Avalara

TL;DR

• Automates tax compliance using a unified, AI-powered platform.
• Calculates sales tax, VAT, GST, customs duties, and manages returns automatically.
• Ideal for ecommerce, SaaS, and retail businesses of all sizes needing to scale operations.
• Features over 1,400 pre-built integrations with major ERP and ecommerce systems.

What is Avalara?

Avalara is an AI-powered tax compliance automation platform that helps businesses of all sizes manage their tax obligations. It solves the complex problem of calculating, collecting, and remitting various types of taxes, including sales and use tax, VAT, GST, and customs duties. As a comprehensive compliance solution, Avalara integrates with existing business systems like ERPs and ecommerce platforms to automate tax processes, reduce risk, and ensure accuracy across domestic and international operations.

Who is Avalara for?

• Ecommerce Businesses: Retailers using platforms like Shopify, BigCommerce, or Adobe Commerce who need accurate, real-time sales tax calculation at checkout.
• SaaS and Software Companies: Businesses selling digital products and subscriptions globally that must navigate complex international VAT and sales tax rules.
• Enterprise and Mid-Market Companies: Organizations using ERP systems like SAP, Oracle, and NetSuite seeking to automate tax compliance across multiple departments and jurisdictions.
• Accounting Firms: Professionals looking for a centralized platform to manage tax compliance for multiple clients efficiently.
• Businesses Expanding Globally: Companies that need to manage cross-border customs duties, import taxes, and international tax reporting.

Key Features

• Automated Tax Calculation: Utilizes AI to provide real-time tax calculations for sales and use tax, VAT, and GST directly within your existing sales channels. This ensures accuracy at the point of transaction.
• Returns and Filing Management: Automates the preparation, filing, and remittance of tax returns across multiple jurisdictions, significantly reducing the administrative burden and risk of late filings.
• Compliance Document Management: Streamlines the collection, validation, and storage of tax exemption certificates (like Avalara Exemption Certificate Management) to ensure compliance during tax-exempt sales.
• Cross-Border and Customs Solutions: Simplifies international commerce by calculating customs duties, import taxes, and classifying tariff codes with AI, helping businesses navigate global trade compliance.
• Extensive Integrations: Offers over 1,400 pre-built partner integrations with leading ERP, ecommerce, POS, and accounting systems, including Shopify, NetSuite, SAP, and Microsoft Dynamics.

Key Use cases

• Automating sales tax calculation on an ecommerce storefront.
• Managing and filing monthly or quarterly sales tax returns across multiple US states.
• Simplifying VAT compliance for sales within the European Union.
• Calculating and applying correct customs duties and import taxes for international shipments.
• Verifying and managing tax exemption certificates for B2B sales.
• Automating use tax assessment on business purchases.

pros

• Extensive library of over 1,400 pre-built integrations ensures seamless connection with most business software.
• Provides an end-to-end solution covering calculations, returns, document management, and cross-border taxes.
• AI-powered features for item and tariff classification automate complex and error-prone tasks.
• Scalable platform designed to support businesses from small startups to large enterprises.
• Significantly reduces manual effort and audit risk, as supported by independent ROI studies.

cons

• The platform's comprehensive nature and wide range of products can be overwhelming for new users, potentially leading to a steep learning curve.
• Implementation, especially for complex enterprise systems or custom API use, may require dedicated technical resources.
• While scalable, the solution may be cost-prohibitive for very small businesses or startups with minimal transaction volume.

Pricing Information

Pricing is not publicly available. Avalara provides custom quotes based on business size, transaction volume, complexity, and specific product needs. You must contact their sales team to get a personalized pricing plan or request a demo.