> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sequencehq.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Avalara

> Integrate with Avalara to automatically calculate sales tax for invoices.

![Avalara](https://mintcdn.com/sequence/AaBHfWeLf5Am1S8n/images/integrations/covers/avalara.png?fit=max\&auto=format\&n=AaBHfWeLf5Am1S8n\&q=85\&s=51ec555fa83262dc50401c43cfd0450a)

Integrate with Avalara to ensure your invoices are accurate and compliant with all state and local sales tax regulations.

### Capabilities

 **Automated tax calculations**: Calculate accurate sales tax for every invoice\

 **Up-to-date tax rates**: Automatically account for the latest tax rates and changes\

 **Prevent tax errors**: Avoid manual tax calculation errors and ensure compliance\

 **Avalara address validation**: Leverage Avalara's built-in customer address validation\


> [!NOTE]
>
> To use this connector, you need to have an Avalara account. If you don't have an Avalara account yet, reach out to our team to make use of our **Sequence & Avalara discount**.

### Connector setup

> [!NOTE]
>
> Before integrating with Avalara you must ensure that your customers in Sequence have unique email addresses.

**1. Connect to Avalara**

> [tab] View connector
>
> Go to Connectors, find Avalara and select "Manage integration".
>
> ![Connector setup](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_1.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=587f21954258b2589576c2ad7a21adeb)

> [tab] Authenticate
>
> Enter your Avalara Account ID and License key and connect (you can locate these under Settings > License and API keys in your Avalara account).
>
> ![Enter Avalara credentials](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_2.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=c2f59154213f0de1871dfcff3e012eb3)

> [tab] Select Avalara company
>
> Once connected, select the company to use from your Avalara account.
>
> ![Select Avalara company](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_3.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=91224e076eb1fc7e36f41ce1d3edf1a4)

**2. Assign Avalara tax codes**

> [tab] View tax categories
>
> Start by assigning Avalara tax codes to product tax categories in Sequence (go to Settings > Sales Tax). Once Avalara is connected, tax categories are managed via Avalara tax codes. You can no longer manage tax categories with custom rates.
>
> ![Tax categories](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_4.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=ed3fbba03e6d2de9d533b49f8a9bf806)

> [tab] Assign tax code
>
> For each tax category in use, assign a corresponding Avalara tax code.
>
> ![Tax categories](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_5.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=eaae54c0c47029c90562de0f449e9f5d)

> [tab] Look up tax code
>
> You can search for and directly copy over Avalara tax codes from Avalara's website.
>
> ![Tax codes in Avalara](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_5_1.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=6279bdd0d0e9da55a09bc73a1229c07f)

> [tab] Add tax code
>
> Once entered, Sequence will look up and validate the tax code.
>
> ![Confirm tax code](https://mintcdn.com/sequence/AaBHfWeLf5Am1S8n/images/integrations/avalara/avalara_7.png?fit=max\&auto=format\&n=AaBHfWeLf5Am1S8n\&q=85\&s=ccc8965d5a41e0f5848bd83cb49bbe81)
>
> Once assigned, the tax category is managed via an Avalara tax code.
>
> ![Confirm tax code](https://mintcdn.com/sequence/AaBHfWeLf5Am1S8n/images/integrations/avalara/avalara_7_1.png?fit=max\&auto=format\&n=AaBHfWeLf5Am1S8n\&q=85\&s=6b5d84f3d03c03bf4914b2076dcbf369)

**3. Add tax categories to products**

In your product catalogue, assign product tax categories to products. In order to automatically calculate sales tax for a given product, its tax category must be mapped to an Avalara tax code.

