Item Tax Codes
Explore how to manage item tax codes using the AvaTax API. Learn to create custom tax codes, update existing ones, and fetch tax code details to enable precise tax calculations for business transactions within Avalara.
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Overview
Tax codes reference the set of rules and regulations that define how a particular item is to be taxed. We provide a tax code and the corresponding item code when recording a transaction in Avalara. Avalara calculates the tax for the recorded transaction based on these two codes.
The {{BASE_URL}}/companies/{{companyId}}/taxcodes/ endpoint in Avalara helps us create these tax codes. We can also use pre-defined tax codes available in Avalara to calculate the tax for an item correctly according to the jurisdictions the item falls in. Here’s a list of some of these tax codes:
Tax Codes
Item Category | Item Subcategory | Item Type | Tax Code |
Clothing | Clothing business-to-consumer | Athletic shoes | PC040402 |
Clothing | Clothing business-to-consumer | Formal wear | PC040118 |
Information technology | Hardware | Laptops | PC080110 |
Information technology | Software | Retail computer software | DC020000 |
Information technology | Data and web | Web design, maintenance, or management services / individual use | SW050000 |
Freight | Delivery | Delivery by company vehicle | FR010000 |
Creating tax codes
We use the {{BASE_URL}}/companies/{{companyId}}/taxcodes endpoint and the POST method to create a tax code using the AvaTax API. By creating our tax codes, ...