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Why does the line amount indicate a taxable amount but a 0.00 percent rate?

Overview

You are reviewing the line amount of a transaction and the taxable column is populated but there is no tax rate.  The tax rate is 0%.  

Environment

Avalara AvaTax

Resolution

  • If the invoice Destination Address is in a jurisdiction in which you do not have nexus or are collecting Use tax, the rate will be 0% and the taxing jurisdiction will be based on the origin address.

    • Without Nexus enabled or when using the Sales or Sellers Use Tax Tax Type, the jurisdictions revert to the origin jurisdictions with 0% rate 

  • If the destination address is in a jurisdiction in which you have nexus, tax will charge properly and the taxing jurisdiction will display a tax rate

Next Steps

For more information, see Add Nexus Jurisdictions