Creating and activating a default company in AvaTax for VAT is a three-step process:
For the purposes of this companion guide, we will walk through the setup process for creating a company in the Sandbox environment. This setup configures a company whose primary address is in the United States. If your company is based outside of the US, the steps will vary slightly. Simply follow the walk-through in the UI, which will guide you through the configuration.
Advice: You have the option to create additional child companies within your default company. More information about adding child companies is available in the Add a child company Help Center topic. If you add child companies, and you do not specify a companyCode
in a transaction, then the default company will be used to process that transaction.
Effective July 1, 2021, the EU is eliminating the existing country-to-country distance sale threshold and replacing that with a single, 10,000 Euro threshold. Transactions that are dated prior to July 1, 2021 will support any existing country-to-country settings. Transactions dated after July 1, 2021 will use the new checkbox setting.
As a result, the existing AvaTax EU Distance Sale UI will be updated to a single check box to reflect this legislative change. The AvaTax engine by default enables this option, thus assuming that a company has exceeded this threshold for all transactions.
Verify this setting in AvaTax by going to Settings > EU Distance Selling Threshold. This setting is enabled by default. Only change this if your company will not exceed the 10,000 Euro distance selling threshold.