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Avalara Help Center

Why is the Amount Due to Avalara different from the Remittance to Tax Authority?

Overview

When reviewing your returns, you may have noticed that the Amount Due to Avalara and the Remittance to Tax Authority do not match.

Environment

AvaTax Update

Resolution

  • The Amount Due to Avalara and Remittance to Tax Authority utilize the Tax Amount as the basis for the payment amounts but there are variances that can cause the net amounts to differ.
    • Timely filing discounts, or vendor discounts, are granted based on a variety of reasons and therefore, can change period to period.
      • Vendor discounts for the current period are displayed in the Remittance to Tax Authority amount for any given state.
        • This amount is not present on your return prior to approving and is added at the time of filing.
          • This is due to Avalara not knowing what our customers are eligible to receive until we file the return.
        • Because of this process, the Amount Due to Avalara amount is higher than the amount paid to the jurisdiction.
      • The left over amount will be rolled over to the next period to reduce the Amount Due to Avalara amount.
        • These are labeled as prior period discounts.
        • This amount is presented on your return during the reconciling and approval period, 1st through the 10th, of each month.
      • To learn more about vendor discounts, please click here
    • You may also see a difference between Return Remittance and Remit to Avalara due to rounding amounts
      • When electronically filing your returns, jurisdictions may round your amount due to the nearest whole dollar.
        • This is caused by the jurisdiction not accepting partial dollar payments.
      • Rounding follows the same process as vendor discounts.
        • They are calculated at the time of filing as Current Period Rounding, and rolled to the next period as Prior Period Rounding.
    • You may see adjustments, labeled as Other, listed under Amount Due to Avalara.
      • When hovering over the adjustment, you will see the description of the adjustment:
        • "Credit due to Company; contact Tax Administering Jurisdiction for refund of over-payment"
        • "Offsetting current discount amount due to lack of collect amount"
          • This adjustment was added to offset the amount that is being remitted to Avalara as the vendor discount is not due from Avalara.
          • For more information, please review Why has my vendor discount been offset
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