Tax Automation (AvaTax)
Last update:
07/21/2026
Completed
In this topic
AvaTax Overview
- Introduction to AvaTax
- Setting Up the AvaTax Connection
- Real-Time Tax on Sales, Invoices & Checkout
- Managing Customer Exemption Certificates
Connecting Your AvaTax Account
Calculating Tax on Transactions
Tax Exemptions
Introduction to AvaTax
Why Use an External Tax Engine
Sales tax in the US and Canada is notoriously granular — rates and rules vary by state, county, city, and even specific address, and change frequently. Rather than maintaining that complexity yourself in Quickenerp's own tax configuration, AvaTax (by Avalara) calculates the correct tax for every transaction in real time by looking up the actual jurisdiction rules for the exact address involved.
Core Concepts
| Concept | Description |
|---|---|
| AvaTax Configuration | Your account connection: Account ID, License Key, and whether you're on Production or Sandbox. |
| Product Tax Code | A classification per product/category that tells AvaTax how that item is taxed (many goods/services have special rules — groceries, clothing, digital goods, etc.). |
| Exemption Code | A reason a customer doesn't pay tax (resale certificate, non-profit, government) applied per customer/jurisdiction. |
Note: AvaTax's address validation service specifically supports US and Canada — outside those countries, standard Quickenerp tax/fiscal-position configuration (Accounting course) is the mechanism to use instead.
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