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Avalara Help Center

Why is Freight taxing?

Overview

I have transactions where freight is calculating tax when it shouldn't be.

Environment

Avalara Avatax

Resolution

  • Review your transaction to make sure that a Freight tax code is used:
    • Transactions > select transaction (click on document code)> review tax codes listed on the Lines/Item that is the Freight charge
    • ​​If the only item listed in the sale is Freight, it is taxed unless Freight is specifically tax exempt in that state
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