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Why does my invoice show different tax from the credit memo?


Why is tax on my original invoice different from the tax on the credit memo?


Avalara AvaTax


  • If your credit shows different tax to the original invoice.
    • Make sure the address is exactly the same on both transactions.
      • If one address shows a zip+4 and the other shows only a zip 5, it normally means one address was validated and the other was not, and this can cause different taxability.
    • Make sure there have been no update to rates or additional tax jurisdictions added between the date of the invoice and the date of the credit.
    • Make sure the tax codes used are the same for both and see if there was any change to taxability for the code.
    • Check if there was an exemption certificate added or removed for the customer, in between the time the invoice was raised and the credit was made.
    • See if there are any jurisdiction overrides put in place on the address by either the customer or by Avalara.
  • If a tax rule affected the original invoice make sure it applies to the credit also, (check the date to make sure this applies to the date for the credit.)
  • Check to see if a sales tax holiday was in place for either the invoice or the credit that may have affected taxability.





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