How do I setup the Zuora Avalara integration?

Overview

Avalara is software for automated tax compliance. Whether you are selling online, starting a new business, or need help filing internationally Avalara can help with your tax needs. Customer who have more advanced or automated tax needs, generally choose to integrate Zuora and Avalara.

Below are the high-level steps to configure Zuora to work with Avalara.

Solution

Submit a ticket to Zuora Support in order to gain access to this feature (currently in Limited Availability).
 
1. Set up Connections to Avalara: Add Avalara as a tax engine in your Zuora tenant and set up the connection.
 
2. Configure Tax Codes in Zuora Billing: Create tax codes in Zuora and associate them with your tax codes in Avalara.
 
3. Associate Avalara Tax Codes with Product Rate Plan Charges: set the Taxable flag on the charge in order to display the Tax Codes. Choose the applicable Tax Code to use for that product
Note** this only needs to be done in the Product Catalog; a mass-amendment of subscriptions is not required.

4. Configure your Tenant Profile & Permissions: set origin address in Zuora and verify this address for compatibility in Avalara. Add Company Codes and additional origin addresses. Disable the Cancel Posted Invoice permission.

Note** all addresses require a Country; for US and Canada a State is required

5. Create Tax Exemptions: specify whether a customer account is tax exempt or not tax exempt
 
After completing testing in Sandbox, enable and test in Production.