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What are the cross-border settings in Avatax?

Overview

You want to know what the cross-border settings are in Avatax.

 

Environment

AvaTax Update  AvaTax

 

 

Resolution

  • Cross-border settings are located in the Jurisdictional settings in Avatax (where you collect and remit tax).
    • Jurisdictional Obligation (Nexus) - Seller is obligated to calculate and remit tax.  (If you need assistance with registration in a jurisdiction, please reach out to your Customer Account Manager).
    • Permanent Establishment (the Jurisdiction must be selected, in order to choose Permanent Establishment) -  Seller has a physical location in the country that is involved in selling or providing local services.  When this is set to true, AvaTax assumes the Permanent Establishment was used in the transaction.  Permanent Establishment settings are generally only used for non-goods transactions.
    • Importer of Record - (the Jurisdiction must be selected, in order to choose Importer of Record) - This is not relevant for intra-European sales or imports into the United States.
      • If set to True, Avatax will calculate tax and applicable duties on the sale of goods at the destination
      • If set to False, Avatax will not calculate any tax or duties, but will determine the sale at the origin

 

 

 

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