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Avalara Help Center

Why did tax not calculate on a transaction?

Overview

You are working with a transaction, but tax is not calculating.

Environment

Avalara AvaTax

Resolution

  • Transactions will not have tax if:
    • They occur outside of the Nexus period (check transaction Tax Date and that nexus is selected in that state listed on the destination address - check Organization > Nexus)
    • The items are non-taxable (check Tax Code)
    • The customer is tax exempt (check Organization > Exemptions, Entity Use Code, and Exemption No. fields)

Note: To check the tax code on transactions which are not posted in your Admin Console, you must review the tax code in your accounting system.

Next steps

For more information, read manage transactions.