1. What the Sales Tax Look Up does:
a. Requests a Sales Tax Rate from Avalara based on:
i. The State(s) that your organization indicated where you are registered to collect sales tax
ii. The latitude and longitude of your organization's physical address
iii. The latitude and longitude of the contacts physical address on the sales invoice
2. What the Sales Tax Look Up does NOT do:
a. Take into account any other “ship from” address other than the organization’s physical address within your Xero organization settings.
i. For example, if your organization’s physical address in Xero’s Service is in Address X, but you have a warehouse in Address Y that you ship from: the Sales Tax Rates will still be provided based on Address X, which may be incorrect.
b. Consider any other “ship to” address other than the physical address of the contact on the sales invoice
i. For example, if your contacts physical address is Address X, but you are shipping the goods to a warehouse in Address Y, the Sales Tax Rate will still be provided based on Address X, which may be incorrect.
c. Look up tax rates based on the product or service type
i. The Sales Tax Rates provided by the Sales Tax Look Up are the standard state sales tax rates. Some products or services may be taxed at a higher or lower rate, exempt from taxation, or subject to additional, special taxes. For example, in some states, medical devices have an additional 2.3% sales tax, there are “sin taxes” on certain products (e.g., alcohol, tobacco, firearms) or lower sales tax or exemptions on necessary items (e.g., groceries or second hand clothes). The Sales Tax Look Up does not consider these product or service based sales tax rules/exemptions/laws.
d. Consider different states’ tax treatment of shipping and handling costs.
i. Different states may apply different sales tax rates to “shipping” and “handling”.
e. Consider different states’ tax treatment of discounts on product or service Sales
i. For example, it may be that in some states if you discount your product or service, you are required to collect sales tax on the product or service without regard to the discount.
f. Consider different states’ tax treatment of a “bracket”, “banded”, or “capped” sales taxes.
i. Where certain products or product ranges have different sales tax rates depending on the whole dollar amount sold.
1. An example of a bracket/banded sales tax is Florida’s discretionary sales surtax.
2. An example of a capped sales tax is Tennessee’s local option sales and use tax.
g. Register you with state tax authorities.
i. If you collect sales tax in a state - you must register with a tax authority
h. Assist you with identifying or obtaining or managing any available tax exemptions (or exemption certificates).
i. The Sales Tax Look Up provides Sales Tax Rates as described above. In some instances, an exemption for your business or certain products or services you sell may be available. The Sales Tax Look Up does not consider any product or service based sales tax exemptions/exemption certificates that you may have.
i. Provide tailored advice to you or otherwise take into account any special considerations that may be applicable to you, your business, or your products.
j. Provide a substitute for your accountants, financial or legal advisors or other professional advice.
i. Please consult with your own advisors
k. Provide any guarantee that the Sales Tax Look Up will provide correct rates or accurately determine tax liability.
3. Avalara terms
a. The Sales Tax Look Up is provided “as is,” “with all faults,” and Avalara provides no representations, warranties, covenants, or promises that the Sales Tax Look Up will provide the correct rate or accurately determine tax liability. Use and implementation of the Sales Tax Look Up is at your own risk; and Avalara, Inc. shall not be liable to you, or any third party, in any way, for any losses, damages, costs, or other expenses arising from your use of Avalara AvaTax tax calculation. To the maximum extent permitted by applicable law, in no event shall Avalara be liable to you or any party for any direct, indirect, punitive, special, exemplary, incidental, consequential or other damages of any type or kind (including, but not limited to, damages for loss of data, revenue, profits, goodwill, use or other losses) arising out of, or related to, the Tax Look Up service, even if Avalara has been previously advised of the possibility of such damages and, regardless of whether any action or claim is based in contract, misrepresentation, warranty, indemnity, negligence, strict liability, or other tort or otherwise.
4. Xero Disclaimer.