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Avalara Help Center

Why is my invoice calculating a wrong tax rate?

Overview

You see that the typical rate for a jurisdiction is higher than the rate showing on your invoice and want to know why.

Environment

Avalara AvaTax

Resolution

  • Please check the address to confirm it is in the expected location and valid.
    • If an address is invalid, it could calculate unexpected rates.
  • Please check if any exemptions or entity use codes are applied.
    • There are certain exemption types that change tax rates for some jurisdictions.
  • Please check the tax date of the transaction.
    • If you have selected to override the tax date, then the rates may changed based off of what they were at that time.

Note: In general, you can check and adjust tax calculations at the line item level by using Review these calculations. To change the tax calculations for a line item, click the expand arrow next to the line item you want to adjust and then click Review these calculations.

On the tax calculation page, review how taxes were calculated for this line item and get help with any changes that you might want to make. This page can help you change the rate used to calculate tax on the item, change whether or not you collect taxes in this jurisdiction, change the address used to calculate tax, and more.

Please see What can I do if I don't think your rates are correct? for assistance with a rate that you suspect is incorrect if reviewing your calculations does not correct the issue.

See alsoEdit, commit, and cancel transactions