Recurly will only send Avalara line items that you say are taxable. Configure the plans and add-ons you want to tax under Configuration > Subscription Plans > Select a plan > Click Edit.
- Select "Collect Tax" under Plan Details. This will make all plan items taxable: setup fee, plan fee, add-on fees.
- Enabling tax for the plan will expose a Tax Code field where you can place your Avalara tax code for the plan level fee.
- If you have a setup fee, it will use the same tax code as the plan fee.
- Each add-on can have it's own tax code as well.
- Save your plan. Any customer in one of your tax jurisdictions that purchases this plan will now be taxed.
Taxes are always on top of the line item's price. This means that new customers will pay your pricing plus tax and current customers in your taxing jurisdictions will see their next renewal invoice with tax added on top of their normal fees.