diff --git a/.devcontainer/avatax/docker-compose.yml b/.devcontainer/avatax/docker-compose.yml
index dfe163eeb..fb40655a0 100644
--- a/.devcontainer/avatax/docker-compose.yml
+++ b/.devcontainer/avatax/docker-compose.yml
@@ -6,6 +6,8 @@ services:
     build:
       context: ../..
       dockerfile: .devcontainer/avatax/Dockerfile
+    extra_hosts:
+      - "localhost:host-gateway"
     volumes:
       - "../..:/app"
       - "pnpm-store:/app/.pnpm-store"
@@ -13,7 +15,7 @@ services:
   dynamodb:
     image: "amazon/dynamodb-local:latest"
     ports:
-      - 8000:8000
+      - "8000"
     volumes:
       - "dynamodb-data:/home/dynamodblocal/data"
     command: "-jar DynamoDBLocal.jar -sharedDb -dbPath /home/dynamodblocal/data"
diff --git a/apps/avatax/README.md b/apps/avatax/README.md
index 81c812ffa..eca18b810 100644
--- a/apps/avatax/README.md
+++ b/apps/avatax/README.md
@@ -33,6 +33,22 @@ The development container will have two ports opened:
 1. `3000` - where the AvaTax app dev server will listen for requests
 2. `8000` - where the local DynamoDB will listen for requests and allow [NoSQL Workbench for DynamoDB](https://docs.aws.amazon.com/amazondynamodb/latest/developerguide/workbench.html) to connect
 
+### Running with local Saleor instance
+
+> [!NOTE]
+> This section assumes that your Docker engine supports `host-gateway` to resolve IP address of host machine.
+> Read more in [Docker documentation](https://docs.docker.com/reference/cli/docker/container/run/#add-host)
+
+To install the app in local Saleor instance make sure that you:
+- Set `HTTP_IP_FILTER_ALLOW_LOOPBACK_IPS=True` env variable in your Saleor
+- Set these values in app `.env` file:
+```bash
+APP_IFRAME_BASE_URL=http://localhost:3000
+APP_API_BASE_URL=http://localhost:3000
+```
+
+After this you can install app in Saleor using `http://localhost:3000/api/manifest` as the app manifest URL.
+
 ### Common commands
 
 Running the app in development server: