# Avalara ## Avalara Overview Avalara is a 3rd party tax compliance software that can be used to dynamically assign tax codes based on Order and Yard Locations, Entity Use Codes and External Avalara Settings. Fast-Weigh sends a request to Avalara with the payload listed below to determine the Fast-Weigh Tax Code that needs to be applied: ``` code = $"{transactionNumber}"; type = $"Sales{transactionType}"; date = transactionDate.ToString("yyyy-MM-dd"); customerCode = customerID; commit = "true"; description = $"Sales {transactionType} for {customerID}"; purchaseOrderNo = poNumber; lines = new List(); ``` This request is only triggered by 2 processes in Fast-Weigh: 1\) A New Order-Product is added to an Order 2\) When unbilled Tickets are assigned to a Batch on the New Billing Screen ### Non-Exempt Tax Process: {% hint style="info" %} If there are no exemptions such as an entity use code or an external rule then the following applies: {% endhint %} Avalara references the FROM/TO Latitudes and Longitude to determine if tax is applied at the pickup or the destination and what rate to use accordingly. Fast-Weigh always sends the Yard Latitude and Longitude for the FROM Location. Setting a Lat/Long is required for all yards for the integration to work. Optionally, a Lat/Long can be set at the order level in Fast-Weigh. This will be sent as the TO Location. ### Tax Exemption Options: 1\) Set an entity use code on the order. Entity use codes are initially setup in portal settings. Once created, they can be assigned as defaults to customers. If a customer has a default entity use code, new orders for that customer will inherit the entity use code. Fast-Weigh allows for the default to be overridden by any other use code (including "none") at the order level. 2\) In Avalara: Define a Customer exemption 3\) In Avalara: Define a specific PO for a specific customer exemption 4\) In Avalara: Define a Product exception ### First Time Setup: Portal Settings > Configure External Tax Service Set the Service to Avalara Account ID: rest User: Avalara Admin Account Password: Avalara Admin Account Entity Use Codes: | A | Federal Government | U.S. only | | ------- | ------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | B | State Government | - | | C | Tribal Government | - | | D | Foreign Diplomat | - | | E | Charitable/Exempt Organization | - | | F | Religious Organization | Effective January 1, 2018, the Streamlined Sales Tax Project (SSTP) split educational and religious organizations into 2 separate categories. Previously, Entity/Use Code F represented both religious and educational organizations. This change was effective in Avalara products on April 1, 2018. | | G | Resale | - | | H | Agricultural | Use tax codes PA020120, PA020122, PA020123, and PM020400 with this code. These codes apply state-mandated reduced rates for manufacturers in New Mexico. This code produces a fully taxable result in states where there's no reason for exemption or a reduced rate. | | I | Industrial Prod/ Manufacturers | Use tax codes PM020704 and PM020700 with this code. This will apply the state-mandated reduced rates for manufacturers in Alabama, Louisiana, and Mississippi. This code produces a fully taxable result in states where there's no reason for exemption or a reduced rate. | | J | Direct Pay | - | | K | Direct Mail | - | | L | Other/custom |

Other exempt reasons such as,

| | M | Educational Organization | Effective January 1, 2018, the Streamlined Sales Tax Project (SSTP) split educational and religious organizations into 2 separate categories. Previously, Entity/Use Code F represented both religious and educational organizations. This change was effective in Avalara products on April 1, 2018. | | N | Local Government | U.S. only | | P | Commercial Aquaculture | **Canada only** | | Q | Commercial Fishery | **Canada only** | | R | Non-resident |

Canada only

For use by Canadian registrants receiving a Drop-Shipment Certificate from a registered consignee pursuant to Subsection 179(2) of the Excise Tax Act.

| | Taxable | Override Exemption | Using Taxable as the entity forces a typically exempt customer to pay taxes. This is how you can prevent an exemption certificate by applying to a sale. |