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Avalara Help Center

Why are there multiple tax codes with similar descriptions?

Overview

You see that several tax codes have a very similar description and you want to know why there are separate codes and which one you should choose.

Environment

Avalara AvaTax

Resolution

  • Whenever a unique feature of a something would cause it to be taxed differently, that can create the need for a unique tax code
  • Choose the tax code which matches your full product description to obtain the most correct tax