You are creating an Canadian order but receive an error 'Invalid Canadian Tax Code: AVATAX'.
In order to calculate tax in Canada, create two tax codes (one for PST and one for GST), and then group them. See Create Tax Codes for Canada.
- For tax calculation Avalara looks at the addresses on the customer record, invoice and location. Also, we check the Tax Item ('Financial' tab) on the customer record.
- When you select a Canadian customer to invoice you should notice the Summary section of the invoice reflect 'GST/HST" and 'PST'. If the form doesn't update after selecting the customer, please check the address field.
- Under the ''Financial' tab of the customer record. The Tax Item should be ‘AVATAX’ for a US customer. For a Canadian customer the Tax Item should be 'AVATAX-CAN'.
- On a Canadian invoice, when adding a line item, the tax code should auto populate with ‘AVATAX-CAN’. On a US invoice, when adding a line item, the tax code should auto populate with “AVATAX’.
Note: For NetSuite OneWord, if you ship to addresses in other states/provinces, ensure Nexus is added under the Subsidiary's nexus. Go to 'Setup' > 'Company' > 'Subsidiaries'.