It is great that we can add a 1 time tax and it is great that we can add a 1 time fee - however it would be great to be able to mark this fee as non-taxable if needed. Shipping costs, to my knowledge, is not taxable in any state other than NJ.
@MBrann That’s a common issue I’ve seen and the issue with rate tables and trying to manually dictate taxability of a client or product is the constant manual updates required. Tax rules change often, and most businesses don’t have someone monitoring them closely, which makes the “set it and forget it” approach risky.
The integration we built in the HubSpot Marketplace, Sales Tax Powered by AvaTax, connects HubSpot to Avalara’s AvaTax engine so Avalara handles tax calculation for you. Here’s how it works:
- Map products: HubSpot product codes are mapped to Avalara tax codes so AvaTax knows what you’re selling.
- Map customers: Exempt customers in HubSpot are mapped to Avalara so AvaTax knows who qualifies. Since not all exemptions always apply the same way everywhere, Avalara tracks the nuances for you.
- Automated calculation: When a Quote is generated in HubSpot, AvaTax applies the right rules in real time based on current tax regulations, not an outdated rate table.
This means AvaTax automatically assesses both the product and the buyer, keeps you more accurate, and reduces risk. It’s also more scalable, if someone on your team leaves, you don’t lose the process. So for things like Shipping, Avalara can properly tax it based on where it’s being shipped and the rules of that jurisdiction, in real time.
In short, this integration lets Avalara’s tax engine do the heavy lifting so your team isn’t stuck maintaining compliance manually.