When you register to collect and pay taxes within another country, you need to indicate if you have a permanent establishment within that country and whether you're the importer of record. If circumstances change, update those settings in AvaTax to ensure Value Added (VAT) and Goods and Services (GST) taxes are calculated correctly.
A physical location where business is conducted means you have a permanent establishment. You're considered the importer of record if your business is responsible for making sure that your products are imported according to local customs.
- In AvaTax, go to Settings > Where You Collect Tax.
- Go to either the VAT / GST tab or the Customs Duty tab.
The Importer of Record and Permanent Establishment settings are used to calculate VAT / GST and customs duty. You can adjust these settings from either tab.
- Select Details (sometimes appears as Manage Country Details) next to the name of the country you want to update.
- Select or clear the This Is a Permanent Establishment and You're the Importer of Record check boxes to fit your business.
- Select Save.
- Repeat steps 3-5 for any other countries where you want to update your importer of record and permanent establishment settings.