Connect your Avalara account to the AvaTax app

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, 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, open your Avalara AvaTax settings, and uncheck Send documents to AvaTax.
  • Orders made while Shopify Payments 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.

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.

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.
  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 page, then contact Shopify Plus Support.

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

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