Lago’s native integration with Avalara allows you to automatically update your invoices with tax amounts sourced directly from Avalara. This integration ensures compliance with international tax regulations by calculating taxes for US & non-US obligations, like VAT.
draft
status, Lago creates a SalesOrder
in AvaTax to estimate the applicable taxes.
This preliminary calculation allows teams to preview tax amounts before finalizing the invoice.
Once the invoice is finalized
in Lago, a corresponding SalesInvoice
is created in AvaTax.
This marks the transaction as final and eligible for reporting to the appropriate tax authorities, ensuring compliance and traceability.
To calculate tax, Lago includes both the ShipFrom
and ShipTo
addresses for each invoice.
AvaTax uses these details to apply tax rules based on the nexus jurisdictions you’ve configured in your Avalara account.
The calculated tax data is returned from AvaTax and automatically applied to the Lago invoice.
Lago also keeps your records in sync by automatically updating AvaTax whenever an invoice is voided or disputed, or when a credit note is issued.
This ensures that your tax reporting in Avalara remains accurate and up to date at all times.
nexus
jurisdictions. These are the states or regions where you are obligated to collect and remit sales tax.failed
if any item requiring tax calculation from Avalara is not properly mapped and no fallback item is provided.Mapping Lago item to Avalara
Automatically creating a new Avalara customer
customer.tax_provider_error
webhook is triggered to notify you of any issuesImporting an existing Avalara customer
customer.tax_provider_error
webhook is triggered if the sync encounters issuesMapping Lago item to Avalara
tax_identification_number
configured in Lago, this ID will be sent to Avalara for tax calculation and reporting. This ID is essential for determining whether the transaction is subject to a reverse charge in eligible VAT countries.
draft
and encounters a tax synchronization error, you have the option to refresh the invoice to recalculate the tax. The invoice remains editable during this process, and the error will not prevent the invoice from being finalized
. However, if the error persists after attempting to finalize the invoice, the invoice will be marked as failed
.
Mapping Lago item to Avalara