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Avalara Help Center

How do I resolve 'Invalid Tax Code Reference Key xxxxxx' when trying to update Tax Item in NetSuite?

Overview

You are trying to update the 'Tax Item' on the customer record ('Financial' tab) in NetSuite but receive the following error "Invalid Tax Code Reference Key xxxxxx'.

Environment

NetSuite

NetSuite OneWorld

Resolution

  • This is a result of the 'Tax Code Lists Include' field being set to 'Tax Groups Only' instead of 'Tax Groups and Tax Codes'.
  • In NetSuite, go to Setup Accounting Set Up Taxes
    • For United States, check the following 
      • Ensure Default Tax Code is set to AVATAX
      • Ensure Tax Code Lists Include is set to Tax Groups and Tax Codes
      • Ensure Per-Line Taxes on Transactions is checked
  • Next, for each state under "Tax", please ensure the "Preferred Tax Agency" is set to 'Avalara' and the 'Home Tax Code' is set to 'AVATAX'. 
  • Click 'Save'