Avalara Managed Sales Tax

Chargify provides the ability to automatically collect US, Canada and Australia sales tax using the Avalara AvaTax tax service. You define the areas that you are responsible for collecting taxes in, and Chargify does the rest automatically.

Configuring Avalara Sales Tax

Step 1: Set your Tax Origin Address

To begin, make sure that you have a “Tax Origin Address” defined. This is your business’s address. Avalara needs a full adress on file to calculate the correct tax rates.

Step 2: Configure your Taxable Regions

Next you will define your Taxable Regions. These regions inform Chargify where your company wishes to calculate and report tax.

Step 3: Enable Avalara Sales Tax

Finally, click the ‘Enable’ button in the Avalara Sales Tax section. Note that doing so will disable any existing custom taxes that you have.

Marking Products and Components as Taxable

Unless otherwise specified, all products and components are NOT eligible for taxes. Once a tax is defined, you will need to update your existing products and components so that they can be taxed. To do this, edit the product or component and check the ‘This product is subject to taxes’ checkbox.

You will also want to ensure that the “Require Shipping Address at signup?” checkbox is also checked for each product.

Note that Avalara needs a full address on file in order to calculate taxes.

Coupons and Taxes

When applied in conjunction, taxes are applied to the total cost of the subscription AFTER the coupon adjustment has been accounted for.

Tax History

You can view and export a history of all tax charges by clicking the ‘View Tax History’ button at the top of the Taxes page.

Here is a sample of what information the tax history page displays:

The following is displayed:

  • ID: ID of the transaction that the tax applies to.
  • Assessment Date: The date the tax was charged.
  • Collection Date: The date the tax was paid for (will be blank if the payment failed).
  • Subscription ID: ID of the Subscription.
  • Tax: The name of the tax applied.
  • Tax Rate: The rate of this tax.
  • Amount: The tax amount.
  • Jurisdiction: The jurisdiction of the tax.