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AvaTax 26.5.2.0

AvaTax 26.5.2.0 — Enhancements

Enhancements to VAT/GST transactions Effective July 1, 2026, Avalara has enhanced business-to-business and business-to-consumer transaction scenarios for more accurate tax calculations in VAT/GST transactions in Ukraine.

These transactions include:

  • Domestic supplies of goods or services, including digital services
  • Domestic supplies of VAT on event-related and similar services and goods, taxed based on the location where the service is physically rendered
  • Export of goods and services
  • Import of goods and services, including support for the reverse charge mechanism
  • Import de minimis threshold
  • Input VAT recoverability rules
  • Marketplace deemed supplier rules AvaTax tax code reclassification for passenger car rental and leasing services Effective June 15, 2026, AvaTax is reclassifying tax code PR100300 – Rental and leasing / passenger car rental from a product classification (IsPhysical = True) to a service classification (IsPhysical = False).

This update aligns the tax code with the VAT treatment of passenger car rental and leasing activities as services in applicable jurisdictions. This change applies to the following jurisdictions:

  • All European Union member states, including the autonomous regions of Azores and Madeira, Portugal
  • United Kingdom
  • Northern Ireland
  • Isle of Man

Transactions that use tax code PR100300 will be treated as services for VAT determination in the affected jurisdictions. AvaTax will apply service-based VAT rules for these transactions.

This update affects all users who use tax code PR100300 within the jurisdictions listed above.

The updated classification impacts:

  • VAT determination outcomes, because place-of-supply rules for services can differ from those for goods
  • Downstream integrations, reporting, compliance, or workflows that rely on product-versus-service classifications

Users who use tax code PR100300 should review their tax configurations, reporting processes, and any downstream systems that depend on tax code classifications. Make sure they align with the updated service treatment before June 15, 2026.

This change supports more accurate VAT determination and compliance by aligning the tax code with applicable service tax treatment rules. Company code added to applicable AvaTax reports Company Code is now available as a standard field in applicable AvaTax reports. This makes it easier to identify and work with transactions across multiple entities.

Previously, users often had to perform additional manual steps to determine which company a transaction belonged to. With Company Code now included in supported reports, you can more quickly filter, sort, and review report data. This reduces the time and effort required for reporting and analysis.

The benefits include:

  • Reduces manual effort when you review multi-entity transaction data.
  • Simplifies report filtering and sorting by company.
  • Speeds up report analysis and reconciliation activities.
  • Helps you quickly identify entity-specific transactions.
  • Improves reporting efficiency for organizations that manage multiple companies.