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Avalara Help Center

Am I able to report Use tax with TrustFile?

Overview

You need to know how Use Tax is reported on your return to the state.

Environment

TrustFile

Resolution

To clarify, there are two main forms of Use Tax - Consumer's Use tax and Vendor's Use tax.

TrustFile does not support Consumer's Use tax at this time but is able to support Vendor's Use tax in states that require Sales tax to be reported as Vendor's Use tax. 

To more accurately allocate tax based on both the origin and destination address for the purpose of Vendor's Use tax requirements a recent change was made to TrustFile. Previously, TrustFile allocated tax to jurisdictions using sales tax rules even if the origin address was out of state. Going forward, we’ll use the origin address of the transaction to determine how tax is allocated. In most cases, there should be no change required on the part of our customers—our connectors already correctly use origin addresses. However, customers who have multiple business locations and upload CSV files to TrustFile should ensure that the origin address is included in the file to get the most accurate tax allocation.  

TrustFile will continue to make sure that all the tax you collect is remitted. Ensuring correct origin addresses on transactions will make sure that the tax gets allocated to the correct taxing authorities. You may also begin to see tax amounts being allocated into a state's Use Tax designation on the returns, which is a result of the change listed above and aligns with the requirements of the state for reporting.

If you require reporting of Consumer's Use Tax, please reach out to your account manager for more information on our other Returns offerings.

 

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