VAT Calculation Badge Requirements

Administration/Utilities

Name	Type	Description	Comments
AvaTax Configuration Window	Required	The AvaTax Configuration Dialog Window must allow the user to specify the configuration/connection information Account Number License Key Environment (Production/Sandbox) Company Code Lookup
AvaTax Test Connect Button	Required	Test the connection to the AvaTax service and verify the AvaTax credentials. This is an important element to allow for successful troubleshooting of the AvaTax Service.
Control - Disable Document Recording	Required	In order for this connector to be used in conjunction with other integrations to AvaTax, the user must be able to control which connector is used for recording documents to AvaTax. From a technical standpoint, simply use `docType: 'SalesOrder'` on all calls and suppress any non-tax calculation calls (i.e. VoidTransaction, CommitTransaction).
Request time out definition	Suggested	Define a timeout value for AvaTax requests
Enable client-side logging	Required	Users must have the option to retrieve detailed AvaTax transaction logging within the application, including the capture of round-trip processing time, and they need the complete request/response for each call made to Avalara services. This logging does not need to run all the time, as doing so will cause the database to grow unnecessarily large. This can be set up to only log the last week, 30 days, custom, or have a control for the next N hours, etc. This requirement is to assist customers and support in troubleshooting exercises, so it must be retrievable by an end user (or an administrator). It should be specifically Avalara service calls.
Display prices with Tax Included	Required	Enable the tax inclusive flag in the tax calculation request
Option to disable AvaTax	Required	The user must have an option to turn on or off the AvaTax Calculation service independent of any other Avalara product or service
User Implementation Guide	Required	Users must have a way to access a User Implementation Guide. This guide should contain screenshots and information allowing the end user to configure for AvaTax, including where the company code is entered, where the credentials are entered, and where tax codes can be mapped within the application.

Item/Charge Integration

Name	Type	Description	Comments
Item Code	Required	Identify the itemCode value (number, ID) to pass to the AvaTax service.
Item Description	Required	Identify item/service/charge description to pass to the AvaTax service with a human-readable description or item name
AvaTax Tax Code Mapping - Item/SKU	Required	Users must be able to associate an item or item group to an AvaTax Tax Code to describe the taxability (for example, "Clothing-Shirts" – "B-to-C").
Non-Standard Items	Required	Users must have a way of associating Freight/Shipping and/or Handling charges to an AvaTax Tax Code to describe the taxability.
Tax Code Mapping Group	Suggested	Users should be able to associate a group of items to an AvaTax Tax Code in order to describe the taxability of the group.
Tax Code Lookup	Suggested	Users should be provided with a method for looking up tax codes.

