Skip to main content
Avalara Help Center

Why is there tax on a transaction in an SST state with a nontaxable tax code?

Overview

You see tax on a transaction that includes a non-taxable tax code in an SST state, and you want to know why.

Environment

Avalara AvaTax

​SST

Resolution

  • Check the transaction, it must have an item code and an item description
  • Check that the tax code is SST approved, this is listed in the AvaTax Pro Toolkit
    • The tax code NT is not acceptable for SST use
    • Choose a tax code that matches the description of the product or service provided.

 

Note: To adjust these transactions add an item and description, or utilize a tax code that is SST approved.