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Why is my drop shipment to Alaska calculating Washington rates?

Overview

Avalara Avatax

Environment

We have an Alaska company who uses a Freight forwarding company in WA. It is charging WA tax.

Resolution

The Avatax engine is a purely data in = data out system.

If the invoice has a destination of Washington and it's an interestate transaction it will calculate the Washington rates even if the product was actually drop shipped to Alaska.

Interstate transactions will always calculate tax at the destination address.