Before the system calculates taxes, it determines which taxes apply to the addresses that ship and receive the goods—for example, state sales tax, local tax, and value added tax. A tax environment is a set of tax types that applies to a combination of ship-from and ship-to tax zones and, optionally, a customer or supplier tax class.

Use Tax Environment Maintenance (29.3.1) to define a tax environment for AvaTax. Ensure that you add each of the tax types defined previously to the AvaTax environment.