Item Tax Codes

Learn to use the AvaTax API to set up tax codes for any item that your company sells.

Tax codes reference the set of rules and regulations that define how a particular item is to be taxed. We provide a tax code and the corresponding item code when recording a transaction in Avalara. Avalara calculates the tax for the recorded transaction based on these two codes.

The {{BASE_URL}}/companies/{{companyId}}/taxcodes/ endpoint in Avalara helps us create these tax codes. We can also use pre-defined tax codes available in Avalara to calculate the tax for an item correctly according to the jurisdictions the item falls in. Here’s a list of some of these tax codes:

Tax Codes

Item Category

Item Subcategory

Item Type

Tax Code

Clothing

Clothing business-to-consumer

Athletic shoes

PC040402

Clothing

Clothing business-to-consumer

Formal wear

PC040118

Information technology


Hardware

Laptops

PC080110

Information technology


Software

Retail computer software

DC020000

Information technology


Data and web

Web design, maintenance, or management services / individual use

SW050000

Freight


Delivery


Delivery by company vehicle

FR010000

Creating tax codes

We use the {{BASE_URL}}/companies/{{companyId}}/taxcodes endpoint and the POST method to create a tax code using the AvaTax API. By creating our tax codes, we ...