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Avalara Help Center

Why is the Remit to Avalara amount different from the Return Remittance?


When reviewing your liability worksheet, you may have noticed that the Remit to Avalara and the Return Remittance do not match.


Avalara Returns


  • The Remit to Avalara and Return Remittance utilize the Tax Amount as the basis for the payment amounts but there are variances that can cause the net amounts to differ.
    • Timely filing discounts, or vendor discounts, are granted based on a variety of reasons and therefore, can change period to period.
      • Vendor discounts for the current period are displayed in the Return Remittance to Tax Authority amount for any given state.
        • This amount is not present on your return prior to approving and is added at the time of filing.
          • This is due to Avalara not knowing what our customers are eligible to receive until we file the return.
        • Because of this process, the Remit to Avalara amount is higher than the amount paid to the jurisdiction.
      • The left over amount will be rolled over to the next period to reduce the Remit to Avalara amount.
        • These are labeled as prior period discounts.
        • This amount is presented on your return during the reconciling and approval period, 1st through the 10th, of each month.
      • To learn more about vendor discounts, please click here
    • You may also see a difference between Return Remittance and Remit to Avalara due to rounding amounts
      • When electronically filing your returns, jurisdictions may round your amount due to the nearest whole dollar.
        • This is caused by the jurisdiction not accepting partial dollar payments.
      • Rounding follows the same process as vendor discounts.
        • They are calculated at the time of filing as Current Period Rounding, and rolled to the next period as Prior Period Rounding.
    • You may see adjustments, labeled as Other, listed under Remit to Avalara.
      • When reviewing the adjustments, you will see the description of:
        • "Credit due to Company; contact Tax Administering Jurisdiction for refund of over-payment"
        • "Offsetting current discount amount due to lack of collect amount"
          • This adjustment was added to offset the amount that is being remitted to Avalara as the vendor discount is not due from Avalara.
          • For more information, please review Why has my vendor discount been offset
    • Values in the Prior Accrual column are taxes that have been collected during this filing period but are being remitted at a later date.
      • For example, if you have a return that needs to be filed monthly and a return that needs to be filed quarterly, then the monthly returns would have taxes collected for the quarterly return listed in the Prior Accrual column.