Automate Taxes with Avalara

This content is only relevant for native store.

To determine which eCommerce solution you are on, see How do I know if I am using Native eCommerce or Third Party eCommerce?

Taxes can be convoluted and confusing, but they don’t have to be, automate them with Avalara, our tax compliance partner. Their software, Avalara AvaTax, integrates seamlessly and offers a variety of benefits.

Here are some key benefits:

• They stay up-to-date on tax rates so you don’t have to.

• Tax rates are based on geolocation, item taxability, new legislation, tax regulations, and more.

• They can calculate rates for a variety of tax types, including value-added tax (VAT), sales and use tax, consumer use tax, and more.

• They offer global tax calculations and compliance for cross-border sales.

• When required, taxes are calculated automatically for shipping.

• Orders automatically sync in your Avalara account, this includes refunds (syncing can be disabled, see the Un-syncing Orders section for details).

For detailed information on Avalara and AvaTax, see Avalara Calculations.

To learn how to configure automated taxes, see the following video and written instructions.

To configure automated taxes:

1. In the side panel, click Sell Online.

2. Click Store Management, then click Set up taxes.

3. (Optional) If you are not on the advanced plan or higher, click on the Upgrade to automate tax button. From here you will be prompted to upgrade your plan.

4. Click Get started.

5. Fill out the form to create an Avalara account. If you already have an Avalara account, click Log in.

6. After logging in or creating an Avalara account, in your store, on the tax screen, click Add or Manage Taxes. This will take you to your Avalara account in a new window or tab. For detailed information on setting up taxes in Avalara, see AvaTax.

7. Once regions are set in Avalara, they will appear on the tax screen as read only in Store Management. Any changes you would like to make to your taxes will also be done through your Avalara account.

   Note

   Changes to tax regions will be implemented on the live store upon saving in Avalara (republishing is not needed).

Syncing and Statuses of Orders

Unless manually changed, all orders will sync with Avalara (this includes refunded orders). In Avalara there are also statuses, some of which will be specific to just Avalara. For a full list of statuses, see Avalara’s Transaction statuses page.

Un-syncing Orders with Avalara

To un-sync orders:

1. In the side panel, click Sell Online.

2. Click Store Management, then click Set up taxes.

3. Click the three horizontal dots () next to Add or Manage Taxes.

4. Click Disable transactions recording in Avalara.

How to Switch to Manual Taxes

You can also switch back to manual taxes. This will disconnect your Avalara account and result in various implications.

The implications are:

• Future purchases will not be reported in Avalara.

• Refunds will not be reflected in Avalara, this includes refunds processed for purchases made while automated taxes were on.

• Tax regions set up with automated taxes will no longer be available in the store when using manual taxes (you will need to set up manual taxes).

• Taxes will no longer be auto calculated at checkout for your customers (you need to set up manual taxes).

To switch to manual taxes:

1. In the side panel, click Sell Online.

2. Click Store Management, then click Set up taxes.

3. Click the three horizontal dots () next to Add or Manage Taxes.

4. Click Switch to manual taxes.

5. Manual taxes will now be active, including any tax zones that were set up prior to switching to automated taxes.