Avalara AvaTax is your end-to-end solution for tax compliance

Make tax calculation faster, easier, and more accurate. Our cloud-based solution applies tax rates based on location, taxability, legislation, and more.

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Trusted by companies in every industry

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Video: More accurately calculate taxes in over 190 countries and autonomous territories.

BENEFITS

Simplify tax calculation across industries, borders, and tax types

Increase accuracy

AvaTax automates tax calculations for sales and purchases, so you can be confident you’re charging and being charged the correct tax. 

Integrate with ease

Avalara has more than 1,200 signed partner integrations and a robust API, so you can connect AvaTax with the business systems you already use or plan on buying.

Scale for growth

AvaTax provides calculation or estimation of customs duties and import taxes during checkout, so you can expand your business across borders while ensuring VAT and GST compliance.

Go live faster 

Avalara offers self-serve setup, contextual information display, clear usage data, and an intuitive user interface for easy onboarding.

Ensure security

AvaTax protects the security, availability, and confidentiality of your data.

Drive reliability

Avalara cloud architecture can build redundancies, address bottlenecks, and replicate data across regions.

How it works

AvaTax calculates tax rates based on item, location, legislation, and regulations

Video: Maintain compliance with automated calculations and expert support from AvaTax.

Tax types and industries:

  • Sales and use tax

  • Value-added tax (VAT)

  • Goods and services tax (GST)

  • Excise tax

  • Communications

  • Software

  • Lodging 

  • Beverage alcohol

  • Tobacco and vape

  • Manufacturing

Maintain full visibility and control

View up-to-date sales tax rates for every state

Our interactive map is optimized for mobile and further highlights our broad coverage across the tax compliance industry.

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Streamline your sales and purchase cycle

AvaTax integrates with your business systems and simultaneously exchanges tax data across your sales and purchase orders to deliver more accurate rates to you and your customers at checkout.

Sales and use tax

Automate tax calculation

Manage tax compliance from a centralized platform while reducing sales and use tax compliance risk

Automate tax calculation with Avalara Avatax

Integrations

AvaTax works with many of the business systems you already use 

Features

Discover AvaTax’s unique capabilities

Feature

What it does

Product taxability codes

Avalara maintains predefined tax codes that track taxability for categories of software and related services regardless of the delivery methods in all U.S. states. Assigning items to tax codes enables product- and item-level taxability across all channels and ordering technologies from the vendor.

Centralized tax policy administration

AvaTax provides centralized administration to implement tax policies across the business to more accurately calculate sales and use tax across all channels.

Geospatial technology

AvaTax uses proprietary geospatial technology to validate an address and match it to a nationwide database of tax regions.

Custom tax rules

AvaTax allows the addition of custom tax rules to determine how items with custom tax codes are taxed, to override tax rules for the predefined Avalara tax codes.

Advanced transaction rules

AvaTax allows businesses to create, modify, and apply business- and taxability-specific rules, which are executed before the tax calculation occurs.

Accounts payable assessment and accrual

All AP transactions, regardless of source and processing status, will appear in an enhanced transaction list within AvaTax. It will also enable the review of variances for over- and undercharged transactions, and act on one, several, or many transactions.

Accounts payable single config for real-time and sourcing rules

All configurations will be centralized within the Accounts Payable solution in AvaTax and will apply to both real-time and batch transactions with a hybrid design.

Sourcing rules

Sales tax treatment based on sourcing rules (whether sales taxes should be based on the source or the destination of the transaction) varies across states. AvaTax accounts for the state-by-state variation by automatically applying sourcing rules based on the address of the seller and the “ship to” location supplied by the buyer.

Jurisdictional nexus

Avalara maintains predefined jurisdictions (domestic U.S. states and local jurisdictions and non-U.S. countries) that allow an end user to easily modify their tax profile as their business grows and expands. Tax profiles can be modified to determine where and when AvaTax calculates and reports taxes (sales, use, input VAT, and output VAT) for your company.

Reporting

Avalara offers a comprehensive library of transaction tax reports that summarize and display transactional history to help you reconcile transactions in AvaTax with your accounting, ERP, ecommerce, m-commerce, or POS application, prepare tax returns and forms, and review your tax liabilities. With our comprehensive reporting you can review detailed jurisdictional reports all the way down to line-level details.

