Getting Started

Building Blocks

Subscription Features

Custom Fields




Order Management

Billing Features


Payment Methods

Direct Debit Payments

Configuring Gateways

Revenue Recovery


Self-Serve Portal


Reports and Analytics

Data Privacy & Security

Fraud Management


Other Features


Third Party Integrations


Avalara  is a cloud-based SaaS solution for taxation and compliance requirements.

With Chargebee's Avalara integration, you can handle taxation with ease, eliminating the need to manually configure tax for each of your taxable region or nexus. Avalara automates accurate rate determination, address validation, tax filing, and reporting, while complying to jurisdiction rules. Apart from these, Avalara also handles tax rate updates, so you won't have to manually update the tax rates each time they change. All you need to do is integrate your Avalara account with your Chargebee site and take care of the few prerequisites explained below.

You can sign up for an Avalara account here .

Prerequisites for integrating with Avalara 

1. Organization Address 

Avalara requires your business' address to calculate tax for an invoice. The Organization Address you provide in your Chargebee site will be used by Avalara for this purpose, and will also be stored as the Origin Address in Avalara. In order to use the Avalara integration, the Organization Address in Chargebee should have at least the Country, State, and Postal Code filled.

The Organization Address can be configured for your site under Settings > Configure Chargebee > Business Profile.

2. Address for Tax Determination 

Chargebee will use your customer's shipping address to calculate tax. If the shipping address is unavailable, then the billing address would be used for the same.


If you're using Hosted Pages, ensure that:

  • The Shipping/Billing Address field has been enabled. This can be done under Settings > Configure Chargebee > Checkout & Portal > Fields.
  • The Zip Code, Country, and State fields are made mandatory in the hosted pages.

3. Nexus Jurisdictions 

When your business has 'nexus' in a tax jurisdiction, it has a physical presence and connection in that jurisdiction and is thereby obligated to collect and remit taxes to the State. Configure nexus jurisdictions in your Avalara AvaTax account to let Avalara know where to tax. Country, regional, and local jurisdictions can be added for this purpose. While configuring nexus jurisdictions, you will be prompted to add the 'begin' and 'end' dates. Avalara requires these dates to determine when to process transactions.

More on nexus jurisdictions here .

Configuring your Avalara Account in Chargebee 

Once the prerequisites have been implemented, Avalara can be configured for your Chargebee site.

  1. Enable Avalara for your site under Settings > Third-Party Integrations > Avalara.

  2. Enter the Account number, License key, and Company code received from your Avalara AvaTax account.

  3. If you're planning to use Avalara for tax filing, all invoices and credit notes can be posted to Avalara as soon as they are generated by enabling the Post Invoices and Credit notes to Avalara option.

  4. You can choose from the following options to set the status of the invoices and credit notes,

Commit all invoices and credit notes: All your invoices and credit notes will be sent to Avalara as Committed.

Commit only paid invoices and adjusted/refunded credit notes: Only paid invoices and adjusted/refunded credit notes will be sent to Avalara as 'Committed'. Remaining invoices will be sent as Uncommitted.

Don't commit: All your invoices and credit notes will be sent to Avalara as Uncommitted.

Learn more  about how this works in Avalara.

  • Ensure that the Invoice/Credit Note numbers of the documents in Chargebee that are yet to be committed, are different from the numbers used for documents that have already been committed in Avalara.
  • Once the preferences are set, you cannot change the status of the invoice/credit note sent to Avalara.

Avalara Address Validation 

You can use Avalara's Shipping Address Validation (for example Street Address) for a more accurate tax calculation. This is especially useful if your business involves delivering of physical goods. A valid street address would mean lesser goods returning to you. When this option is enabled, the Shipping Address will be validated for every "Add/Update Shipping Address" operation.

When this option is enabled, the customer's shipping address is checked, if the address is invalid, an error is generated. The customer will then have to edit the address before completing the signup process.


Only US and Canadian addresses will be validated.

Allow Customer to sign-up with/update Partially Valid Address 

If the address is incomplete but Avalara is still able to return the tax rate, then this address is considered as a partially valid address.

The "Allow Customer to sign-up with/update Partially Valid Address" option has been provided to ensure that your signups are not affected due to invalid street addresses. If this option is enabled, Chargebee will allow partially valid addresses during checkout. These will be marked as ‘partially valid' in your Chargebee site. You can then filter the addresses from the web interface, and contact the customers to receive the correct address details.


Addresses with invalid Country, State and Zip codes will not be permitted during sign up.

What happens to existing customers? 

For customers who have signed up before enabling Avalara, Chargebee will cancel their subscriptions during renewal if tax cannot be determined. To identify subscriptions that are at a risk of getting cancelled, Chargebee provides a validation tool. The subscriptions which are at the verge of cancelation can be determined using this tool and you can view the Invalid address details.

When tax cannot be determined during renewal, instead of getting cancelled, if you want the subscription to renew without tax, please contact .

The tool will validate a Subscription's taxable address. This means that if the Shipping Address is present, then it will be used for the validation. If the Shipping Address is not present, then the Billing Address will be used instead.
In order to validate the address, Chargebee will make a tax estimate call to check if the address is taxable. If the taxable address happens to be the Shipping Address and if Avalara's Shipping Address Validation is enabled, we will make an additional check to validate the complete address.

