Support for taxability matrix in AvaTax for Accounts Payable We’ve enhanced AvaTax for Accounts Payable with a configurable taxability matrix that lets you control how taxes apply to purchases and expenses based on multiple business variables. With this release, you can now determine taxability not just by item type, but also by how items are used. Configure tax outcomes using combinations, such as:
- Item code + cost center
- GL account + cost center
- Vendor + GL account You can map these combinations to Avalara tax codes, entity use codes, or mark them as taxable or exempt. You can also include User-Defined Fields (UDFs) for more flexibility. This update improves consumer use tax support by allowing you to define expected tax outcomes based on item usage, giving you a better control and consistency over purchase-side taxability.