Out-of-the-box integrations

Avalara’s standard integrations to ERP, order management, CRM, procurement, and ecommerce technologies make AvaTax the single platform where consistent and more accurate sales and use tax rates and product taxability rules are applied across the entire quote/order creation/invoicing experience.

REST API

The AvaTax REST API exposes the most commonly used capabilities for interacting with the AvaTax service, allowing calculation of tax, modification of documents, and validation of addresses. This allows sellers to seamlessly connect their business applications and online ordering technologies and provide a unified buying experience for the customer.

CUSTOMER STORIES

See what our customers have to say

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“Working with both Avalara and Sage, Set Solutions has saved more than $300,000 annually and 30 hours per week on tax compliance tasks.” 

Missy Basone

CFO, Set Solutions

“Avalara is a game changer. With Avalara’s wide range of product offerings, they take the everyday pain points of doing business and make them simplified, streamlined, and most importantly, manageable.”

—Jacob Swager
Tax Director, Sweetwater

“Avalara has significantly reduced manual tasks, errors, and custom, complex regulations for us, minimizing the time our team spends maintaining data workflows.”

—Ricardo Rodriguez
Senior Manager of Indirect Tax, Snowflake

“Incorporating Avalara AvaTax with our ERP has proven to be a truly monumental achievement, as it empowers us to seamlessly and effortlessly obtain sales tax information, ensuring multi-jurisdictional compliance with remarkable efficiency.”

—Andre Johnson
Business Analyst, NEFCO 

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Awards

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Leader Winter 2025

Frequently asked questions

What is Avalara AvaTax and how does it work? 

Avalara AvaTax is a cloud-based tax compliance solution that automates the calculation of sales and use tax, VAT, GST, excise tax, communications tax, lodging tax, and other indirect tax types. It works by integrating with your business systems (such as ERP, accounting, and ecommerce platforms) to calculate taxes in real time based on the most current tax rules and rates. This helps ensure accurate and compliant tax calculations for every transaction. 

Can Avalara AvaTax integrate with my existing accounting or ecommerce system? 

Yes. Avalara AvaTax has more than 1,200 signed partner integrations and custom APIs for a wide range of accounting, ERP, and ecommerce systems. This integration allows for automatic tax calculations within your existing workflows, reducing manual data entry and enabling more accurate tax compliance.

How does Avalara AvaTax keep up with changes to tax rates and regulations? 

Avalara AvaTax is regularly updated with the latest tax rates and rules for thousands of tax jurisdictions. The cloud-based platform applies updates in real time, so you always have highly accurate tax information, helping you to stay compliant with changing tax laws without manual intervention.

What features does Avalara AvaTax offer for managing exemption certificates? 

Avalara AvaTax includes exemption certificate management features that collect, validate, and store exemption certificates digitally. The system automatically validates certificates during transactions, ensuring only valid exemptions are applied. It also provides a centralized repository for easy access and audit readiness, as well as automated reminders for certificate renewals.

Does Avalara AvaTax support international tax calculations? 

Yes. Avalara AvaTax supports international tax calculations, including VAT, GST, and other transaction taxes. AvaTax VAT determination capabilities accurately calculate VAT and GST based on regularly updated tax data for sales and purchases, for compliance with VAT and GST laws in over 190 countries. This makes it an ideal solution for businesses operating globally, as it helps them manage tax compliance across different jurisdictions with varying tax rules and regulations.

Can Avalara AvaTax integrate with Avalara Tariff Code Classification? 

Yes. Avalara AvaTax can integrate with Avalara Tariff Code Classification. The integration allows businesses to automatically classify products with the mandatory 6-digit Harmonized System (HS) codes or country-specific 10-digit tariff codes and Harmonized Tariff Schedule (HTS) codes that are essential for determining accurate duties and taxes for cross-border transactions. With this integration, AvaTax unifies customs duty, import tax, and sales and use tax calculations in a single platform, creating a transparent and frictionless online shopping experience for international customers.

How does Avalara AvaTax help businesses prepare for tax audits? 

Avalara AvaTax helps businesses prepare for tax audits by maintaining detailed records of all transactions and their corresponding tax calculations. The system generates comprehensive reports that can be used to demonstrate compliance during audits. Additionally, Avalara Exemption Certificate Management (ECM) helps ensure all certificates are valid and easily accessible, further supporting audit readiness.

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