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AvaTax 26.4.1.0

AvaTax 26.4.1.0 — Enhancements

Enhanced VAT/GST ID validation for select countries

AvaTax now supports VAT number formats aligned with country-specific legislative requirements for Australia, Norway, and Thailand.

This enhancement improves compliance alignment and allows VAT numbers to be captured and validated in accordance with local tax authority standards.

  • AvaTax validates VAT/GST IDs using country-specific formats: Australia (ABN): 11 digits Norway: 9 digits followed by MVA Thailand: 13 digits
  • AvaTax automatically standardizes VAT/GST IDs before validation, for example, by removing spaces or separators.
  • When a valid VAT/GST ID is provided, AvaTax treats the transaction as business-to-business (B2B) and applies the appropriate tax rules.
  • If the VAT/GST ID doesn’t match a supported format, AvaTax continues to process the transaction as it does today.
  • For sales transactions, AvaTax evaluates VAT/GST IDs based on the destination (Ship-To) country.
  • For purchase transactions, AvaTax evaluates VAT/GST IDs based on the origin (Ship-From) country.
  • If a VAT/GST ID doesn’t align with the relevant country, AvaTax ignores it for tax classification. AvaTax return’s no errors.

This update is fully backward-compatible. Existing VAT/GST ID formats, integrations, and API behavior remain unchanged. Expanded support for tax overrides in global transactions AvaTax now better supports global transactions by expanding how tax overrides are handled outside the United States.

Previously, tax overrides were only supported for U.S.-to-U.S. transactions. With this update, you can apply tax overrides to a broader range of scenarios, including:

  • Transactions between non-U.S. countries
  • Transactions from non-U.S. to U.S.
  • Transactions from U.S. to non-U.S.

AvaTax now includes a new account-level configuration flagEnableGlobalOOHTaxOverride.

  • When enabled, this flag allows OOH overrides for supported non-U.S. scenarios.
  • When disabled, which is the default, supports only U.S.

This update improves reliability for global transactions and helps ensure smoother processing when you need tax overrides across different countries. There’s no change to:

  • Tax calculation rules, such as sourcing and jurisdiction logic, which continue to work as before
  • Standard validation rules, which still apply to ensure accurate tax reporting
  • Marketplace and remittance behavior Support for local jurisdiction exemption certificates The Exemption Certificate Management system in AvaTax is enhanced to support local exempt certificates. This enables more accurate tax calculations in regions with complex local tax rules.

Previously, exemption certificates were applied at the state level. With this enhancement, you can apply certificates to specific local jurisdictions, such as cities or counties. This ensures that AvaTax honors exemptions only when they’re valid.

This is especially beneficial in home-rule jurisdictions, where local authorities don’t recognize state blanket exemptions (for example, 42 CO cities). What this means to you:

  • More accurate tax calculations for transactions that involve local jurisdictions
  • Proper application of exemptions only where they’re valid
  • No impact to existing certificates, which continue to work as before This feature helps improve compliance and accuracy for businesses that operate in areas with jurisdiction-specific tax rules.Expanded Basic VAT/GST Content Coverage (60 Countries) Effective April 1, AvaTax has enhanced its basic content coverage for VAT and GST calculations across 60 more countries and territories.

This expansion strengthens AvaTax’s global indirect tax support and improves baseline calculation coverage for key transaction scenarios. Countries Included in this update: | Algeria | Canary Islands | Kazakhstan | Namibia | Zambia | Mozambique | --- --- || Andorra | Corsica | Kenya | New Caledonia | Zimbabwe | Madagascar || Angola | Côte d’Ivoire | Kosovo | Nicaragua | Bangladesh | Tanzania || Anguilla | Curacao | Kyrgyzstan | Russian Federation | Lesotho Armenia | Egypt | Fiji | Sri Lanka | Malawi Azores | El Salvador | North Macedonia | Suriname | Mali Bahamas | Georgia | Madeira | Tajikistan | Rwanda Barbados | Gabon | Maldives | Ukraine | Cameroon Belarus | Ghana | Mauritius | Uruguay | Senegal Bolivia | Guyana | Moldova | Venezuela | Nigeria Botswana | Jersey | Montenegro | Vietnam | Uganda | |

Supported use cases under basic coverage

This basic coverage includes full support for the following transaction scenarios:

  • Domestic supply of goods and services (B2B and B2C), including sales and purchases
  • Import of goods and services, including sales, purchases, and customs scenarios
  • Export of goods and services

Enhancements to VAT/GST transactions

Effective May 1, 2026, Avalara has enhanced the business-to-business and business-to-consumer transaction scenarios for accurate tax calculations in VAT/GST transactions inUruguay. These:

  • Domestic sale or purchase of goods or services
  • Domestic supply or purchase of digital services
  • Export of goods or services
  • Import of goods or services
  • Marketplace-deemed supplier
  • VAT on low-value goods
  • Domestic sale or purchase of event admissions