information.

Before you begin

In Avalara AvaTax for Communications SaaS Pro (REST), select Settings > Customizations > Manage to verify the customization settings for your profiles.

Steps

  1. In Communications Customer Portal, select Settings.
  2. Select Tax Determination > Tax Determination Calculator.
  3. Specify the basic configuration:
    1. Select a profile. 
    2. Specify the date of the transaction.
    3. Specify a Bill to PCode.
      This is a code that Avalara assigns to identify the geographic boundaries for the taxing jurisdiction.
    4. Select a Transaction type and a Service type.
      The T/S type field updates with your selections.
  4. Optionally, expand Advanced configuration to specify additional parameters:
    1. Customer type - Defines the person or entity purchasing the transaction. Tax implications vary for different categories of purchasers based on location and situation. The Customer type options are:
      • Business - transactions made by a commercial business. Defaults to this value.
      • Residential - transactions made by consumers for home use.
      • Industrial - transactions made at a qualified industrial business. 
      • Senior citizen - transactions made by a customer qualified as a senior citizen in their jurisdiction.
    2. Service class - Indicates the primary activity of an organization as selling local or long distance, which impacts tax application in some jurisdictions. The default value is set to Primary local.
    3. Business class - Specifies if the business making the transaction is an Incumbent Local Exchange Company (ILEC). The default value is Not an ILEC.
    4. Sale type - Indicates whether the transaction is a retail sale to an end user or a wholesale transaction with another seller. The default value is Retail.
  5. Select all checkboxes that apply to the transaction:  
    • Incorporated - Indicates whether the customer involved in this transaction is inside or outside of an incorporated area designated as their location. Selected by default.
    • Prepaid - Identifies pay-as-you-go prepaid communications usage. The prepaid input is used to account for the impact of point-of-sale tax treatment in relevant states. The AvaTax for Communications Customer Portal assumes that all transactions are postpaid.
    • Lifeline - Indicates whether the customer is a lifeline recipient and thus subject to special tax considerations.
    • Facilities - Indicates whether the seller is utilizing their own communications infrastructure to deliver the services. If the carrier delivering the service has company-owned facilities used to provide the service, they are considered facilities-based.
    • Franchise - Indicates whether the company provides services sold pursuant to a franchise agreement between the carrier and the jurisdiction.
    • Regulated - Indicates whether the telecommunication company and its services are regulated by the public utility authorities in the state of the service. Selected by default.
  6. Select Calculate.
    Tax is calculated based on the configuration settings you specified and the customizations you have in place.

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