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How do I resolve "Taxcode is not set to AVATAX or the Tax rates are not equal to zero for all the line items" in NetSuite?

Overview

You are creating an invoice or sales order and receive error "Taxcode is not set to AVATAX or the Tax rates are not equal to zero for all the line items" under the AvaTax tab of the NetSuite document.  

Environment

NetSuite

Resolution

  • Ensure the "Default Tax Code" is set to "AVATAX" (all caps) not "Avatax" in the Avalara Configuration.

    • Avalara > Setup > Configure Avalara > Tax Calculation section

 

Next steps

For more information see, NetSuite