![Confirm tax code](https://mintcdn.com/sequence/AaBHfWeLf5Am1S8n/images/integrations/avalara/avalara_8.png?fit=max\&auto=format\&n=AaBHfWeLf5Am1S8n\&q=85\&s=266ba80c6cecc8aa41b0ede3df0fc0a7)

 You're now set up to automatically calculate sales tax on invoices via Avalara.\\

### Calculating sales tax with Avalara

Once you're connected to Avalara, Sequence will calculate sales tax for every draft invoice via Avalara. Whether and how tax is calculated depends on the following factors:

* Your merchant location in Sequence (Settings > Merchant > Address)
* Your customer's location & tax status
* Your tax configuration and tax exposure as reported to Avalara
* The Avalara tax code assigned to a sold product

> [tab] Invoice calculation
>
> Tax is automatically calculated and added to the invoice.
>
> ![Tax categories](https://mintcdn.com/sequence/AaBHfWeLf5Am1S8n/images/integrations/avalara/avalara_9.png?fit=max\&auto=format\&n=AaBHfWeLf5Am1S8n\&q=85\&s=d59cc3a223f30dbe034c9063e755574d)

> [tab] Invoice PDF
>
> ![Tax categories](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_10.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=2c2b7883e60078918f295987a23ab234)

> [tab] Avalara tax calculator
>
> If you're getting started with Avalara, you can use Avalara's tax calculator from the Avalara app to run through example sales tax calculations.
>
> ![Tax categories](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_11.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=77affa34b251ec39f5ceb4652c9bb120)

> [tab] Corresponding transaction in Avalara
>
> For each invoice, Sequence creates a transaction in Avalara that includes a detailed breakdown of the tax calculation. If you're using Avalara to file tax, you need to commit these transactions in Avalara.
>
> ![Avalara transaction details](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_12.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=84602de89f1c776c3136244a7b66ce0b)
>
> ![Avalara transaction details](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_13.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=f090c71628566680c45e721b285ab029)

### Customer address validation via Avalara

Once you're connected to Avalara, Sequence will validate a customer's billing address via Avalara. This is required to ensure sales tax is accurately calculated based on the customer's locale. For customers located outside of the US, Avalara only checks the country.

![Avalara address check](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_14.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=5fd00deefb9449cd387424fc214bcde0)

### Troubleshooting

> [accordion] Tax categories not mapped to Avalara tax codes
>
> If a billing schedule includes products with tax categories that have not been mapped to an Avalara tax code, you will be prompted to assign a tax code.
>
> ![Unmapped tax code](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_15.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=e62bf29d847055894d8e3e1c9c2f0f86)

> [accordion] Connecting to an Avalara Sandbox or Production account
>
> When setting up the connector, ensure you are connecting to the right Avalara account:
>
> * a Sequence Sandbox only connects to an Avalara Sandbox
> * a Sequence Production account only connects to an Avalara Production account

> [accordion] Incorrect merchant address
>
> Ensure that you have correctly configured your merchant address in Sequence. This address needs to match your company's address in Avalara.
>
> ![Merchant address in Sequence](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_16.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=868e0175d15d52176903fea4548a5f0c)

> [accordion] Account country mismatch
>
> For Avalara to successfully calculate tax, your Sequence account's country must match your Avalara company's country. If in doubt, reach out to our team.

### Frequently asked questions (FAQ)

> [accordion] Do Sequence products need to be synced with Avalara?
>
> No. Sequence's Avalara connector maps product tax categories to Avalara tax codes. When Sequence generates an invoice for a product, the assigned tax code is used to calculate tax via Avalara.

> [accordion] Can I use Avalara as a UK business?
>
> Yes.

> [accordion] How to commit transactions in Avalara?
>
> Go to Transactions and find the relevant transactions to commit. Transactions created by Sequence appear as draft. To commit transactions in bulk consider exporting and importing transactions.

> [accordion] How to test sales tax calculations?
>
> To test sales tax calculations, use the tax calculator tool from your Avalara account.
> Enter your company address, customer address and item to sell to view an example calculation.
>
> ![Test calculation](https://mintcdn.com/sequence/mEkhIlLyJGyDgjJd/images/integrations/avalara/avalara_17.png?fit=max\&auto=format\&n=mEkhIlLyJGyDgjJd\&q=85\&s=a8b1d81f32803bb2a91d489541c899d0)


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