# AvaTax Brazil calculation rules

Source: https://developer.avalara.com/goods-calculation-en/fbu5700211262346/

# AvaTax Brazil calculation rules

Understand how AvaTax Brazil uses calculation rules to resolve item identification ambiguities and apply the correct tax.

The calculation process of AvaTax Brazil adopts a "self-sufficient payload" that in short contains the identifiers necessary to point out specifically which item is being traded. Using this payload the system identifies the item and applies its correct taxation.

In some scenarios, even with all these attributes, ambiguity still exists. This ambiguity prevents us from identifying the item being traded with complete precision. To deal with these cases, we have created configurable rules that allow us to resolve this ambiguity and apply additional "decision points" to accurately point out the desired taxation.

Rules can also be used to deal with specific exceptions regarding the origin, destination, specific taxpayer, or situations arising from injunctions, special regimes, and so on

The rules have 2 complementary features. The first is the set of parameters and operators that allow the construction itself. The second is the association with a legal basis, that is, when creating a rule the user must provide the legal basis for its application (see the screen below).

## New rule

The New rule page lets you define the rule type and configure the rule parameters.

**Rule type**

![Rule type](https://knowledge-be.avalara.com/bundle/cjw6783699913145_cjw6783699913145/page/ibv3054866011490.image?_LANG=enus)

**Rule parameters**

![Rule parameters](https://knowledge-be.avalara.com/bundle/cjw6783699913145_cjw6783699913145/page/kbc9365547424067.image?_LANG=enus)