You're seeing that anis not taxing how it should be.
- Pro Code taxability can be overridden by three main causes:
- Tax rules: Check the tax rules section in the Admin Console for any rules associated to the Pro Code or custom code.
- Custom tax codes: If the AvaTax System Tax Code was created in the Admin Console as a custom code, the Admin Console sees the it as a custom code. Even though it looks exactly like an AvaTax System Tax Code, the system treats it like any other custom code - taxing it fully. In this case, simply map items directly to the AvaTax system tax codes
- ERP Mapping: Items may be mapped to within the ERP. This may result in broken behavior.
For more information, see manage product taxability.