# Glossary Source: https://developer.avalara.com/products/crossborder/integration-guides/avatax-for-cdit/sfm2167914813497/ Guide: AvaTax Cross-Border (Customs Duty and Import Tax) # Glossary Understand the key terms used in AvaTax and this integration guide. Review this glossary to understand the terms used in this integration guide and in AvaTax. A - API client A set of routines, protocols, and tools for building software applications. An API specifies how software components interact and APIs are used when programming graphical user interface (GUI) components. B - blanket exemption A certificate that gives sellers authority to exempt a buyer's entire transaction from sales tax. It's attached to the original invoice and contains the company name, effective date, reason code, and purchaser's exemption number. - business identification In AvaTax, the VAT identification number assigned to a non-U.S. country. This is the Canadian IIN or European VAT. C - child company A company that can inherit its company profile from a parent company in AvaTax. - Tax authorities Jurisdictions where you’ve registered to collect and pay tax. - commit An Avalara term interchangeable with "record," specifically as it applies to recorded or recording documents. - company code In business application that works with AvaTax, the code the software uses to identify itself to AvaTax. - consumer use tax Consumer use tax is owed when a buyer isn't taxed the full amount on a purchase. Examples include: - An out-of-state vendor didn't collect any or all owed tax. - You originally put a purchase in inventory to resell, but used it instead. - A purchase was made in one jurisdiction and puts into service in another. - A change of disposition (usage reason or location) can also trigger a consumer use tax. D - DAP Delivered at Place. For customs duty and import tax transactions, this indicates that the seller is responsible for all delivery aspects, including packaging, documentation, export approval, loading charges, and ultimate delivery. The buyer is responsible for unloading. The buyer is also responsible for import clearance and any applicable local taxes or customs duties. - DDP Delivered Duty Paid. For customs duty and import tax transactions, this refers to a seller who assumes all responsibility of transporting the goods until they reach an agreed-upon destination. The buyer is responsible for unloading. In these scenarios, the seller is responsible for all applicable taxes and customs duties. - document code In AvaTax, the unique identifier number for an invoice, credit memo, or return. E - entity use code Transaction where a seller passes customer order and shipment details to a third party who ships goods directly to the customer. Also called drop-shipping.. - ERP A large-scale software program designed for modern businesses, both large and small. ERP systems help internal business processes flow and enable communication between departments and internal functions. - exempt customer A buyer who’s exempt from sales and use tax. - exempt reason The reason a person or business is requesting a tax exemption. Can be based on product type, business type, or the purpose of the purchase. - exemption certificate A A record of information that pertains to a transaction, a specification, or a policy. Use the names of specific document types such as invoice, order document, despatch advice, and so on wherever possible. Do not use document to refer to the transaction itself. issued by a controlling taxing A potentially exempt business associated with a particular industry that certifies a business or individual is exempt from a tax liability. - exemption exposure Exempt transactions that don’t have an exemption certificate. - exemption number A unique identifier for each exemption certificate A record of information that pertains to a transaction, a specification, or a policy. Use the names of specific document types such as invoice, order document, despatch advice, and so on wherever possible. Do not use document to refer to the transaction itself.. G - geolocation The process of assigning latitude and longitude to a street address. I - item code A unique identifier for an item (product, service, or charge). J - jurisdiction A geographic area that requires certain tax payments. L - location In AvaTax, a record of the physical presence of a company or its personnel. M - marketplace facilitator (MPF) A marketplace facilitator, or MPF, is anyone who provides a forum to list or advertise taxable tangible personal property for sale by marketplace sellers. The MPF collects receipts from the customer and pay payments to the marketplace seller. The MPF also receives compensation for these services. - The merchant of record The merchant of record bills for the items on a transaction. This merchant's name appears on your billing statements. N - NexusGuidance: Domains Enablement DevDocs Help Authoring guidance UX "nexus" term set Avalara core AvaTax Definition The connection a business has with a tax authority that creates a tax obligation. The tax obligation is established in one of two ways: economic nexus or physical nexus. Economic nexus means that a sales or transaction threshold for a jurisdiction has been met. Physical nexus means that a business has a connection within a jurisdiction such as the presence of workers, real property, or goods. Note Usage: Avoid using "nexus" in UX, help, and onboarding content. If you must use "nexus," try using some form of the phrase "to have nexus" or "to have a nexus obligation," and then add a description. Example title or label: Where you collect and pay tax Example: If you keep inventory in another state, you may have an obligation to report tax there even if you do not have customers in that state. Example: We recommend researching the nexus obligations for each jurisdiction where you do business. These obligations are triggered by conditions such as sales figures or physical presence. Example from Marketing: A thorough analysis of your sales activity will help identify where you have nexus--that is, sales tax responsibilities. See also: economic nexus, physical nexus Translation note: https://vitrinelinguistique.oqlf.gouv.qc.ca/resultats-de-recherche?tx\_solr%5Bq%5D=nexus A connection between a business and a jurisdiction that creates a legal requirement for the business to register and pay taxes within the jurisdiction. In AvaTax, a setting you configure to identify jurisdictions where you're registered to collect and pay tax. O - online marketplace A site that sells products or services from multiple merchants. P - product taxability Whether the products and services you sell are fully taxable, partially taxable, or nontaxable. This varies based on the product or system need, amount, and quantity; the transaction date; and the jurisdiction. Sometimes referred to as taxability. Q - quote-to-cash Describes the end-to-end transaction experience or A record of information that pertains to a transaction, a specification, or a policy. lifecycle. This lifecycle begins as a quote and ends with a committed transactions and a payment. S - sales tax A domestic transaction tax in the U.S. on retail sales of goods and services. Collected and pay by an in-state seller with a location in the jurisdiction. - Seller use tax A domestic transaction tax in the U.S. on retail sales of goods and services. Collected and pay by an out-of-state seller with Nexus, but no physical location, in the jurisdiction. - SKU SKU. An identification code applied to products or services you offer, created for ease of identification and record keeping. T - taxability The products and services you sell are fully taxable, partially taxable, or nontaxable. This depends on the type of product or service, the amount, and the quantity. It also varies with the transaction date and the jurisdiction. - tax code An alphanumeric code in AvaTax associated with certain items to identify which tax rules apply to those items. - tax identification number A unique, nine-digit identifier assigned to U.S. companies for tax reporting purposes. - Company profile The collection of jurisdictions, tax codes, tax rules, and items that define the taxing policy of a company. - tax rule A custom rule that you can set up to change AvaTax's standard calculation. - technology partner A business that's signed a formal contract to build a repeatable integration to Avalara's product suite. - transaction The record of an invoice, credit memo, or return. U - UUID [Universally unique identifier](https://en.wikipedia.org/wiki/Universally_unique_identifier) V - varying taxability Different jurisdictions tax products and services at different rates.