Taxes
Avalara use tax in Purchasing—Early Adopter
Subscribers to Avalara AvaTax can now apply use taxes in Purchasing transactions. Use tax is applied when sales tax is not collected or differs from the tax owed in the jurisdiction where goods are used. When you enable Avalara use tax, you can apply use tax as a standalone tax, or to offset sales tax when partial taxes have been paid on out-of-state purchases.
Key benefits
-
Streamline Purchasing workflows: Automatically determine use tax for out-of-state or untaxed purchases in your Avalara-enabled Purchasing transactions.
-
Enhance visibility into tax calculations: Access clear breakdowns of vendor tax and use tax in transaction details.
-
Improve tax accuracy and compliance: Ensure correct accounting treatment by posting use tax to the appropriate expense account.
How it works
You can enable use tax in Avalara configuration, so that Sage Intacct automatically calculates use tax on purchasing transactions that use Avalara for tax determination. The journal you select during configuration captures the use tax portion separately from the main transaction postings to ensure accounting compliance.
When you enter a purchasing transaction, you can include vendor-charged tax in the subtotal section. Avalara then calculates the difference between the vendor tax and the tax owed in the jurisdiction of use, determining the use tax amount for you.
When this matters
-
You purchase goods in one state or province but use them in another jurisdiction with different tax rates.
-
Vendors do not charge sales tax at the time of purchase, requiring you to self-assess use tax.
-
Your tax or accounting team needs automated tax calculations integrated into Purchasing workflows.
Join the Early Adopter program
We invite you to explore the new capabilities of Avalara use tax in Purchasing as an early adopter.
Your insights are incredibly valuable. Sign up using the form below for an opportunity to get early access and help shape the future of this feature.
If you’re selected, you’ll receive an email with program details, expectations, and next steps. You’ll work closely with the Product Manager and provide feedback throughout the program to help improve the experience.
Sign up for Early Adopter access here.
Permissions and other requirements
| Subscription |
Avalara AvaTax Purchasing Taxes |
|---|---|
| Regional availability |
|
| User type |
Business |
| Permissions |
Purchasing
Taxes
|
