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Automate consumer use tax and sales tax compliance from one platform

Avalara AvaTax for Accounts Payable simplifies complex tax assessments, integrates with the most commonly used systems, and ensures more precise tax allocations.

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Video: Connect your accounts payable system with AvaTax for Accounts Payable to help automate consumer use tax compliance.

BENEFITS

Elevate tax compliance for your purchases with streamlined automation and control

Improve accuracy

Reduce the risk of errors and penalties with more accurate tax calculations and reporting.  

Increase efficiency

Streamline your processes to save time and free up resources for business-critical tasks.

Enhance compliance

Stay ahead of changing tax laws and regulations to reduce the risk of noncompliance. 

Fine-tune your thresholds

Enhance thresholds and tolerances to ensure your consumer use taxes are managed exactly the way you need.

Manage vendors

Identify trusted vendors to streamline the review process and pinpoint high-risk vendors for additional evaluation.

Simplify tax management

Unify data from multiple procurement systems, use your own templates to map transaction fields, and streamline the batch upload process.

How it works

Connect your purchasing software with AvaTax for Accounts Payable

Video: Tailor AvaTax for Accounts Payable to your specific business needs.
  • Manage use tax compliance and maintain control
    Set limits for undercharged and overcharged scenarios, giving you peace of mind that every transaction aligns with your expectations. 
  • Catch vendor sales tax errors and avoid liability
    Identify overpaid and underpaid tax on your purchases and apply the correct tax based on jurisdiction, taxability, and special rules. 
  • Reconcile transactions and automate use tax compliance 
    Apply use tax owed on your returns automatically and avoid penalties and interest for underpayments. Identify and resolve overpayments of sales tax from vendor purchases.
  • Get support for Canadian Provincial Sales Tax (PST)
    Automate the accrual of PST on purchases in Quebec, Manitoba, British Columbia, and Saskatchewan.

Automate complex financial tax processes from a centralized platform

Consolidate compliance for procure-to-pay processes in one location

Centralize tax compliance in the Avalara Portal to manage sales, purchases, and returns. 

  • Calculate use tax on returns with reporting and annotations on overpayments for credit tracking and refunds.

  • Streamline reporting for reconciliation and audit support with your general ledger.

Unify configurations to automate consumer use tax compliance

Allocate consumer use tax automatically using customized and advanced transaction rules to simplify decision-making.
  • Manage cost centers and purchases to apply tax rates based on where and how your purchases are used. 
  • Increase the accuracy of tax calculations in Canada by accruing PST on any provincial taxes owed. 
  • Assign enhanced thresholds and variance rules to identify high-risk or low-risk purchases and manage multiple point-of-use tax allocations.

Integrate with your business applications

Connect to the business systems you’re already using with our prebuilt integrations or robust API. 

  • Capture purchase activity in real time and quickly resolve overpayments and underpayments on your vendor purchases.

  • Gain better control by setting different thresholds on your batch uploads or integrated system.

  • Simplify the batch uploads with customizable transaction templates.

INTEGRATIONS

Avalara AvaTax works with many of the business systems you already use

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Related products

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Self-assess your consumer use tax liability without relying on complicated spreadsheets or expensive custom solutions.
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Dive deeper

Want to learn more? Here are some resources to get you started.

Frequently asked questions

How does Avalara AvaTax for Accounts Payable work with my purchasing process?

Our solution provides centralized configurations within AvaTax, integrates with the most commonly used systems, and uses real-time and batch transactions for use tax calculation and reporting.

Is sales tax the same as consumer use tax?

Sales tax is assessed at the time of purchase and remitted to the government by the seller. Consumer use tax is self-assessed after the point of purchase, based on a variety of factors, and remitted to the government by the buyer. 

What can create a consumer use tax requirement?

Generally, consumer use tax obligations are incurred on purchases when the vendor undercharges or does not charge sales tax. Use tax can also affect previously purchased products, depending on how or where they’re used. 

Why is consumer use tax so difficult to manage?

Self-assessment is a manual, resource-intensive process. Use tax rules and rates are also complex and subject to change. 

Connect with Avalara

Learn how automation can help you stay compliant with use tax obligations.