AvaTax address validation is a feature that verifies, corrects, and formats addresses according to the USPS database. When you validate addresses using AvaTax, you ensure that the address is formatted correctly so AvaTax calculates tax accurately. A valid address has 1-3 address lines, including a city, state, and ZIP code. At this time, AvaTax only validates addresses in the United States and Canada. Validating addresses may incur additional usage fees.
Here are some of the most common addresses AvaTax validates:
- Your company's address - When you validate your company's address, you ensure that the origin address used on most invoices is accurate for tax calculation
- Your customers' addresses - When you validate your customers' addresses, you ensure that the ship-to address used on invoices is accurate for tax calculation
- Your vendors' addresses - When you validate your vendors' addresses, you ensure that:
- Addresses used in consumer use transactions are accurate for tax calculation
- AvaTax verifies VAT calculation is correct for the address you provide (where applicable)
Depending on your accounting software, there are other types of addresses that AvaTax validates. We recommend validating all addresses for accurate tax calculation.
Validate addresses several different ways:
- Validate many addresses at once - Most accounting software that integrates with AvaTax includes a utility that allows you to validate many or all addresses at once. We recommended this method for validating addresses.
- Validate a single address - If you only have a few addresses to validate, or if you're adding a new address and have already validated the others in your system, use your accounting software to validate the address or validate the address in AvaTax.
- Validate addresses during tax calculation - Validate addresses on every transaction sent to AvaTax. This is generally a setting in your accounting software. Avalara doesn't recommend validating during tax calculation because this could increase your usage fees significantly.
Validate a customer or vendor address
AvaTax for QuickBooks Desktop provides a tool that shows you whether any address is valid, that is, whether the address exists and has the correct ZIP code and other elements. To use this tool, follow the steps below:
- Configure AvaTax for QuickBooks Desktop to validate addresses for customers or vendors and ensure that the Customer, Vendors, and Others are enabled.
- In QuickBooks Desktop in the Customer Center or Vendor Center, open or create a customer record or vendor record with an address, and then click OK.
- In the Address Validation dialog box, click Accept and OK to use the address that AvaTax validates.
Validate your company address
- Go to File > AvaTax > Utilities and then click Company Address Validation.
- In the Address Validation dialog box, make a note of the validated address details.
- In QuickBooks Desktop, on the Company menu, click Company Information.
- In the Company Information dialog box, update the company address so it matches the validated address in the Address Validation dialog box in step 2.
Validate a batch of addresses
This tool lets you validate the addresses of many customers at once. To use this tool, follow these steps:
- Go to File > AvaTax > Utilities, and then click Address Validation Batch Utility.
- In the Batch Validation dialog box, click any of the following:
- Customer Bill to to validate customer bill-to addresses.
- Customer Ship to to validate customer ship-to addresses.
- Vendor Primary to validate the vendor's primary address.
- Inventory Site to validate the addresses of warehouse locations.
- In the Range Selection dialog box, click any of the following:
- All Entry to validate all entries in QuickBooks Desktop that you chose in the Batch Validation dialog box.
- Display Name to validate entries that you chose in the Batch Validation dialog box based on customer name.
- Report Only to display the validation results without updating the corresponding records in QuickBooks Desktop.
- Auto Validation with Report to display the validation results and update the corresponding records in in QuickBooks Desktop.