Improved VAT calculation on freight AvaTax now supports improved VAT calculation on freight when provided along with the associated goods lines. When multiple VAT rates apply to the goods in a transaction, AvaTax splits the VAT on freight into separate tax details by rate.
Each VAT calculation on freight uses the same VAT code and VAT section as its corresponding goods line. This supports consistent VAT calculation and makes it easier to trace how freight charges relate to goods.
A new field at the LineDetail level returns the VAT code in a structured formatC_D_T_V_G_S. This format includes:
- Country
- Document type
- Transaction type
- VAT rate
- Goods/service type
- Deduction rate
For more information, see Line detail level VAT code format.
This feature also works with marketplace rules like isMerchantSellerDependency and taxDependencyLevel. It applies only to VAT countries and excludes the U.S., Canada, and India. This feature is controlled by an account-level feature flag. Contact your Customer Account Manager to use this feature. VAT enhancement setting now available for account admins Account Admin users can now view and update the VAT enhancement setting in AvaTax. Previously, this setting was available only to users with the Technical Support Admin (TSA) or Technical Support User (TSU) roles. Access permissions for TSA and TSU remain unchanged.
To update the VAT enhancement setting:
Go to Settings > All Settings > Advanced Account Settings > Manage
Users with other roles, including Account User, Company User, and Company Admin, still can’t access the importer of record priority setting or the VAT enhancement configuration.
For more information, see Update Enhanced VAT calculation settings in AvaTax.