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Avalara AvaTax is a sales tax software that automates tax calculations and the tax filing process. Avalara provides real-time tax rates from more than 12,000 taxing jurisdictions (Shopify’s taxes are based on ZIP codes).

Note: This integration is only available for Shopify merchants who installed ReCharge before November 2nd, 2020, and are using the ReCharge Checkout.

Status and eligibility

You will need to be on the ReCharge Pro plan and Shopify Plus to access Avalara. The Avalara integration is currently in beta.

Supported features

  • Get accurate and up-to-date tax codes from more than 12,000 jurisdictions.
  • Fine-tune a set of tax rules. 
  • Create accurate reports of your taxes.
  • Use tax overrides for each product you sell in Shopify.

Enabling Avalara

Once you are on the ReCharge Pro plan, reach out to the ReCharge Support team to enable the beta integration on your ReCharge store.

How it works

Avalara Avatax is embedded in Shopify Plus and can be enabled by any Shopify Plus merchant. Enabling this integration involves creating tax codes in Avalara and then associating them with product variants in Shopify. When used with ReCharge's Avatax integration, both one time purchases through Shopify's checkout and subscription purchases made via ReCharge checkout, UI, or API will reference these tax codes in Shopify via the variant API.

First charge at checkout/UI/API

ReCharge references the Avalara tax code from Shopify (which is informed by Avalara Avatax) for a specific purchase and then applies the correlated rate based on this specific Avalara tax code.

Recurring charges

ReCharge references the Avalara tax code from the queued charge JSON for a given subscription. These tax codes are updated if the charge is regenerated, and again each time a new charge is generated. Keep in mind, you must regenerate existing queued charges if you want them to reference any tax codes that were updated after they were generated.

Reporting

Merchants who use the ReCharge/Avalara integration can leverage their tax reporting features with full confidence that subscription purchase information will be accurate. This is because ReCharge creates orders in Shopify with tax information and Shopify creates invoices in Avalara based on these orders.

Connecting stores to one Avalara account

This is possible, you would just need to create two companies within the Avalara dashboard and have each store connected with each store, so it will be one account ID but two different companies within the dashboard. 

Product exemptions

Tax exemptions set at the product level in Shopify by default do not currently work as expected. To set up a tax-exempt product you can use the custom tax code ON030000 as mentioned in this Avalara article.

Warning: Importing ReCharge data to Avalara before enabling the integration may result in duplicating the data on the Avalara side. We do not suggest importing the data before the integration is enabled.
Avatax and VAT does work with ReCharge.  VAT address needs to be  set up in tax sales setting and make sure the Shopify and ReCharge integrations are enabled. When enabled, we calculate according to the VAT rate for that region.

Support for Avalara

If you have any questions or require more information about the feature set, reach out to the Avalara support team. If you require troubleshooting assistance, you can reach out to ReCharge support.  

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