Why is one line on my transaction showing a taxable and a non-taxable amount listed?
Overview
I have a transaction that has a line that has both taxable and non-taxable amounts.
Environment
AvaTax
Resolution
- Some software Tax Codes are considered partially taxable in several states
- Test your tax code in the Basic Tax Calculator to determine if this is the case
- You may have used an Exemption reason or Entity Use Code that is partially taxable
- The transaction may have a Tax Override or Tax Rule that is forcing AvaTax to calculate only part of the transaction as taxable
Next steps
For more information, see manage product taxability.