Industries such as hospitality (lodging, restaurants, etc.) are subject to additional taxes and fees beyond standard sales and use tax. These taxes may apply at the state, city, county, or special jurisdictional level. If you collect some of these taxes or fees, you need to update AvaTax to collect the appropriate taxes in the appropriate jurisdictions. The below instructions guide you on adding these other tax types or fees or adding an expiration date for an existing jurisdiction.
Before you begin
- If you're not sure whether you need to register somewhere, see our resources on tax registration and speak with your tax professional.
- By default, jurisdiction effective dates are set to one year before the day you set up AvaTax.
Other tax types such as Lodging Tax, Hospitality Tax, Meals, etc. are only available to customers if the entitlements have been purchased as part of their AvaTax plan. If you're interested, contact your Account Manager.
- In AvaTax, go to Settings > Where You Collect Tax.
- Click the appropriate tax type Lodging tax, Hospitality, or Meals.
- Click Add to where you collect <tax type> tax.
- Select the regions where you collect taxes or fees.
- Click Add selected regions.
- If a region has more than one applicable tax for the selected tax type or there are local collection jurisdictions, you need to review the region details.
- If a region has several tax rates that apply, you may use Customize option for that region and specify which taxes AvaTax should calculate.
- Additionally, if you are required to collect and remit tax in local jurisdictions within the region, you need to add those authorities. Click Add local collection authorities in <region>. Select the appropriate local authorities and click Add these collection authorities.
- Click Save to save the changes for a specific region.
To make changes to a jurisdiction (such as adding an expiration date), click Details on the jurisdiction row, then go to the tax type you need to modify, click the edit icon, make the necessary changes, and click Save. After you are done with the modification, click Done with <region>.
- Click Next to save changes and navigate to the Where you collect tax screen.
Note: If you need to collect the tax in all the local jurisdictions, click Can I select all authorities at once? at the top of the page, then Select all local jurisdictions anyway.
Can't add a tax type to a local jurisdiction?
In some states, like Illinois or Florida, you must add a local tax type at the state level before it can be added to a local jurisdiction within that state.
For example, in AvaTax, Adams county has separate lodging and tourism taxes. Although Illinois does not have a state-level tourism tax, the tourism tax must be checked under Illinois before it can be added to Adams county.