AvaTax for Communications (AFC) uses a system of numbers to represent the Transaction Types and Service Types for the service you wish to tax. Passing valid combinations of transaction and service type pairs provides AFC part of the information necessary to produce the appropriate taxes for a specific jurisdiction.
Transaction and Service Types in Valid Pairing
In order to receive accurate taxes, it is necessary to select a valid transaction and service type pair that matches the service you are providing. As an aid to selecting the proper transaction and service type pairs, TM_00115_AFC Transaction and Service Types lists the valid pairs and provides a description of its primary usage. AFC won't return accurate taxation if invalid transaction and service type pairs are set.
Additional Transaction and Service Types
Telecom and SAU Transaction and Service Types are available for use with Avalara AvaTax for Communications SaaS Pro (REST) v2 and Avalara AvaTax for Communications SaaS Standard. They aren't available to view in the AvaTax for Communications Viewer (Telecom) and are available within the United States only.
The category of a tax type can be used for exemptions by category type. A list of categories and their definitions can be found on AFC Tax Types.