A tax override is where instead of AvaTax calculating the tax, you want to tell us the tax and have our system honor the amount. The use case is typically for tax amounts calculated by an external source, and then reported to Avalara to file.
Use the tax override option to prevent AvaTax from calculating sales tax on a transaction, preserving the sales tax amount already entered on the transaction.
- Create your own tax code with your desired tax rate. In NetSuite, go to Setup > Accounting > Tax Codes > New.
- On the Items tab, select your tax code (other than AVATAX) which you want to stop AvaTax from calculating sales tax.
- Click Ok.
- On the Items tab, select TAX AMOUNT OVERRIDE.
- (Optional) Click Calculate Tax.
- Click Save.
When the transaction posts to AvaTax, sales tax isn't calculated and the Tax Override Reason listed on the transaction in AvaTax is "Tax has been provided by another service."
Note: There is no way to enter your own tax amount in NetSuite. Tax amount field is linked to tax rate field. NetSuite calculates tax amount based on tax rate assigned to particular tax code. This is native NetSuite functionality. Whatever tax is available on the transaction summary section, will be used by Avalara to override in AvaTax Update.