Set up tax codes

Add a tax code for multiple tax engines

To set up a tax code that uses Multiple Tax Engines:

1. Click your username at the top right and navigate to Settings > Billing.
2. Click Setup Taxation Codes.
3. Click Add new tax code.
4. Enter the following information in the Basic Information panel:

• Specify a name in the Tax Code Name field to identify the tax code. This field is used to map the product charge.
• Select the Use Multiple Connect Tax Engines checkbox.
• Fill in the Mapping Formula tab with mapping rules that define how to select Multiple Tax Engines to handle tax calculation for various customer accounts. Refer to the Example tab to copy and customize pre-defined mapping formulas. For more information, see Tax Engine Mapping Formula.
• Click Save.

Note that if you want to configure Multiple Tax Engines that include Zuora Tax, you need to add a tax code for Zuora Tax first, and then click Edit in the upper right of the panel. Fill in the Mapping Formula tab with mapping rules that define how to select Multiple Tax Engines to handle tax calculation for various customer accounts, and click Save.

The table of tax rate details will display only if you add a tax code for Zuora Tax before you configure Multiple Tax Engines by setting up the mapping formula. The tax rate must be configured using the same tax code.

Add a tax code for Zuora Tax

To set up a tax code that uses Zuora Tax:

1. Click your username at the top right and navigate to Settings > Billing.
2. Click Setup Taxation Codes.
3. Click add new tax code.
4. Enter the following information in the Basic Information panel: 
   1. Specify a name in the Tax Code Name field to identify the tax code. This field is used to map to the product charge. 
   2. Select Zuora Tax from the Tax Engine list. This field selects which of your configured tax engines will be used to calculate tax rates for this tax code.
   3. Specify the tax code description in the Description field. This field is available in the following documents:
      • invoice Details Export
      • Credit Taxation Item Details Export (This feature is in Limited Availability.)
      • Debit Taxation Item Details Export (This feature is in Limited Availability.)
   4. Click save.
5. Import tax rates to Zuora:
   1. Click Choose File in the Zuora Tax Engine: Tax Rates panel to locate the CSV file to import, and then click import tax rates. You can download the tax rate import file template in CSV format by clicking the here link. Refer to this sample file and see Load Tax Rates for the definition of the CSV file fields.
   2. ​Click Ok when Zuora confirms that the tax rates have been uploaded.  

If you have successfully uploaded the CSV file, the tax code is now activated.

Add a tax code for Avalara