Let’s create a subscription, generate an invoice, and see how Avalara records the tax collected in the process.
- Choose a taxable product from the All Products view.
- Scroll down to find the web checkout button next to the plan you wish to test. Let’s go with the SaaS monthly plan with a USD 100 monthly flat fee and USD 10 per unit monthly fee.
- Purchase this plan through web checkout.
- Click on the Customers module to find a new customer created.
- Scroll down to the invoice tab to find a new invoice created as a result of our purchase. Since this invoice is paid it should show up in our Avalara account with a committed status.
- Inside your Avalara account, click on Transactions.
- The invoice just generated was paid with relevant tax collected. It shows up in your taxation engine with a committed status. Unpaid invoices are listed as "Uncommitted".
8. Click on the invoice to see more details. These include "Ship From" (your company address) and "Ship to" (the customer's shipping address), as well as, a detailed breakdown of the charges and taxes associated with this invoice.
Note that the system will not collect this tax if the customer's address does not match the region in which the tax code is applicable.In this way, this integration automatically keeps track of all transactions and relevant taxes collected so you can stay tax-compliant without lifting a finger.
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