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Add or import consumer use tax

This article applies to:AvaTax

Depending on your scenario, you may need to add a consumer use transaction or import a batch of them from your business application.

Add a consumer use tax transaction

Add consumer use transactions to AvaTax as purchase and inventory transfer invoices.

  1. Go to Transactions > Transactions and select Add Transaction.
  2. On the Document Type menu, select Purchase Invoice or Inventory Transfer Invoice. Both of these invoice types calculate consumer use tax.
  3. Enter the rest of the document details, then select Save Document Details.
  4. Add line items. How to do this depends on whether you already calculated consumer use tax.
    For specific details on when to override consumer use tax, see Consumer use tax scenarios.
    • If you have already calculated consumer use tax, enter an Accrued Tax Amount override for the line item:
      1. Enter the line item details, but make sure to enter 0.00 as the Total Amount.
        AvaTax determines the correct taxable amount based on the accrued tax amount you enter in the following steps.
      2. Select Additional Information and Tax Overrides, and under Advanced Tax Handling, choose Override the Tax Amount.
      3. Under Override Type, select Accrued Tax Amount.
      4. Enter the consumer use Tax Amount that you owe.
        The amount you enter here is included in AvaTax reports and Managed Returns.
      5. Click Save Line Item.
    • If you have already paid consumer use tax, enter a Tax Amount override for the line item:
      1. Enter the line item details, including the Total Amount of the purchase.
        AvaTax determines the correct taxable amount based on the accrued tax amount you enter in the following steps.
      2. Select Additional Information and Tax Overrides, and under Advanced Tax Handling, choose Override the Tax Amount.
      3. Under Override Type, select one of the following Tax Amount.
      4. Enter the consumer use Tax Amount that you have already paid.
        AvaTax calculates the tax amount that you should have paid. If you've underpaid, the tax variance is included in AvaTax reports and Managed Returns.
      5. Click Save Line Item.
    • If you have not paid or calculated consumer use tax, add a line item without an override.  
      AvaTax calculates the tax, and the tax amount is included in AvaTax reports and Managed Returns.
  5. Select Calculate Tax to see the results of the tax calculation before saving the transaction
  6. Click Save to save and commit the transaction, or Save as uncommitted if you want to be able to reference the tax calculation later but don't want it included in reports and returns

Import consumer use tax transactions from your business application

When you want to add a large number of consumer use transactions to AvaTax at the same time, import them just as you would other transactions. Indicate if each transaction is a purchase invoice or inventory transfer invoice in the DocType column, and use the ProcessCode column in the import template to handle different consumer use tax scenarios.

Scenario Add a new transaction Adjust an existing transaction
You've already paid tax to the vendor and want to report underpayment to the state ProcessCode 1 ProcessCode 2
You want AvaTax to calculate the amount of tax you need to pay on a purchase or inventory transfer ProcessCode 3 ProcessCode 4
You've already calculated and accrued the tax outside of AvaTax, but want to include it on your returns and reports in AvaTax ProcessCode 5 ProcessCode 6
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