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Avalara Help Center

Why did tax change between the initial and final billing?

Overview

You see a different tax amount on an invoice with the same information and want to know why the tax amount is not the same on all of them, since they have the same customer and items. 

Environment

Avalara AvaTax

Resolution

  • The tax amount will change only if the transaction itself has different information or the settings in your account are changed
    • Tax is only the same if there are no differences in the following:
      • Date
      • Tax codes
      • Customer exemption status (including Entity Use Codes or Exemption number)
      • Address (including origin and destination)
      • Account settings (Nexus, Tax Rules, Item Mapping, etc.)
  • The most common change we see is that the tax code selected for an item has been updated or changed. Since you typically cannot see the tax code (product taxability) on your invoice, it appears to be an identical transaction, but the item is actually being taxed differently. You can review the tax codes listed on the transaction in the Admin Console.