Build Avalara AvaTax-Powered Applications in Cursor with CData Code Assist MCP

Cursor is an AI-powered code editor that integrates agentic AI into everyday development workflows. With support for MCP, Cursor can connect to local tools and enterprise data sources directly from the editor, enabling natural language interaction with live systems without switching context.

Model Context Protocol (MCP) is an open standard for connecting LLM clients to external services through structured tool interfaces. MCP servers expose capabilities such as schema discovery and live querying, allowing AI agents to retrieve and reason over real-time data safely and consistently.

In this article, we guide you through installing the CData Code Assist MCP for Avalara, configuring the connection to Avalara AvaTax, connecting the Code Assist MCP add-on to Cursor, and querying live Avalara AvaTax data from within the editor.

Step 1: Download and install the CData Code Assist MCP for Avalara

1. To begin, download the CData Code Assist MCP for Avalara
2. Find and double-click the installer to begin the installation
3. Run the installer and follow the prompts to complete the installation

When the installation is complete, you are ready to configure your Code Assist MCP add-on by connecting to Avalara AvaTax.

Step 2: Configure the connection to Avalara AvaTax

1. After installation, open the CData Code Assist MCP for Avalara configuration wizard

   NOTE: If the wizard does not open automatically, search for "CData Code Assist MCP for Avalara" in the Windows search bar and open the application.

   
2. In MCP Configuration > Configuration Name, either select an existing configuration or choose to create a new one
3. Name the configuration (e.g. "cdata_avalaraavatax") and click OK

4. Enter the appropriate connection properties in the configuration wizard

   The primary method for performing basic authentication is to provide your login credentials, as follows:

   • User: Set this to your username.
   • Password: Set this to your password.

   Optionally, if you are making use of a sandbox environment, set the following:

   • UseSandbox: Set this to true if you are authenticating with a sandbox account.

   Authenticating Using Account Number and License Key

   Alternatively, you can authenticate using your account number and license key. Connect to data using the following:

   • AccountId: Set this to your Account Id. The Account Id is listed in the upper right hand corner of the admin console.
   • LicenseKey: Set this to your Avalara Avatax license key. You can generate a license key by logging into Avalara Avatax as an account administrator and navigating to Settings -> Reset License Key.
   
5. Click Connect to authenticate with Avalara AvaTax
6. Then, click Save Configuration to save the Code Assist MCP add-on

This process creates a .mcp configuration file that Cursor will reference when launching the Code Assist MCP add-on. Now with your Code Assist MCP add-on configured, you are ready to connect it to Cursor.

Step 3: Connect the Code Assist MCP add-on to Cursor

1. Download the Cursor desktop application and complete the sign-up flow for your account
2. From the top menu, click Settings to open the settings panel
3. In the left navigation, open the Tools & MCP tab and click Add Custom MCP

Option 1: Manually add the MCP configuration

1. Cursor opens an mcp.json file in the editor
2. Add the code shown below and save the file

{
  "mcpServers": {
    "cdata-local": {
      "command": "C:/Program Files/Java/jdk-17/bin/java.exe",
      "args": [
        "-jar",
        "C:/Program Files/CData/CData Code Assist MCP for Avalara/lib/cdata.mcp.avalaraavatax.jar",
        "cdata_avalaraavatax"
      ]
    }
  }
}



NOTE: The command value should point to your Java 17+ java.exe executable, and the JAR path should point to the installed CData Code Assist MCP add-on .jar file. The final argument must match the MCP configuration name you saved in the CData configuration wizard (e.g. "cdata_avalaraavatax").

Option 2: Copy the MCP configuration from the CData Code Assist MCP for Avalara UI

1. After saving and testing your connection in the configuration wizard, click Next

2. Select Cursor from the AI MCP Tool dropdown

3. Follow the MCP Client Instructions to create the required folders for the MCP config

4. Copy the displayed JSON code and paste it into your configuration file
5. In Cursor, open the project folder you created with the mcp.json config
4. The Code Assist MCP add-on should appear as Running under Installed MCP Servers

Step 4: Query live Avalara AvaTax data in Cursor

1. From the top bar, click Toggle AI Pane to open the chat window
2. Ask questions about your Avalara AvaTax data using natural language. For example:

   "List all tables available in my Avalara AvaTax data connection."

   

Cursor is now fully integrated with CData Code Assist MCP for Avalara and can use the MCP tools exposed to explore schemas and execute live queries against Avalara AvaTax.

Build with Code Assist MCP. Deploy with CData Drivers.

Download Code Assist MCP for free and give your AI tools schema-aware access to live Avalara AvaTax data during development. When you're ready to move to production, CData Avalara AvaTax Drivers deliver the same SQL-based access with enterprise-grade performance, security, and reliability.

Visit the CData Community to share insights, ask questions, and explore what's possible with MCP-powered AI workflows.