Sales/Billing Documentation Integration

Name	Type	Description	Comments
Document Code	Required	Values that can come across to AvaTax as the docCode
Customer Code	Required	Values that can come across to AvaTax as the customerCode. This is used to identify any certificates linked to the customer
Document Date	Required	Value comes across to AvaTax as the docDate
Document Type	Required	Your integration must send docType values corresponding to the stages of the transaction life cycle
Ship From Address	Required	Value sent to AvaTax at the header and line levels for the address where items are shipped from
Ship To Address	Required	Value sent to AvaTax at the header and line levels for the address where items are shipped to
Goods or Place Service Rendered Address	Suggested	Your integration should be able to store at the header or line levels the full address where the goods are located when there is no transportation. This is required if your platform accepts this address
Import Address	Conditional	If your application supports Import addresses, then your integration must be able to store at the header or line levels the full address where goods are imported into
Line Number	Required	The value for each line within a transaction, specified using a unique line number
Quantity	Required	The value for the quantity of an item for each line of a transaction
Amount (extended)	Required	The value sent to AvaTax as the total amount for each line item in a transaction, keeping in mind the status of the isTaxIncluded flag
Include Tax in Line Amounts	Required	Users must be able to specify on each line in a transaction whether the total line amount includes tax
Tax Code	Required	Value sent to AvaTax as the taxCode for each line of a transaction
Shipping/Freight Handling in Transactions	Required	The handling of shipping and freight in AvaTax must match your application's implementation. For VAT transactions, freight can be included in the total amount or added as a separate line
Discount Transactions	Required	Users must ensure that discounts on transactions are processed appropriately
Verify Avalara calculated Tax Amount is used in Transaction	Required	Confirm that the integration is taking the Tax Amount value from the tax calculation response and using that to decorate the tax fields in the platform. Do NOT take our rate and use it to calculate the tax within the platform itself
Sales Order/Sales Invoice	Required	Your integration must mirror your system's workflow as it relates to orders and invoices and use the appropriate document types
Commit Transactions	Required	Your integration must mirror your system’s workflow for a transaction lifecycle when committing documents
EU Invoice Messaging	Required	Display and store any messaging returned by the AvaTax engine on the customer invoice
VAT Code in Responses	Required	Display and store the VAT code returned by the AvaTax engine in the ERP transaction record
Currency Code	Required	The three-character currency code at the document level sent to AvaTax for transactions
Exchange Rate	Suggested	Your integration should allow users to specify an exchange rate for transactions
Exchange Rate Currency Code	Conditional	If your application allows users to input an exchange rate, then you must allow users to also include the currency code for the exchange rate
Exchange Rate Effective Date	Conditional	If your application allows users to input an exchange rate, then you must also allow users to specify the effective date of the exchange rate in a transaction
Business Identification Number	Required	Users must have a way to specify the customer's business identification number (also known as VAT Registration ID). This data element should be found directly on the transaction header
Country Code	Required	The value sent to AvaTax as the two-character countryCode in transaction addresses
Transport	Required	Users must be able to specify who in the VAT transaction is responsible for handling the transportation of the physical goods
Is User the Importer of Record	Suggested	Your integration should allow users to specify whether the user is the importer of record for a transaction
Second Hand Goods	Suggested	Users should be able to specify whether the goods being sold in a VAT transaction are second hand (used)
Counterparty Registered Through Fiscal Representative	Suggested	Your integration should allow users to specify whether the counterparty in a sales transaction is registered through a fiscal representative in a given country calculating VAT
Avalara Client Registered Through Fiscal Representative	Suggested	Your integration should allow users to specify whether the Avalara client is registered through a fiscal representative in the given Nexus country for VAT

Server Audit Clarity and Installation Requirements

Name	Type	Description	Comments
Pass Connector Identifier Information via the X-Avalara-Client HTTP Header	Required	Integrations must include information about the connector, such as name, version, and company name, as a signature to each transaction
Reasonable Messages on Server-Side Analysis	Required	There should be no errors except those that would result from normal (but invalid) user input (e.g. invalid address data). Such errors must be logged/displayed appropriately to the system
Reasonable Ratio of Tax Determination and Address Validation calls to Committed Documents	Required	In a normal workflow, we expect to see (on average, including abandoned carts) up to 10 tax calculations per finalized document. In a straight-forward order entry process, the number of calls should be about three to five
Demonstrate and Document Installation of Software	Required	Users should have an easy and trouble-free installation experience

Advanced Feature - Input VAT

Advanced Features contain functionality that we suggest building into your integration on top of what is included in the Certification Badge. The requirements and the respective ‘type’ values below apply only to the Advanced Feature, and “required” components are not mandatory to achieve the Certification Badge.

Name	Type	Description	Comments
Purchase Order/Purchase Invoice	Required	Users must be able to create quotes or estimates using purchase orders and purchase invoice document types
Point of Order Origin Address	Required	The address sent to AvaTax as the PoO at the header or line level for where the order was accepted by your supplier, such as a call center, business office where purchase orders are accepted, and server locations where orders are processed and accepted
Point of Order Acceptance Address	Required	The address sent to AvaTax as the PoA at the header or line level for where the order was accepted by your supplier, such as a call center, business office where purchase orders are accepted, and server locations where orders are processed and accepted
Goods Place or Services Rendered Address	Required	The address sent to AvaTax at the header or line level for where the goods are located when there is no transport
Import Address	Required	The address sent to AvaTax at the header or line level for where goods are imported into
Option to Defer Import VAT	Required	Users should be able to specify whether a customer can defer import VAT until the return is filed
Comparison of Vendor Tax and Self-Assessed Tax	Suggested	ERP systems must allow users to compare what AvaTax calculates as the tax versus what was actually received on the invoice

Advanced Feature - Triangulation

Name	Type	Description	Comments
Triangulation Transactions	Required	Users should be able to specify whether the transaction is related to a prior or subsequent supply of goods
Middleman VAT ID	Required	Users should be able to specify the VAT ID of the middleman in triangulation scenarios
Goods Place or Services Rendered Address	Required	Users must be able to specify at the header or line levels, the address where the goods are located when there is no transport in triangulation scenarios.