# Item list analysis

Source: https://developer.avalara.com/goods-calculation-en/concepts/item_list_analysis/

File Analysis allows the user to prepare the list of items for their operations and upload it to the solution to identify how these items will be taxed in their operations, thus being able to previously review their taxation.

The AvaTax Brazil calculation process is based on the Item data set that is sent during a calculation call (request). This set of data allows us to identify the item being transacted with the appropriate legal grounds that serve as the basis for the calculation parameters (calculation basis, taxation, rate, etc.). During the initial system configuration for a new customer, it is important to check that the data set of your Items is in line with the calculation model of AvaTax Brazil.

Item Analysis allows you to verify that the attributes maintained by the customer in your system contain information necessary to identify the correct taxation of an operation without the need to map item by item to a set of legal foundations and attributes in AvaTax Brazil, which would require additional time and work.

## Item analysis: How it works

Item analysis is the process that allows the user to verify how each item in their operations is taxed. Through the Item Analysis process, AvaTax Brazil presents the taxation of each item according to the static attributes discussed previously; thus enabling the user not only to verify the taxation according to the current legislation (legal citations), but also to configure the key attributes to solve the situations where another tax scenario exists.

Let's examine an example where more than one calculation possibility exists after applying all static attributes:

The HS-Code (NCM) 3307.49.00 for operations within the state of São Paulo may be subject to an ICMS rate of 18% or 20%. In this case, the static attributes alone are not sufficient to define the rate unambiguously and therefore a rule must be created that allows the system to identify the correct rate to be applied.

## Create and apply rules

**Tax parameterization - ICMS analysis**

![](https://avalara-devdocs-prod.mcoutput.com/goods-calculation-en/Resources/Images/DevDot/br-parametrizacao_goods_900x467.png)

**Tax parameterization - create a rule**

![](https://avalara-devdocs-prod.mcoutput.com/goods-calculation-en/Resources/Images/DevDot/br-parametrizacao_02_goods_900x446.png)