How to find, prepare for, and test tax holiday rates if you're an Aptos Sales Audit user.
Delta File Best Practices
General Instructions for verification:
To verify the contents of a delta file for a sales tax holiday:
- Open up the tax_item_group.tab file in the zip archive.
- Search for the problematic jurisdiction
- Verify that there are two records for each tax item group in that jurisdiction.
- The row with an earlier date should have a tax rate code that is not 1
- The row with a later date should have a tax rate code that is 1 (generally) to return an item to regular taxability rules.
Columns in tax_item_group.tab:
- Type of modification (I = Insert, D = delete)
- Jurisdiction Code
- Tax Item Group ID
- Tax Level Id (Generally fixed to 1)
- Tax Rate Code
- Effective Starting Date
There are no termination dates for tax item group entries, rates are terminated for an item group when they are moved to a new tax rate code.
As you can see from the highlighted rows:
- For Tax Item Group 5194 in Jurisdiction AYPB, a taxability rate code of 10 (a threshold rate) effective 8/2/2019,
- It's then restored to taxability rate code 1 (regular tax) starting 8/5/2019, when the sales tax holiday ends.
Look up tax holidays
- We're tracking participating states and qualifying items over at the Avalara blog, including links to each state's Department of Revenue for when you have questions.
- If there is Sales Tax Holiday data in your monthly file then we'll also provide a summary spreadsheet to let you review the tax codes impacted by the upcoming tax holiday, including the dates that they are affected.
- To view the taxable status for specific tax codes, check our rates and rules page. Use the blank box above the State column to filter for your state by its two letter abbreviation (Ex: FL).
Check your AvaTax setup
- Make sure your company locations are up to date
- Check that your items are all reflecting as you would expect. If you notice something missing, please reach out to Support quickly so we can assist.
- If your company has set up custom tax rules in the past, check your custom tax rules (or change them as needed) in case a qualifying tax code is set to another rate
Test tax holiday calculations ahead of time
- In 2020, tax content will be available a month prior to the holiday - Except AL and MO jurisdictions as those states have the ability to opt in or out.
- To verify accuracy of data, you can run transactions against a virtual POS in your Aptos solution or, if you have one set up, a test kiosk with selected items that you anticipate being affected, and not affected, by the Sales Tax Holiday, to make sure that it's determining tax appropriately.
- Execute a future date transaction in your local environment to verify an item impacted by a tax holiday has the right taxability
- For example, future date a transaction for a valid holiday date in the month of August
- Use AvaTax's built-in Tax Calculator to check rates on a specific tax date
- Contact Avalara Support if you run into any issues related to sales tax holidays