AvaTax can calculate many different kinds of taxes, ranging from international tariffs to specific local taxes. Most businesses in the U.S. collect and pay sales and use tax. If you aren't sure about tax reporting requirements for your business, ask a tax professional.
A recent U.S. Supreme Court ruling (South Dakota v Wayfair, Inc.) changed the requirements for when sales and sellers use tax should be collected when a seller does not have a physical location in the state. Start learning about how these requirements might apply to your business by using our resources on tax requirements and our interactive guide to tax rules in U.S. states.
Included with AvaTax
The following tax types are included in your standard subscription for AvaTax.
|Tax||Type of tax||Description|
|Sales tax||State or local||A transaction tax in the U.S. by an in-state seller that is registered to collect in that jurisdiction. If your company has a physical location in a state, you may need to collect and pay sales tax.|
|Sellers use tax||State or local||A transaction tax collected and remitted in the U.S. by an out-of-state seller with no physical location in the taxing jurisdiction. If your company doesn't have a physical location in a state but you have customers there, you may need to collect and pay sellers use tax.|
|Consumer use tax||State or local||A transaction tax collected and remitted in the U.S. by consumers when sales tax or sellers use tax aren't charged on a purchase.|
|VAT / GST||International||A customs tax charged on goods being imported into certain countries. You might not have to pay these taxes depending on where you're shipping from. For example, you can ship goods from any country in the European Union to any other country in the EU without needing to pay VAT. If your business is shipping internationally to countries with VAT or GST, manage your place of supply and VAT sales threshold settings to help AvaTax calculate these taxes for you.|
Other taxes and fees
AvaTax can also calculate other types of taxes and fees. The following tax types require additional configuration, and some require an additional subscription. Contact your Account Manager to request additional tax types.
|Tax||Type of tax||Description|
|Lodging tax||State or local||
A tax on short-term rentals of rooms or other real estate, typically collected and remitted by the property owner. This tax could be charged per night, per person, or on the total cost of the stay, depending on local tax laws.
Also called hotel tax, room tax, or tourist tax.
|Bottle deposit||State or local||
A deposit on goods sold in plastic or glass bottles. If you sell these items, you may have to participate in a local bottle deposit program.
|Electronic waste tax||State or local||A tax charged on retail purchases of certain electronics in order to cover the future cost of recycling them. If you sell electronics that this tax applies to, you must collect and pay this tax much like you would sales and sellers use tax.|
|Bike tax||State or local||A tax charged in Oregon, which doesn't have any general sales tax, on bike sales in order to fund infrastructure projects for pedestrians, bikes, and other non-motorized commuters.|
|Checkout bag tax||State or local||A tax on certain kinds of grocery bags to encourage businesses and consumers to use recyclable bags instead of non-biodegradable plastic ones.|
|Customs duty||International||A tax on goods crossing international borders. If you have regular international sales, AvaTax can calculate customs duties for each country that you sell into, letting you keep your customers informed of these fees when they're placing their orders.|