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Avalara Help Center

Why does my invoice show different tax from the credit memo?

Overview

Why is tax on my original invoice different from the tax on the credit memo?

Environment

Avalara AvaTax

Resolution

  • If your credit shows different tax to the original invoice.
    • Make sure the address is exactly the same on both transactions.
      • If one address shows a zip+4 and the other shows only a zip 5, it normally means one address was validated and the other was not, and this can cause different taxability.
    • Make sure there have been no update to rates or additional tax jurisdictions added between the date of the invoice and the date of the credit.
    • Make sure the tax codes used are the same for both and see if there was any change to taxability for the code.
    • Check if there was an exemption certificate added or removed for the customer, in between the time the invoice was raised and the credit was made.
    • See if there are any jurisdiction overrides put in place on the address by either the customer or by Avalara.
  • If a tax rule affected the original invoice make sure it applies to the credit also, (check the date to make sure this applies to the date for the credit.)
  • Check to see if a sales tax holiday was in place for either the invoice or the credit that may have affected taxability.

 

 

 

 

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