Connect your Avalara account to the AvaTax app

Shopify Plus

Avalara AvaTax is a paid service available for Shopify Plus plans only. If Avalara is part of your plan and Tax services doesn't appear in your Tax settings page, then contact Shopify Plus Support.

To use Avalara AvaTax, you need to install the Avalara AvaTax app in your Shopify admin, and then either connect the AvaTax app to an existing Avalara production or sandbox account, or create a new Avalara production account.

Considerations for using Avalara AvaTax

Before you install and connect Avalara AvaTax to Shopify, review the following considerations.

• The Avalara AvaTax app supports collecting VAT, but it does not support VAT exemptions. Avalara can't collect VAT IDs, which are required for exemption reporting and returns.
• If you issue a refund in Shopify without also selecting an item or restock quantity, then Avalara AvaTax doesn't create return documents.
• Partial refunds are not reported in Avalara AvaTax. If you issue a partial refund, then reporting must be adjusted manually.
• Some third-party services report to Avalara, such as eBay, while others do not, such as Amazon or Facebook. Reporting from a third-party service might result in duplicate order information in Avalara AvaTax. If you have a service that reports orders to Avalara AvaTax, then you can change your settings to prevent Shopify from also reporting those orders. In your Shopify admin, go to Settings > Taxes and duties, open your Avalara AvaTax settings, and uncheck Send documents to AvaTax.
• Avalara functions only in the Shopify checkout, and will not work with apps that replace the checkout. This includes Facebook and Instagram by Meta app.
• Orders made while your payment gateway is in test mode are calculated by Avalara AvaTax, but aren't committed to Avalara and don't appear there.

Install and connect Avalara AvaTax

If you have an Avalara Sandbox account, also known as a development account or a test account, then you can use it to connect to the AvaTax app.

Connect the Avalara AvaTax app to your Shopify admin in either of the following ways:

• Use an existing Avalara account.
• Create a new Avalara account, and then connect the AvaTax app to your Shopify admin.

Connect an existing Avalara account

If you have an existing Avalara AvaTax account or an existing sandbox account, you need your Avalara Account number and License key.

• Your Account number is listed in the upper right corner of the Avalara AvaTax admin console.
• Your License key is provided to you by Avalara in an email. If you can't find the existing license key, then from the Avalara AvaTax admin console, go to Settings > License and API Keys, and then select Generate License Key.

Caution

If you already use a license key to connect a business application to AvaTax, then generating a new license key breaks the connection to all applications. To restore the connection, enter the new license key in the AvaTax settings for each business application.

Steps:

1. From your Shopify admin, go to Settings > Taxes and duties.

2. In the Tax services section, click Install app.

   If Tax services doesn't appear on your Taxes and duties page, then contact Shopify Plus Support.

3. Click Connect an existing account.

4. Enter your Avalara Account number and License key.

5. Click Save.

Create and connect a new Avalara account

Steps:

1. From your Shopify admin, go to Settings > Taxes and duties.

2. In the Tax services section, click Install app.

   If Tax services doesn't appear on your Taxes and duties page, then contact Shopify Plus Support.

3. Click Create account.

4. Verify that the information on the form is correct.

   Shopify creates a default Company code for your store. If you want to change it, then enter the new code in the text field.

5. In the Security section, create a new password for your new Avalara AvaTax account.

   Each of your passwords should be unique. Don't use the same password for more than one account, even if the accounts are related.

6. Click Create account.

After you install and connect Avalara AvaTax

After you connect your account, do the following:

• Set up your tax codes. Tax codes identify the category that a product belongs to, and determines the tax rules that apply to a product based on the location in which it's sold.
• Set up your Shopify Tax settings, even though you use Avalara AvaTax. If Avalara AvaTax is temporarily unavailable, then your Shopify tax rates are used to calculate the taxes for your orders.

Deactivate Avalara AvaTax

If you don’t want to use Avalara AvaTax in your Shopify store, then deactivate the service.

Caution

Deactivating Avalara AvaTax in the Shopify admin does not remove it from your Shopify Plus plan or cancel your Avalara AvaTax account. If you want to remove the Avlara AvaTax service from your Shopify plan, then contact Shopify Plus Support. If you want to cancel your Avalara AvaTax account, then contact your Avalara customer account manager.

When you deactivate Avalara AvaTax, your Shopify store stops using Avalara AvaTax to calculate your taxes and starts using Shopify's built-in tax engine.

Steps:

1. From your Shopify admin, go to Settings > Taxes and duties.
2. In the Tax services section, click Deactivate.

After you deactivate the Avalara AvaTax app, your taxes are calculated using Shopify's built-in tax engine.

Reactivate Avalara AvaTax

Avalara must be a part of your Shopify Plus plan to reactivate it. If Tax services doesn't appear on your Taxes and duties page, then contact Shopify Plus Support.

1. From your Shopify admin, go to Settings > Taxes and duties.
2. Click Reactivate and review your settings.