Pelcro integrates with Avalara's AvaTax, a cloud-based sales tax automation software. AvaTax ensures accurate tax calculations at checkout, considering factors like product taxability, customer location, and current tax regulations. This integration eliminates the need for manual tax calculations and reduces the risk of errors, saving you time and money.

Benefits of Using Pelcro with AvaTax

• Automated Sales Tax Calculations: AvaTax eliminates the need for manual tax calculations, reducing the risk of errors and saving you time.
• Accurate Tax Rates: AvaTax considers factors like product taxability, customer location, and current tax regulations to ensure you collect the correct amount of sales tax.
• Reduced Compliance Risk: AvaTax helps you stay compliant with ever-changing tax regulations.
• Simplified Workflow: The integration automates sales tax calculations within Pelcro, streamlining your checkout process.

Getting Started with AvaTax Integration

Prerequisites

Before integrating Pelcro with AvaTax, you'll need an AvaTax account. Here's how to get started:

• Sign Up for AvaTax: Visit the AvaTax website at https://www.avalara.com/us/en/index.html and follow the on-screen instructions to create your account.
• For assistance with signing up for AvaTax, consider contacting your Pelcro account manager. They may be able to provide additional guidance or connect you with the AvaTax sales team.

Configuring Avatax on Pelcro

• Navigate to Tax Management under integrations section as shown below.

• You will be navigated to the tax management screen where you can find Avatax integration.

• Upon clicking on Avatax integration, you will be navigated to the Avatax status screen where you can manage your Avatax settings from there.

• Upon clicking on "Manage Avatax," you will be directed to the necessary Avatax configuration steps as follows:
  • Adding your Avatax Credentials

• Selecting Company and Origin Address
  • Choose the company for which you want to configure Avatax.
  • Select the origin address for this company. This is the location from where your products or services are shipped or provided.

• Enabling or Disabling Avatax Functionalities:

  • Enabled: When enabled, invoices created in Pelcros will automatically be sent as transactions to Avatax for detailed tax calculation and reporting.
  • Disabled: When disabled, Avatax will still be used to calculate tax rates for invoices, but no transactions will be created in Avatax.
  
  

After successfully completing the above configuration steps, Avatax will be enabled on your account and taxes will be calculated on the invoices as shown below.

Considerations

For tax to be calculated and applied to any subscription, the following criteria must all be met:

• Origin address must have been selected in AvaTax settings.
• Valid customer shipping address must be provided in order for taxes to be calculated.
• A sales nexus in the same country and state/region/province as the customer shipping address must exist in AvaTax. A nexus indicates a place where your company is legally obligated to collect and remit transactional taxes.
• When creating your product on Pelcro, you need to configure it to have the customer shipping address required. You can also set an AvaTax code to control the taxability of the product if needed.

• AvaTax is not supported yet for ecommerce orders and standalone invoices.