In order to provide the benefits of the SST program to customers, transaction data should be uniform and meet certain requirements set forth by the governing board.
For more detailed information, see the Streamlined Sales Tax Governing Board website.
This means all of your transactions need to make it into AvaTax, whether through your business application or manually importing transactions.
Note: Use Process Code 3 when importing transactions to ensure they're calculated in our system. See Import guidelines.
Must map items to AvaTax Tax Codes
This means you should map items you sell to Avalara tax codes when setting up your company in AvaTax. Two important points:
- Avalara tax code NT (non-taxable product) can't be used on SST transactions.
- Any item without an Avalara tax code is automatically mapped to P0000000, which is taxable everywhere.
Use the Find Tax Codes tool to look up tax codes.
Must pass an item code and item description for each nontaxable item sold
Your transaction needs to include an item description in addition to an item code or SKU. See What's in a transaction.
Note: Transactions with a blank item code and a blank item description will calculate tax.
Must pass a street-level address for accurate tax calculations
Your transaction needs to include a street address in addition to a state and ZIP code. Latitude-longitude coordinates can't be used. See What's in a transaction.
Tax overrides are not permitted on transactions in SST states
There are two exceptions to this. Overrides may be used if:
Custom rules to reduce tax aren't permitted in volunteer SST states
The following rules, however, are allowed:
- Rules that make an item taxable
- Exempt entity rules that make an exempt customer taxable
See Create a custom tax rule for more information. Additionally, in non-volunteer SST states, any kind of custom rule is permitted.
Must file a monthly Simplified Electronic Return (SER) in xml format via their CSP (Avalara)
Avalara is the CSP, and files on your behalf. Reconcile your tax liabilities in AvaTax with your accounting application’s sales/sales tax reporting. See SST Filing Timelines.