# Why do my transactions return a $0.00 tax calculation?

Source: https://developer.avalara.com/avatax-for-vat/aik9657637237598/

# Why do my transactions return a $0.00 tax calculation?

Learn why transactions may return a $0.00 tax calculation and how to address the issue.

There are several reasons why a transaction may return a $0.00 tax calculation.

-   **The company isn't set up to collect tax in the jurisdiction**: This is the most common reason why AvaTax returns a $0.00 tax calculation. AvaTax will only return tax calculations for jurisdictions where you tell it you're registered to collect tax. Register to collect and pay taxes wherever your company conducts business. If you're not sure whether your company should be registered to collect tax in a specific country or a U.S. state or territory, speak to your tax professional.

    Refer to the [Tell us where you collect and pay tax](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/Tell_us_where_you_collect_and_pay_tax.html) Knowledge Center article and the [What’s a sales tax risk assessment, and why should you get one?](https://www.avalara.com/blog/en/north-america/2020/10/why-you-should-get-a-sales-tax-risk-assessment.html) blog post for more information.

-   **States without sales tax**: Some states or tax authorities in the U.S. don't collect sales, use, or transactional taxes. In this case, transactions will correctly show zero tax unless they trigger special excise taxes or other functionality. More information is available in the [States with no sales tax](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/States_with_no_sales_tax.html) Knowledge Center article.

-   **Nontaxable product**: Transactions can also have zero tax if they involve products that aren’t taxable. Some jurisdictions choose not to tax certain products or to tax them only in certain conditions. The jurisdiction may choose to call the product “exempt from tax,” or “nontaxable,” or simply a product with a zero tax rate. AvaTax will determine the taxability of the product based on the tax code that you provide.

-   **Tax override of zero**: If you're using a tax override to import tax calculated by a different tax engine, AvaTax may assign zero tax to your transaction to match the functionality of your older software.

If none of the above reasons answers your question, and you believe you should be collecting tax, you can log a ticket with Avalara support to dispute the calculation.