Skip to main content
Avalara Help Center

Does Avatax calculate on the gross price or net price for tax?

Overview

We would like to know if the taxes are calculated on the gross Price (original or list price) or net Price (list price minus discounts) for the customer. 

Environment

Avalara Avatax

Resolution

Avatax will calculate tax on whatever comes to us on the line as the amount field, on a line per line basis. Then the tax is added up for each line together at the end for a total tax figure.

The engine itself does not do any combining of tax and amount for a grand total or anything like that.