We are announcing an upcoming enhancement to our Direct Avalara Integration that will improve tax compliance and accuracy for transactions involving Kosovo (XK). Customers who do business in Kosovo and use the Direct Avalara Integration for tax calculation may be impacted and may need to take action.
What is Changing?
Currently, due to a legacy hardcoded mapping, transactions with the country code XK (Kosovo) are automatically sent to Avalara as RS (Serbia).
Starting with our upcoming release (2026.Q2.0.0, Sandbox in April, Production in May), we are removing this special mapping. Zuora will begin passing the XK country code directly to Avalara for all new transactions. This change aligns Zuora's integration with both Avalara's standard country configuration and international tax reporting requirements.
Why are we making this change?
The current mapping to Serbia introduces compliance risks and requires manual workarounds for Kosovo-based business. By treating Kosovo as a distinct country-as supported by Avalara-we are enabling more accurate tax calculation and reporting for your Kosovo operations.
Key Implementation Details
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Effective Date: This change will be rolled out to Sandbox environments in April along with 2026.Q2.0.0 Release, with Production to follow in May.
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Scope: This change applies only to the Direct Avalara Integration.
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New Transactions Only: The updated mapping applies only to new transactions created after the release.
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Historical Data: Refunds or adjustments on historical invoices will continue to use the RS country code as that was stored in the original tax address snapshot, ensuring consistency for past records.
Required Actions for Customers
To ensure a smooth transition, we recommend the following actions:
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Review Avalara Configuration: If you have business nexus in Kosovo, ensure that Kosovo (XK) is correctly configured as a reporting country within your Avalara portal. For details, refer to the AvaTax documentation (Update countries where you report tax). If Kosovo isn't configured correctly, AvaTax will not calculate tax for Kosovo after the upcoming enhancement is released.
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Audit Custom Rules: Review and remove any custom tax rules or workarounds you may have implemented in Avalara to compensate for the previous XK → RS mapping.
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Validate Reporting: After the release, use Avalara's Transactions by Country report to verify that new transactions are flowing correctly under the XK country code.
We're Here to Help
We recommend testing this change in your Sandbox environment once it becomes available. If you have any questions or need technical guidance during this transition, please reach out to Zuora Global Support or comment below.
Stay tuned for further updates in our official Release Notes!
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Kevin Qu
Zuora Product Manager
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