Calculate freight tax using Avalara tax codes
This article applies to:Avalara AvaTax Update
AvaTax includes tax codes specifically made to track freight tax and handling. Set up Avalara tax codes to track and calculate freight tax on your products.
Steps
- Decide which freight code works best for your product.
- Go to the Avalara tax codes page and select Freight.
- Choose the code that works best for your business and products.
- Decide where to map your freight charges to the tax code you selected.
- Find the steps specific to your business application to map codes there.
- Follow the directions below to map codes in AvaTax.
- Select Settings > What You Sell.
- Select Add an Item.
- Enter the item code that you use for freight in your business application along with a description.
The item code must match the name or code you use in your business application to map correctly.
- Enter the Avalara tax code you selected earlier.
- Select Save.
Now that your freight charges are mapped to an Avalara tax code, tax is automatically calculated whenever AvaTax sees a freight charge matching the one you mapped. We keep the rates up to date for each jurisdiction so you don't have to.