How to set up automated taxes using Avalara

Last updated: April 17, 2026

Automatically calculate taxes for ticket purchases using Avalara integration. This helps ensure accurate tax calculation and reduces manual effort.

What this feature does

  1. Calculates taxes dynamically during checkout based on on purchaser location and applicable rules

  2. Applies the correct tax rules for each ticket and add-on

  3. Ensures invoices and transactions match calculated tax amounts.

  4. Reduces manual errors and compliance risks

Prerequisites

To use this feature, make sure you have the following:

  1. An active Avalara account

  2. Your Avalara credentials:

    1. Account number

    2. License key

    3. Company code

Tax codes created in Avalara for your items.

Step 1: Configure Avalara at the organization level

  1. Go to General → Merchant account → Taxes

  2. For tax mode, select Taxes are excluded from the prices

  3. Choose tax calculation method as Automatic tax calculation via Avalara.

  4. Now click Configure Avalara to connect your Avalara account to this merchant account.

  5. Enter your credentials

    1. Account number

    2. License key

    3. Company code

  6. Click Connect Avalara and once validation is successful, the connection is done.

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Step 2: Assign tax codes to tickets and add-ons

  1. In any event, go to Registration → Tickets → Settings → Payment gateway.

  2. Select a payment gateway with Avalara enabled.

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  3. Click Configure tax codes. If you don’t have any tickets, create them first and then assign tax codes to each item.

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  4. Alternatively, you can add tax code at an individual ticket or add-on while creating or editing them.

  5. That’s it. Now when attendees purchase tickets, tax will be calculated at the payment stage when they enter the address.

Note: Tax code is an optional field. Avalara uses a default tax classification, which may not reflect the correct tax treatment. We strongly recommend adding tax codes for accurate calculations.

Purchaser experience:

  1. Purchasers will add tickets and add-ons to their cart,

  2. If they apply coupons or discounts, the discounted amount will be reflected in the subtotal before tax is calculated.

  3. Since tax is calculated after address is entered, they will be shown a placeholder for the tax field that says “Enter address to calculate”.

  4. Once they review their order summary and click on Go to payment, purchasers will be prompted to enter their their billing details.

    1. The state or province is required to be selected if the country is the United States or Canada.

  5. Once the billing address is entered, taxes are calculated automatically based on location and selected items.

  6. The order summary updates to show the final tax amount and total payable.

  7. Purchasers can thencan click Make Payment to complete the payment.

  8. The same will be reflected in the invoices in the emails received.

Important notes

  1. State or province is required for US and Canada addresses

  2. Taxes are calculated only after the billing address is entered

  3. Tax rates may vary based on location and item type

  4. Tax is displayed as an amount and not as a percentage

Troubleshooting

Connection failed

  1. Verify your Avalara credentials

  2. Ensure the correct mode (Development or Production) is selected

  3. Try connecting again

Tax not calculated at checkout

  1. Check if billing address is entered

  2. Ensure tickets and add-ons have tax codes assigned

  3. Confirm Avalara is enabled for the selected payment gateway

Best practices

  1. Assign correct tax codes for all items before publishing your event

  2. Test transactions in development mode before going live

  3. Use production mode only after validating configuration

  4. Review invoices to ensure tax accuracy

Frequently asked questions

Why is tax shown as an amount and not a percentage?

Taxes may include multiple components such as state, county, and city-level taxes. Showing the final amount ensures accuracy.

Can different tickets have different tax values?

Yes. Taxes are calculated per item based on tax rules and item type.

What happens if tax codes are not assigned?

If tax code is not added, Avalara uses a default tax classification, which may not reflect the correct tax treatment. We strongly recommend adding tax codes for accurate calculations.