  1. The address validation check for existing customers has to be done before going live with Avalara.
  2. Once an address is validated and its validation status has been set, the address will be ignored during subsequent checks.
  3. If you're collecting the Billing Address from your customer, the billing address will be marked as partially valid/invalid.
  4. The addresses for sign ups that occur after validation and before enabling tax might get through without validation/might surpass the validation check.

You can use Avalara to configure tax rates in the US and Canada. Find out how to configure your tax settings for the US and Canada here.

Validation Status 

The possible address validation statuses are:

  • Not Validated: No validation check has been done. As default, all addresses will be marked as not validated.

  • Valid: Avalara address validation is successful.

  • Partially Valid: Address validation was not successful but essential fields for tax calculation are present. The error message Avalara address validation has failed will be displayed.

    Valid Address Partially Valid Address
    340 S, Lemon Ave #1537,
    Walnut, 91789
    California, United States
    340 S Avenue #1537,
    Walnut, 91789
    California, United States
  • Invalid: Address validation was not successful and tax could not be calculated. The error message Tax cannot be computed for this address will be displayed.

    Valid Address Invalid Address
    340 S, Lemon Ave #1537,
    Walnut, 91789
    California, United States
    340 S Avenue #1537,
    Walnut, 08999
    California, United States

Configuring Tax Codes for your Products (Plans and Addons) 

Avalara uses the tax code to determine the tax rate for each product. Apart from this, taxable and non-taxable products will also be automatically differentiated using tax codes. More on this here .

As soon as Avalara is configured for your site, the Avalara Tax Code field will be available for Plans and Addons. Add the corresponding tax codes here using this Avalara tool .

For taxable products, if the Avalara Tax Code field is not filled in Chargebee, the default tax code will be used by Avalara for that product.

For non-taxable products, the default tax code (NT) will automatically be added by Chargebee and hence the Avalara Tax Code field will not be shown.

As an alternative to configuring tax codes in Chargebee, you could create items in Avalara with the item ID matching the product (Plan/Addon) ID in Chargebee. While creating an item in Avalara, the appropriate tax code should also be provided. If you configure the tax code in both Avalara and in Chargebee, the tax code in Avalara will take override the one provided in Chargebee. However, we do not recommend configuring the tax code in Avalara as this method might be error prone.

Configuring Customer Tax Exemption 

If you'd like a particular customer to be exempted from tax, you could do so while creating the customer in Chargebee by:

  1. Enabling the option This customer is exempted from tax payment.

  2. Specifying the exemption reason using Avalara Entity Type or the Exemption Number field. If you don't provide either, then Chargebee will default the Avalara Entity Code to "Other or custom".

  • Tax exemption rules vary per US State and Territory/ Canadian Province.
  • A customer flagged as exempt from taxes (based on the Entity Code/Exemption Number provided) may be taxed in a state/province, but may not be taxed in another state.
  • If Avalara returns taxes for a state/province, then Chargebee will apply the taxes in the invoice in this case, even though the customer is marked as exempt.

Shown below is the details page of a customer with the Avalara tax fields:

Things to check before you start using the Avalara integration 

Here's a checklist you could use to integrate Avalara with your Chargebee site:

  1. Ensure that your site's Organization address is filled out accurately in both Avalara and Chargebee.

  2. If you're using Hosted Pages, ensure that the shipping/billing address field has been enabled and the Zip Code, Country, and State fields are made mandatory.

  3. Configure Nexus jurisdictions in your Avalara AvaTax account.

  4. Include tax codes for your Plans and Addons in Chargebee.

  5. Add the exemption code in Chargebee for customers who are exempted from tax.

  6. If you're an API user, ensure that the address is passed in the estimate API only if you want tax to be calculated. If the address is present, you will be charged for the tax estimate lookup.

  7. Test the integration in your sandbox site.

  8. Enable Avalara for your Chargebee live site.


This integration has the following limitations:

  • Avalara integration is currently supported for USA and Canada only. Supporting Avalara for other countries is on our product roadmap and we'll update the information here as soon as the implementation is done.

  • This integration does not support inclusive pricing.

  • The hosted pages theme "Rhapsody" does not support Avalara integration

  • When Avalara integration has been enabled (or disabled), the next billing amount is not recalculated for the existing subscriptions until the subscription is renewed or updated. This is to avoid the sudden surge of API calls that would be made to Avalara since Avalara charges are based on the number of API calls.

  • Enabling Invoice amount rounding in Chargebee will result in a total amount mismatch between Avalara and Chargebee.

Automatic Retries for Renewals and Activations 

When Avalara Credentials are invalid 

Chargebee will notify you via email if the Avalara credentials are invalid, and will prevent sign ups.

Chargebee will set off retry attempts for renewals and activation as follows:




20 hours after the initial failure


40 hours after the previous retry


60 hours after the previous retry

When Avalara's server is down 

If Avalara's server goes down, Chargebee will prevent sign ups, and will set off retry attempts for renewals and activations as follows:




30 minutes after the initial failure


60 minutes after the previous retry


120 minutes after the previous retry

You can check Avalara's status here 

Handling Refunds Made Through Chargebee 

When a payment is refunded to the customer, Chargebee will create a Credit Note for the refunded amount. This Credit Note will then be pushed to Avalara and be displayed as a "Returned Amount".

Handling Deleted/Voided Invoices 

When an invoice is voided/deleted in Chargebee, it's status will be marked accordingly in Avalara.

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