Question

Multiple Tax Zones for One Vendor Tax Agency

  • 24 January 2023
  • 6 replies
  • 28 views

I am lookin to see if we create one Vendor Tax Agency and put multiple tax zones for every state as well as zip codes it that would work correctly.  I know there are services out there i.e. Vertex but we are trying to do this internal and manually. 

 

Thank you.


6 replies

Userlevel 6
Badge +4

Hi @joeroth24 

The system will let you do it but I think you would lose a lot of functionality related to tax reports. I would highly recommend a service like AvaTax or Vertex.

Best,

David Eichner, CPA

Userlevel 7
Badge +11

Hello,

If not using a service, I recommend a separate Tax Agency for every state in which you will need to report sales tax.

Depending on your merchandise, different states have different reporting requirements, such as for solar energy materials or for dangerous goods like fireworks.

Yes I am able to do separate tax agencies but when it comes to the Sales / Customer with locations how do you assign the correct zone - automatically to the correct state etc.  I have hundreds of ship location going to different states, that is my biggest issues, the tax zone has to be assigned per the state/zone that is created.  We do currently use Avatax but only for two branches the other branches / customer class need to be different.  We are looking into Vertex for cost...

Userlevel 7
Badge +11

Hello,

I had a client reporting for 4 states, and for them I made a Generic Inquiry that listed all the Zip Codes (From the Zip Codes tab of Tax Zones screen) with a zip code filter at the top. Our client used the GI to manually look up a proper tax zone for each new customer by zip.  In this case, their volume of new customers was manageable and the solution fit their budget.

If you need zone assignment to happen automatically, see above where services Vertex and Avalara are recommended, or consider the costs of custom development for automatic zone assignment by zip code.

 

Yes we are waiting the cost for Vertex which seems to be the way to go.  Thanks.

Does anyone know if you can do a report setting and group on the Avalara Tax agency?  I am working in 2022 R1 sandbox and I am running into errors… I was able to get IL tested and working but the Avalara is throwing this error

 

Error: Warning
Error: :
Error: There are transactions for tax(es) AK STATE TAX,AL STATE TAX,AR STATE TAX,AU VAT,AZ STATE TAX,BS VAT,CA CITY TAX,CA COUNTY TAX,CA GST,CA SPECIAL TAX,CA STATE TAX,CN VAT,CO STATE TAX,CT STATE TAX,DC STATE TAX,DE STATE TAX,FL STATE TAX,GA STATE TAX,GB VAT,GU STATE TAX,HI STATE TAX,IA STATE TAX,ID STATE TAX,IL CITY TAX,IL COUNTY TAX,IL SPECIAL TAX,IL STATE TAX,IN STATE TAX,IN VAT,JP VAT,KR VAT,KS STATE TAX,KY STATE TAX,LA STATE TAX,MA STATE TAX,MD STATE TAX,ME STATE TAX,MI STATE TAX,MN STATE TAX,MN VAT,MO STATE TAX,MS STATE TAX,MT STATE TAX,MU VAT,MX VAT,NC STATE TAX,ND STATE TAX,NE STATE TAX,NH STATE TAX,NJ STATE TAX,NM STATE TAX,NO VAT,NV STATE TAX,NY STATE TAX,NZ VAT,OH STATE TAX,OK STATE TAX,OR STATE TAX,PA STATE TAX,PR STATE TAX,RI STATE TAX,SC STATE TAX,SD STATE TAX,SE VAT,TN STATE TAX,TX CITY TAX,TX COUNTY TAX,TX SPECIAL TAX,TX STATE TAX,UT CITY TAX,UT COUNTY TAX,UT SPECIAL TAX,UT STATE TAX,VA STATE TAX,VT STATE TAX,WA STATE TAX,WI STATE TAX,WV STATE TAX,WY STATE TAX that could not be included into report.
Error: Please check tax configuration.

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