Enhanced the currency conversion logic for tax calculation.
Before this release, AvaTax applied an exchange rate to tax details even when the taxed country’s currency was the same as the invoice currency. This caused incorrect tax reports, especially when no currency conversion was needed.
From this release, the currency conversion happens only when the taxed country’s currency is different from the invoice currency.
- If the ExchangeRateCurrencyCode isn’t given, AvaTax now figures it out based on the taxed country’s currency, unless it’s unclear (for example, when there are multiple taxed countries with different currencies). Note If there are multiple taxed countries with different currencies and a single exchange rate, Avalara applies the invoice currency for ExchangeRateCurrencyCode.
For example,
- If the invoice currency is USD and a line item is taxed in the U.S., no conversion is done.
- If the same invoice has a line taxed in Canada, the tax amount is correctly converted using the given exchange rate.
- If multiple lines are taxed in countries using a different currency (for example, EUR), the conversion is applied as needed.