Avalara Integration


Introduction

Avalara Integration in Zoho Subscriptions is an alternative to the manual method of determining and associating sales tax rates to your transactions.

With the new Avalara integration, Zoho Subscriptions not only automates your final calculations but also fetches the right tax rates and exemption reasons for all your transactions.

Integration

Prerequisites

  1. Avarala can be enabled only if Accrual is selected as the organization’s Tax Basis.

  2. Make sure you have an account in Avalara. You can create tax codes for your organization there and use these later in Zoho Subscriptions.

  3. Enter the credentials required to set up the integration here. If no company code is provided, the default company in Avalara will be integrated with Zoho Subscriptions.

  4. While entering your Avalara credentials (such as Account Number, License Key and Company Code), select Development against Mode if you have a sandbox account in Avalara. If not, select Production.

Setting up integration

Taxes and tax rates

Plans

With Avalara integrated, you will need not to manually mark a plan either Taxable or Non taxable. Instead, simply enter Tax Code for each plan. To do this,

Once a tax code is associated in Zoho Subscriptions, Avalara will use a combination of this and the address of the customer to determine the taxability status of the plan (tax exempt, partially or fully taxable) in your customer’s location.

Customers

Create contact

Similar to plan creation, you no longer need to research a customer’s address and taxability status and manually associate a tax rate. It will be automatically fetched based on the parameters you specified during creation as explained below,

Note : You can change the entity code, exemption number or contact address anytime within a transaction, right from their respective fields before saving it.

Transactions

Sales tax in Zoho Subscriptions is calculated on entities like Invoices and Credit Notes. When a subscription is created for a customer, Avalara does the following :

You can always change the plan and customer tax criteria while creating a new transaction as well. This is handy for isolated transactions where you might need to make a normally taxable customer tax exempt, or you’re shipping to a different address for a regular customer.

Other Actions

Update Credentials

To update your avalara credentials,

Update Credentials

Disable Avalara Integration

To disable the avalara integration completely,

Disable integration

Avalara integrations can also be disabled at the following levels,

Also, you can choose the address for which the tax is applicable by clicking on Change against the option Applicable For. Select either Use Billing Address or Use Shipping Address and click Save.

If a subscription is created and an invoice is raised after changing this setting, the address used for tax calculation on sales transactions will be based on the chosen address.

Note : Avalara integration cannot be disabled if any active subscription uses Avalara. You have to cancel the subscription manually and try again.

Disable integration at different levels

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