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Set up Avalara AvaTax for calculating tax on transactions

This article applies to:AvaTax for QuickBooks Desktop

Set Up Avalara AvaTax for calculating and displaying taxes

On the AvaTax connector's page, select Settings > Tax Calculation to open the Tax Calculation page. Set up the following features to determine how Avalara AvaTax should calculate taxes on your company’s transactions and display them in QuickBooks Desktop. Use the toggle button next to each feature to turn them on or off.

Calculate tax

(Recommended) Turn on to enable tax calculation for your company’s transactions with customers assigned to the AvaTax tax item.

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If turned off, all the tax calculation features under Transaction types will get disabled. Restart AvaTax to bring change to the effect. Check your company’s tax compliance requirements before disabling the features.

Transaction types

Select transaction types for which you want AvaTax to calculate tax. The available options are:

  • Quotes/estimates
  • Sales orders
  • Receipts
  • Invoices
  • Credit memos

Validate addresses before calculating tax

Turn on to enable AvaTax validate addresses of your customers or vendors. Address validation ensures accurate tax calculation and is chargeable.

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You can configure AvaTax for address validation outside the tax calculation events also. Go to Settings > Address Validation.

Calculate tax when address validation fails

  • (Recommended) Turn on to calculate tax on transaction when customer/vendor address validation fails.
  • Turn off if you want to skip tax calculation when address cannot be validated.

Open Sales Documents after calculating tax

Turn on to view sales document for tax amount after each transaction.

Always display tax calculations details

Turn on to open AvaTax in a separate window and review the tax calculation details after each transaction.

Include job name with customer name

  • If you want QuickBooks to send customer name and job name as customer code to AvaTax, turn the toggle button on.
  • If you want QuickBooks to send only customer name as customer code to AvaTax, turn the toggle button off.

Use universal product codes (UPCs) instead of item names

  • If you want to use your company’s UPCs instead of AvaTax item names, select your company’s UPCs from the UPC field drop-down list.

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    In the absence of a specific UPC value, AvaTax item name is displayed.
  • In case of a doubt or if you want to use AvaTax item names only, skip this option.

Display error list on startup

Turn on to display AvaTax error list every time you start QuickBooks.

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