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.
If you want to enable address validation, ensure that the Enable Address Validation is set to True in AvaTax Configuration > Integration options > Enable Address Validation.
To validate the address of any customer, follow these steps:
- On the QuickBooks Online menu, click Customers.
- In the Customer Center, in the upper right, click New Customer.
- In the Customer Information window, type the customer's address. The address below, for example, is missing a street designation (St, Blvd, Dr, or Ln, etc.) and a ZIP code. If the billing address and the shipping address are the same, then select the Same as billing address option.
- To save and validate the address, click Save. The status is updated in the Notes tab. If a validation is unsuccessful, then a status email is sent to the registered user.
- If you added the billing address and selected the Same as billing address option, then the validated address is saved in the shipping address fields.
- If you have added the billing address and did not select the Same as billing address option, then the validated address is saved in the billing address fields.
- If you have added the shipping address and did not select the Same as billing address option, then the validated address is saved in the shipping address fields.
- On the QuickBooks Online menu, click Customers, and double-click the customer whose data you just saved. AvaTax for QuickBooks Online automatically validates the address that you entered and corrects it if it's wrong.