According to Avalara, the current bundle for Avatax only works when the Taxable field and tax code is shown in the header field. When Per line taxes is enabled, they are unable to find the Taxable field.
When creating invoice for tax exempt item, Avalara is computing tax.
To exempt item to Avatax when using Per-Line Taxes on Transactions:
1. Enable the TaxCode Mapping on the transaction forms
- Go to Set up > Customization > Transaction Line Fields> TaxCode Mapping.
- Under the Applies to tab > Select the transaction forms
- Under Display > Display type > Normal
2. Create a Sample Invoice to test
- Transactions > Sales > Create invoices
- Fill in all the mandatory fields
- On the TaxCode Mapping enter "nt"
Result: Tax amount will now be 0