3157132 - The Combination of External Tax Determination Configuration with Vertex/Avalara Integration is Not Supported

When you setup Vertex, you have configured all of the relevant states and added all customer tax exempt details. The customer tax details do not exist in the system, but you expect that this is not required since the integration will determine the taxability based on the settings in Vertex.

Also, you have a rule defined in External Tax Determination. The tax determination rule is only intended to force the US Tax Country on the sales order or customer invoice. Through external tax event determination, tax event is enforced as 310.

However, the system is still charging sales tax on an invoice even though the customer is defined in Vertex as non-taxable.

SAP Business ByDesign

Customer Invoice; Vertex; Avalara; External Tax Determination; Combination , KBA , AP-TTE-TC , Tax Calculation , Problem