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Why Does My Transaction Not Have Tax?

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Overview

You want to know why your invoice is not returning a tax amount.

Environment 

Avalara AvaTax

Resolution

  • Nexus for the state has not been enabled.
    • If Nexus is enabled, check the Begin Date and End Date
      • The state/jurisdiction doesn't have Sales or Use Tax
  • A $0.0 amount was passed
  • There is a rule affecting the item or jurisdiction.
  • A tax code, either custom or an Avatax System tax code, is being applied.
  • An Exempt customer profile has been applied.
    • If an exempt customer profile has been applied, an icon will be displayed in the exemption column on the transaction.
  • An Exemption Certificate has been applied:
    • Check the transaction to see if there is an Entity Use Code.
    • Check the transaction to see if there is an Exemption Certificate Number.
    • Check to see if the Customer (Customer Code) has an active exemption certiciate 
      • Anything in this field will trigger an exemption, returning zero tax amount 
  • An invalid address.
    • Use the Basic Tax Calculator in the Tools tab to check both the origin and destination addresses to make sure they will validate.