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Avalara Help Center

Why is my transaction calculating sales tax when we are registered for use tax?

Overview

 We are registered to collect use tax. The Basic Tax Calculator in Avatax shows 6% tax (state only) for the IA ship to location, but when the invoice was uploaded, sales tax was calculated adding the county tax with the total of 7%.

Environment

Avalara Avatax

Resolution

You can't collect use tax on an intra-state transaction.
Use tax is only calculated when it's interstate.