Avalara AvaTax – tax services for eCommerce

Avalara AvaTax is a cloud-based solution that provides tax compliance and further automates the complexities of managing sales taxes, VAT, GST, and customs when the store owner sells worldwide.

Avalara provides millions of information and tax decisions, applying them in 193 countries around the world and in over 12 000 jurisdictions in the USA – you can see the full list here. Avalara provides a foundation for handling complex foreign transactions.

 AvaTax is constantly updating its global rules and rates that apply to the taxation of millions of products and services. Filing taxes in Avalara is possible thanks to real-time access to the most up-to-date tax rates and rules.

Tax compliance software

The main features that characterize Avalara AvaTax include:

  • Worldwide calculations

Tax settlement in Avalara is based on automatisms that allow you to calculate, inter alia, VAT, GST and customs duties in 193 countries.

  •  Calculation of consumption tax

Avalara helps you calculate one of the most difficult types of tax using intuitive tools that minimize the risk of error. AvaTax performs dedicated tax calculations.

  • Landing cost calculation

Thanks to this solution, we are able to calculate the total shipping costs before sending it abroad. These duties include tariffs, local taxes, import and export duties.

  • Ease of installation and intuitive use

Avalara allows for quick integration not only with the eCommerce system, but also with POS, CRM, ERP.

  • Management of returns

AvaTax has a reimbursement feature that takes into account any previously incurred tax costs.

  • Management of release certificates

Exemption Certificates are the form that an organization or individual presents to the seller when making a tax-exempt purchase. Exemptions are based on the purchasing customer and always require documentation. Exemptions may be made to different buyers under different state statutes that may be in force at any given location. Avalara collects all these certificates electronically, stores and manages them, making them available anywhere, anytime. Avalara allows you to serve tax-exempt customers.

Tax jurisdictions in Avalara

AvaTax includes researched and approved system tax codes that provide highly accurate product tax assessments and calculate correct rates for all products and services. AvaTax handles the latest information on how to handle rules based on where the product is shipped, where it is stored, and in the hybrid approach. It is worth mentioning that Avalara guarantees a summary and detailed reports, which ensures full visibility of all transactions.

Costs of using Avalara AvaTax

Avalara is a subscription-based solution that adapts to customer needs. Additionally, it is a cloud-based software that is easy and quick to integrate, which speeds up the use of its potential. The cost of using Avalara AvaTax depends on the plan you choose. There are currently three available:

  • The first, ‘Basic’, starts at $ 19 per month
  • The second is ‘Standard’ and costs from $ 83 per month
  • The last one is ‘Custom’, the price of which is each time determined individually, taking into account the needs of a specific customer

A detailed list of functionalities in a given plan can be found here.

Avalara in Shopify

Avalara has over 600 ready integrators for eCommerce, EPR and CRM platforms.

If your store is on the Shopify Plus plan, you can easily integrate your store with Avalara. It is worth emphasizing that if the store is not based on Shopify Plus, and another available plan (Basic, Shopify or Advanced), there is a possibility Contact the Shopify Plus team who can provide connectivity options.

Integration with Avalara can be done in two ways:

  • from the Avalara account itself or
  • via the administration panel of the store: Settings → Customs and taxes → Avalara AvaTax settings

Integration with Avalara is free, but the use of the system is paid according to the selected plan and its components.

Avalara AvaTax is one of the most popular tax management tools and it certainly makes eCommerce accounting easier. It is worth considering using it if the products offered in the store are sent to many countries – Avalara will then allow you to control tax complexities.

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