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Avalara

by Avalara · Tax Compliance

Cloud tax calculation, returns filing and e-invoicing across jurisdictions.

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Works with
NetSuite, SAP, Oracle, Microsoft Dynamics 365, Sage, Acumatica, Other
Deployment
Cloud
Company size
SMB, Mid-market, Enterprise
Pricing
Quote-based
Founded
2004
Headquarters
Seattle, United States

Overview

Avalara is a cloud-based tax compliance platform that automates the end-to-end indirect tax lifecycle, from sales and use tax calculation through returns filing, registration, exemption certificate management and e-invoicing. Its AvaTax engine determines tax in real time against a database covering more than 12,000 U.S. sales and use tax jurisdictions and tax content for 190+ countries.

The company built its business on a large library of pre-built connectors, with more than 1,400 signed partner integrations across accounting, ERP, e-commerce, billing and point-of-sale systems so tax determination can be embedded directly in existing transaction workflows. Beyond calculation, the platform handles returns preparation and remittance, business license and registration management, document and certificate storage, and cross-border customs and tariff classification.

Founded in 2004 and headquartered in Seattle, Avalara was publicly traded on the NYSE before being taken private by Vista Equity Partners in an $8.4 billion transaction completed in October 2022. It serves businesses ranging from small online sellers to large enterprises.

Screenshots & demo

Demo video from the vendor's YouTube channel.

Features & capabilities

Sales & Use Tax Calculation

Real-time determination of US sales and use tax.

  • AvaTax real-time rate and rule determination across 12,000+ US jurisdictions
  • Address validation and rooftop-accurate jurisdiction assignment
  • Product taxability mapping via tax codes
  • Economic nexus tracking with threshold alerts
  • Sales tax holidays and special district rules
  • Consumer use tax (purchase-side) determination

Returns & Remittance

Automated preparation and filing of indirect tax returns.

  • Avalara Returns prepares, files and remits across multiple jurisdictions
  • Consolidated funding and single remittance
  • Managed (outsourced) returns service option
  • Notice management and reconciliation

Global VAT & Cross-Border

International indirect tax and trade compliance.

  • VAT and GST determination for 190+ countries
  • Cross-border customs duty and import tax calculation
  • HS tariff code classification
  • Landed cost estimation at checkout

E-Invoicing & Live Reporting

Compliance with global electronic invoicing mandates.

  • Avalara E-Invoicing and Live Reporting for international mandates
  • Continuous transaction control (CTC) support
  • Government platform connectivity
  • Format conversion and validation

Registration & Licensing

Manage tax registrations and business licenses.

  • Sales tax registration in new jurisdictions
  • Business license research and filing
  • Registration tracking across states

Exemption Certificate Management

Collect, validate and store exemption documentation.

  • Certificate collection and storage (CertCapture)
  • Automated validation and expiry tracking
  • Audit-ready document retrieval

Common use cases

  • An e-commerce retailer automating sales tax across all states where it has nexus
  • A multi-channel seller consolidating tax across Shopify, Amazon and its ERP
  • A manufacturer managing consumer use tax on purchases and exemption certificates
  • A SaaS company tracking economic nexus thresholds as it scales nationally
  • A multinational handling VAT determination and returns across the EU
  • An importer estimating landed costs and duties at checkout
  • An enterprise meeting new e-invoicing mandates in multiple countries
  • A finance team outsourcing returns preparation and remittance

Strengths & considerations

Strengths

  • Very large connector ecosystem with 1,400+ signed pre-built integrations
  • Broad product breadth spanning calculation, returns, registration, licensing, certificates and e-invoicing in one vendor
  • Strong presence in the SMB and mid-market e-commerce segment

Considerations

  • Pricing is transaction- and module-based and can scale unpredictably with volume
  • Returns and some services are sold as separate modules on top of calculation

ERP integrations

Prebuilt connectorBi-directional
Prebuilt connectorBi-directional
Prebuilt connectorBi-directional
Prebuilt connectorBi-directional
Prebuilt connectorBi-directional
Prebuilt connectorBi-directional
Other
REST APIBi-directional

AvaTax REST API for custom systems

Pricing

Model
Quote-based
Free trial
Yes

Pricing is typically based on transaction volume and the modules selected (calculation, returns, registration, e-invoicing); quotes are tailored by business size. Get an independent shortlist with pricing guidance below.

Technical & security

Hosting
SaaS (multi-tenant)
Data residency
US, EU
Compliance
SOC 1, SOC 2
Mobile app
No
Languages
English

About the vendor

Founded
2004
Headquarters
Seattle, United States
Employees
~4,000
Ownership
Private equity

Alternatives to Avalara in Tax Compliance

Avalara — frequently asked questions

Does Avalara file sales tax returns for me?

Yes. Avalara Returns prepares, files and remits returns across jurisdictions, with optional managed/outsourced service. It is sold as a module separate from the AvaTax calculation engine.

How many ERP and platform integrations does Avalara have?

Avalara reports more than 1,400 signed partner integrations, including pre-built connectors for NetSuite, SAP, Oracle, Dynamics 365, Sage, Acumatica and many e-commerce platforms.

Does Avalara handle international VAT and e-invoicing?

Yes. It provides VAT/GST determination for 190+ countries and an E-Invoicing and Live Reporting product for global electronic invoicing and continuous transaction control mandates.

Is Avalara still a public company?

No. Avalara was taken private by Vista Equity Partners in an $8.4 billion deal completed in October 2022 and no longer trades on the NYSE.

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