After you create an initial company profile and connect your system to AvaTax Update, you may want to make further adjustments depending on the products and services you sell and where they're sold. By default, AvaTax Update calculates tax for all product and services as if they're tangible personal property—at the standard rate for each jurisdiction.
- Review where you collect and pay tax.
Before making adjustments, review where you're registered to collect and pay tax. If you're required to file based on location—or you sell through an online marketplace like Amazon or Etsy—confirm your company locations.
- Map the products and services you sell to Avalara tax codes.
Make sure your customers receive the best sales tax rate. The taxability of some products and services—such as clothing, food, beverages, downloadable content and software, and pharmaceuticals—varies depending on jurisdiction.
- Exempt customers from sales tax.
Skip this step if you don't have exempt customers. Otherwise, decide how you want to manage exempt sales and exemption certificates.