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Change freight and handling taxability

This article applies to:Avalara AvaTax Update

By default, AvaTax calculates tax on freight and handling based on the document's destination address. The freight and handling tax dependency level controls which line items your freight and handling taxability depend on. If you're not sure which setting to use, leave the line-level freight and handling tax dependency off.

Steps

  1. In AvaTax, go to Settings > All AvaTax Settings.
  2. Next to Advanced Company Settings, select Manage.
  3. To change the way AvaTax calculates tax on freight and handling, select the option you want under Freight Handling Dependency, . 
    1. Leave line-level freight and handling dependency off to make the taxability of freight and handling dependent on all line items in the document.
    2. Turn line-level freight and handling dependency on and select how close a match the destination address needs to be to the dependent line items.
    • Line Matches Freight Line State
      Select to make the taxability of freight and handling dependent on all line items that have the same destination state as the freight or handling line.
    • Line Matches Freight Line Tax Region
      Select to make the taxability of freight and handling dependent on all line items that have the same destination tax region (same set of taxing jurisdictions) as the freight or handling line.
    • Line Matches Freight Line Address
      Select to make the taxability of freight and handling dependent on all line items that have the same destination address as the freight or handling line. 
  4. Select Save Settings. 

 

 

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