Automatic Tax Calculation with Avalara AvaTax
BigCommerce has integrated with Avalara AvaTax to automatically determine sales tax rates at checkout. Avalara AvaTax makes setting up and calculating sales tax for your store much easier to manage.
Currently, automatic sales tax calculation is only available to merchants operating inside the United States or Canada. Merchants collecting taxes outside the United States or Canada will need to set up taxes manually.
Set up your Ship From address. In order for automatic tax calculation to quote properly, there needs to be an origin address in Store Setup › Shipping.
Enabling Automatic Sales Tax Calculation with Avalara AvaTax
To get started with automatic sales tax calculation, go to Store Setup › Tax.
1. Next to Tax Calculation, click Automate my Tax.
If you already have an Avalara AvaTax account, click the Log in here link. Otherwise, fill out the required information. The address provided will be considered where you have nexus or responsibility to collect sales tax.
What if I have nexus in more than one state? If you are responsible for collecting sales tax in multiple states, you will need to set up your local jurisdictions on your Avalara AvaTax account. See Assigning Local Tax Jurisdiction below for more details.
2. Once the account is created, the page will show options for changing the Tax Label display and a toggle to enable or disable Document Submission.
3. At this point, the store is set up for basic automatic tax calculations. To adjust your Automatic Tax Calculation, log into your Avalara AvaTax account to set up local jurisdictions, tax exemptions, and more.
Assigning Local Tax Jurisdiction
If you have nexus in multiple states or local jurisdictions, the additional jurisdictions need to be adjusted from within your Avalara account. To learn more about setting up local jurisdictions, see About Local Jurisdictions on Avalara’s support site.
Assigning an Avalara Product Tax Code to a Product
Avalara product tax codes can be assigned to products one at a time via the control panel, or in bulk via a CSV product import.
1. Go to Products › View.
2. Click on the Product Name to open the Edit a Product page.
3. Enter the code in Avalara Product Tax Code. Click Download Tax Codes to get a full list of all product codes from Avalara’s website.
4. Save your changes.
Assigning an Avalara Tax Exempt Category to a Customer
Avalara tax-exempt categories can be assigned to customers one at a time via the control panel, or in bulk via a CSV customer import.
1. Go to Customers › View.
2. Click on a customer’s name to edit their information.
3. For Tax Exempt Category, enter the appropriate customer type letter code or category name. Category names are defined in your Avalara control panel.
4. Save your changes.
Tax Exempt Category Codes
A - Federal government (United States)
B - State government (United States)
C - Tribe / Status Indian / Indian Band (both)
D - Foreign diplomat (both)
E - Charitable or benevolent org (both)
F - Religious or educational org (both)
G - Resale (both)
H - Commercial agricultural production (both)
I - Industrial production / manufacturer (both)
J - Direct pay permit (United States)
K - Direct mail (United States)
L - Other (both)
M - Not Used
N - Local government (United States)
O - Not Used
P - Commercial aquaculture (Canada)
Q - Commercial Fishery (Canada)
R - Non-resident (Canada)
Verifying Tax Rates
You can use Avalara's sales tax rate map to confirm proper tax rates are being calculated for a particular region. If there is any inconsistency between the rate reported at Avalara's calculator and what is reported by your store, please contact our support team for further investigation.
- By default, BigCommerce merchants are set up with a free Avalara AvaTax account. Avalara does offer services you can pay for, but they are not required for basic sales tax calculation.
- Your company code is created by you. It can be whatever you like, for example, a number, an abbreviation, or an acronym. It is required.
- Only orders between Canada and the United States will be calculated through Avalara. Customs, duties, taxes, and fees for other international transactions are not currently supported in BigCommerce’s integration with Avatax integration.
- A fallback tax rate of 10% happens when there is a failure to connect to the automatic tax calculation service. If there is no shipping origin address set up in the Shipping Manager or the address could not be validated. Check the Shipping Manager and ensure there is a valid address set as a Shipping Origin. Check status.bigcommerce.com to see if there are any service performance issues with Avalara's service.
- You can check the status of servers that handle tax calculation by going to status.bigcommerce.com to see if there are any service performance issues with Avalara's service. If there are no issues with performance, check the following:
- If the tax rate is not calculating as you expect, login to Avatax and go to Settings to confirm you have selected the correct jurisdictions. If these are all correct, contact Avalara support
- Compare the tax between your Avatax account and BigCommerce. If these are different, contact BigCommerce support to report it.