Avalara recently determined that between October 1, 2020 and October 27, 2020, AvaTax sales and use tax transactions applied to addresses in Vermont using tax code NT may have produced unexpected sales and use tax results. Sales and use tax transactions in Vermont using tax code NT may show an unexpected taxable calculation instead of an exempt calculation.
Avalara AvaTax has been updated effective October 28, 2020 to retroactively return an exempt sales and use tax calculation for tax code NT beginning October 1, 2020; however, we recommend following the steps below.
Please take these mitigation steps:
Identify affected transactions
Review your sales and use tax transactions in Vermont for tax code NT from October 1, 2020 through October 27, 2020, to see which transactions calculated an unexpected taxable calculation.
To find affected transactions, review transactional data on the Transactions tab in AvaTax, or run a Tax Return - Sales and Sellers Use Tax Report.
Recalculate sales tax on the affected transactions
Because the Vermont state tax filing period is open, you will need to complete this review and make any necessary changes on or before November 10, 2020.
- To recalculate sales tax, import transactions, or recalculate from your accounting system.
- Next, refund your customer the sales and use tax calculated for tax code NT.
Note: It is unlawful to over-collect and not remit the over-collected tax. If you choose not to recalculate and refund the over-collected tax, you must report and remit the over-collected tax.
If needed, contact your tax professional for guidance on how to report the overcharged tax.