Sales tax compliance solutions for direct selling companies
Sales tax obligations are notoriously complicated for direct sellers. Let Avalara help you automate compliance so you can focus on revenue-generating activities.
Avalara helps direct selling and multi-level marketing companies solve compliance challenges.
Challenge:
Knowing where you have tax obligations (also called nexus) is crucial to being tax compliant.
Direct sales companies create nexus wherever their independent sales representatives do business. In some cases, nexus can be established even if they haven’t made a sale.
Solution:
Avalara helps you manage each step of compliance from registration to remittance. Direct sellers, in particular, can qualify for the Streamlined Sales Tax Program (SST), and let states offset the costs of using Avalara.
With the SST program, not only does it reduce cost, it increases your audit support.
Challenge:
Whether you’re starting as a not-for-resale (NFR) vendor or going for a full market launch, expanding product lines or territories often means additional tax complications and an increased risk of noncompliance.
Solution:
We can help you classify your product lines, determine international taxes and tariffs, and maintain compliance in markets around the world.
With regularly updated tax content for over 190 countries, Avalara helps to automate calculation and manage returns so your team can focus on more strategic tasks.
Challenge:
Charging the wrong rates can cause customer frustration or negative press, harming your brand and affecting sales.
Direct sellers are already under a high level of scrutiny from government agencies. You need to be prepared, not just with what was charged, but why.
Solution:
Automating tax calculation helps you apply the proper tax on both domestic and international sales, regardless of sales channel.
With Avalara content research and data management tools you’ll have the insights to ensure the trust of your customers.
Challenge:
Different states can classify the same product under entirely different categories, and the taxability rates and rules can change at any time.
Researching and updating rates across systems is a daunting task for any business, and mistakes can have severe consequences.
Solution:
Avalara provides an automated compliance solution with regularly updated rates and rules from multiple jurisdictions.
Avalara consolidates data for sales tax compliance across locations, sales channels, and departments, making audits and returns filing simpler and more reliable.
Our direct sales solution is with you every step of the way
Step 1
Connect your business ecosystem
Manage transaction data from one place. Connect to the systems and platforms you have now, as well as the ones you need as your business grows. Avalara has a robust API and over 1,000 signed partner integrations, including:
- MLM back-office and commission engines
- Ecommerce platforms
- Order management systems (OMS)
- Shopping carts
- Customer relationship management (CRM)
- Accounting software
- and more
Step 2
Automate day-to-day compliance
Calculate rates based on product taxability rules and exemptions through cloud automation and content delivery for offline use
Apply complex rate changes across states and jurisdictions, including tax holidays
Monitor sales and get alerts when you need to register and start collecting tax in new states
Assign HS codes and calculate customs duty and import taxes (VAT/GST)
Step 3
Offload the burden of returns preparation and filing
Extract sales data from multiple sales channels to generate reports and prepare sales tax returns
Compile transaction data across systems and channels for a complete picture of your tax liability
Create signature-ready returns and outsource filing according to individual jurisdiction deadlines
Let Avalara handle tax notices on your behalf — all you do is upload them
Step 4
Access documents, anytime, anywhere
Cloud-based technology means there’s no hardware investment, maintenance, or upgrades for IT to worry about. Whether employees are in the office or working remotely, they have anytime access to tax documents and can:
Produce detailed sales tax reports for all channels
Determine nexus obligations
Quickly pull documents and reports for auditors
It’s official:
Avalara is a Leader in tax automation software
IDC MarketScape named Avalara a Leader in Worldwide SaaS and Cloud-Enabled Sales and Use Tax Automation Software for Small and Midsize Business
If you’re considering tax automation, check out the independent IDC MarketScape evaluation.
Sales tax compliance for direct selling businesses
Avalara works with what you already use
Prebuilt connectors and a robust API help you integrate with your existing business applications.
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What our partners say
- Pause
“We appreciate it when our clients partner with Avalara because our experience has shown it to be more reliable and accurate than other common sales tax solutions. With so many moving parts to a direct sales business, it’s nice to have something we don’t have to think about.”
—Dan Weston, President
InfoTrax Systems
“Avalara is a partner that we can count on to deliver great service to our clients. The Avalara system is reliable and our integrations with them consistently perform at a high level. We enjoy working with them at all levels of our organization.”
—Rodger Smith, Founder and CEO
DirectScale
“Avalara is hands down the best tax compliance solution provider in the industry — 100% relationship focused ... Avalara is not only used by our clients in the U.S. but worldwide as well.”
—Robert Proctor, President and CEO
MultiSoft
“Avalara provides the consistent expertise that we value for our customers and that they demand in the direct selling space. Their attention to detail and their ability to apply the right technologies to the right customer is amazing!”
—Jerry Reynolds, President
Trinity Software
What our partners say
- Pause
“We appreciate it when our clients partner with Avalara because our experience has shown it to be more reliable and accurate than other common sales tax solutions. With so many moving parts to a direct sales business, it’s nice to have something we don’t have to think about.”
—Dan Weston, President
InfoTrax Systems
"Avalara is a partner that we can count on to deliver great service to our clients. The Avalara system is reliable and our integrations with them consistently perform at a high level. We enjoy working with them at all levels of our organization.”
—Rodger Smith, Founder and CEO
DirectScale
“Avalara is hands down the best tax compliance solution provider in the industry — 100% relationship focused ... Avalara is not only used by our clients in the U.S. but worldwide as well.”
—Robert Proctor, President and CEO
MultiSoft
“Avalara provides the consistent expertise that we value for our customers and that they demand in the direct selling space. Their attention to detail and their ability to apply the right technologies to the right customer is amazing!”
—Jerry Reynolds, President
Trinity Software
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