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Why is the AvaTax for Salesforce connection test failing with parser error?

Overview

When testing the connection of AvaTax for Salesforce the following error is appearing:


Unexpected element. Parser was expecting element 'http://schemas.xmlsoap.org/soap/envelope/:Envelope' but found ':html'

Environment

AvaTax for Salesforce

Resolution

The service URL in the TaxNow Settings needs to be either https://avatax.avalara.net or https://development.avalara.net.