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Why is freight not taxing on invoices using my custom tax codes?


I have an invoice where I have two lines, one using my custom tax code and the other being a freight code. I know freight should be taxable but it's not calculating tax on the freight lines.


Avalara Avatax


  • Freight is typically not going to tax if the only lines on your invoice are set to a code that is Type: Service
  • Service type tax codes typically mean nothing is actually being shipped so our engine defaults to non taxable for freight in this scenario.