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Avalara Help Center

Does item code affect tax?

Overview

You want to know if the item code you use changes the way that Avalara calculates tax.

Environment

Avalara AvaTax

Resolution

  • Avalara uses the item code to determine tax only when that item is setup in the admin console (under Organization > Items) 
    • If you do not map items to tax codes in the Avalara service your item code has no effect on the transaction taxability
  • When you do not have items associated with tax codes in the admin console, we use the tax code that is submitted to our service in the transaction.