Skip to main content
Avalara Help Center

Why is my drop shipment to Alaska calculating Washington rates?


Avalara Avatax


We have an Alaska company who uses a Freight forwarding company in WA. It is charging WA tax.


The Avatax engine is a purely data in = data out system.

If the invoice has a destination of Washington and it's an interestate transaction it will calculate the Washington rates even if the product was actually drop shipped to Alaska.

Interstate transactions will always calculate tax at the destination address.