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Why do my identical tax rules in Production and Development create different tax results?

Overview

You have created a tax rule in both your production and development accounts, but only one of the accounts is getting the expected tax results when you create a test transaction. You want to know why and how to fix it.

Environment

Avalara AvaTax

Resolution

  • The tax rules will cause the same tax calculation results if the transactions are identical (details below), the two accounts have identical nexus selections, identical exemptions (under Organization > Exemptions or on the transaction itself), and (if any exist) other tax rules or jurisdiction overrides which would apply to the transaction are also identical

  • Transactions will have the same result if they use the same:

    • Items (Tax Codes)
    • Addresses (Origin and Destination)
    • Date
    • Customer (Customer Code)
    • Document Type (Sales or Consumer Use)
  • Go to the Transaction detail to view the tax jurisdictions (Transaction tab > click transaction > click Expand All)
    • Compare the jurisdictions to determine if they are the same and which one(s) have different rates, or are taxable/non-taxable/exempt differently
  • Once you find the specific difference, check that jurisdiction in Nexus, other Tax Rules, and Jurisdiction Overrides 
  • If the different applies to multiple jurisdictions there may be a rule at the state level, or for the tax code, expand your review to include additional areas in the same state, or for the same tax code, customer exemption, etc.