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See how some states are expanding their rules about where businesses collect and remit sales tax.
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Will passing a VAT number calculate business to business rates for EU transactions?

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Overview

We are under the impression that passing a VAT number for EU transactions will change the rates to be business to business and not business to consumer when Avatax calculates.

Environment

Avalara Avatax

Resolution

  • Business to Business transactions are identified by the Buyer's VAT number
    • Transactions will show the Buyer's VAT number in "Buyer's VAT No: " field in the Admin Console if we are receiving it from your accounting system
      • Go to the Admin Console > Transactions > Click the document code to see detail > Click Edit to view additional information or make adjustments.
    • If we do not receive a Buyer's VAT Number, the transaction is processed as one between a business and a consumer (B2C not B2B)