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Avalara Help Center

Why are software rates not applying to my sales?

Overview

You expected a reduced rate on your sales because you sell software, but they are being taxed at the full rate.

Environment

Avalara AvaTax

Resolution

  • You must use a software tax code (one Avalara designed or your own custom one) to see software related tax applied to your sale:
    • Go to the admin console > Transactions tab > pull up the transaction > click on it to see the items sold > review the tax code > P0000000 is the default code used if no specific code was provided
    • Correct item mapping if needed, this can be in the admin console or your accounting system depending on your configuration