# Enabling and Setting Up the Avalara Tax Plugin
**Step 1**
Activate the AvaTax plugin.
* Click on the **Admin** section from the navigation sidebar.
* Click on the **Plugins** page (Admin→Plugins)
* Click on the **Tax Services** tab.
* Click on the **Avalara** tile.
* Click **+ Activate**.
**Step 2**
Type in the required fields **companyCode, licenseKey, and accountId** that you received from **Avalara**.
**Note:** ***Username and Password may not always be required. Attempt an authorization without them then enter those fields if authentication fails.***
* Check **calculateShippingTax** to allow **AvaTax** to calculate an **additional** tax on the shipping cost.
* Check **commitTransactions** to cause transactions to be marked as **Committed** in **AvaTax**.
* Check **includesAlcohol** to calculate tax on alcoholic products. Enter the alcohol information on each product in Konnektive.
* Check **doNotRecordFinal** so transactions will **not** be committed and will **not** be marked as type "SalesInvoice". This will continue to return all tax calculations.
* Check **sendProductID** to send the base product ID as the item code. Leave the box unchecked to send the campaign product ID.
* Check **taxIncludedInPrice** to calculate VAT.
* Enter an optional **FriendlyName** to differentiate multiple AvaTax plugins
* Enter **businessIdentificationNo** to calculate taxes outside of USA and Canada. This is required to add other countries to a campaign.
* Check **excludeTestCards** to not calculate tax on test orders
When finished click on the **Connect** button.
**Note: *****Committed transactions will show in the reports created by AvaTax and will be included in the tax returns Avalara files for your company.***
**Step 3**
Once you have enabled the plugin, click on the **AvaTax** plugin tile again and then click the blue **Edit** Icon to open the **AvaTax: Advanced Setup** page.
**Step 4**
On the **AvaTax: Advanced Setup** page, click the **Test Credentials** button to verify your credentials are correct.
A successful test will display your subscription information in a popup.
If the credentials are *incorrect* you will get a pop up box with an error message.
**Note: *****After changing any credentials, you will need to click the blue "Update" button before testing again.***
**Step 5**
You can also add a new **Tax Exemption** once you are on the **AvaTax: Advanced Setup** page by clicking on the green **+ button** under **Tax Exemptions Certificates**.
**Note: *****Tax Exemption is a monetary exemption which reduces taxable income. Tax exempt status can provide complete relief from taxes, reduced rates, or tax on only a portion of items.***
**Note: *****You can add as many Tax Exemptions as you want here.***
