Fender rocks global tax compliance
Results
Increased compliance
Enabled growth
Integrated systems
Summary
Results
- Increased compliance
- Enabled growth
- Integrated systems
Tax challenges
- Company growth
- Tax complexity
- Compliance risk
Products used
- Avalara AvaTax (with VAT Determination)
- Avalara Returns
Benefits
- Simplified tax calculation and filing
- Time and effort savings
- A secure feeling regarding tax compliance
Company overview
Customer
Fender Musical Instruments Corporation
Industry
Manufacturing/Ecommerce
Tax type
Sales and use
Integrations
Epicor Prophet 21
Since the 1950s, Fender Musical Instruments Corporation has created the iconic guitars that define modern music. From garage bands to global superstars, musicians worldwide rely on Fender’s legendary Telecasters and Stratocasters. Today, Fender operates as both a traditional manufacturer selling through dealers (around 90% of its business) and an innovative direct-to-consumer brand through ecommerce and digital services.
Tax challenges
For decades, Fender’s tax setup was straightforward — sales flowed through distributors and dealers, with 98–99% as tax-exempt B2B transactions. That changed when Fender expanded direct-to-consumer sales and launched Fender Play, its global guitar-learning platform. The ecommerce shift brought immediate complexity. Previously, Fender collected basic state rates and accepted some compliance exposure. “We realized this dramatically increases potential exposure — and customer issues,” says Ryan Jones, Tax Director at Fender.
Global VAT complexity
Fender Play’s international growth multiplied the challenge. The software-as-a-service model required VAT compliance across Europe, Australia, Japan, and New Zealand. Managing constantly changing rates and rules risked overwhelming Fender’s three-person tax team. Unlike U.S. sales tax, VAT systems differ widely by country, with unique digital-service rules, thresholds, and filing requirements.
Why Avalara?
Facing mounting challenges in 2018, Fender sought comprehensive functionality without compromises. The company needed a modern, user-friendly system capable of handling both U.S. sales tax and international VAT determination.
“We needed a full-feature system where we didn’t have to make concessions on what we were trying to accomplish,” Ryan recalls. “Avalara’s system definitely looked good. It looked like it was a more modern system to deal with, very user-friendly.”
Key decision factors included automated functionality and cost-effectiveness. The business case was strengthened since Fender was already paying for tax services. “We weren’t moving from zero cost to a system, we were moving from some cost to a different cost,” Ryan notes.
Fender integrated Avalara with its SAP ERP and ecommerce platforms, fine-tuning SAP’s existing tax-jurisdiction framework to support more complex requirements — a process made smooth through close collaboration with Avalara’s responsive support team.
Customer
Fender Musical Instruments Corporation
Industry
Manufacturing/Ecommerce
Tax type
Sales and use
Integration
Tax challenges
- Company growth
- Tax complexity
- Compliance risk
Products used
- Avalara AvaTax (with VAT Determination)
- Avalara Returns
“With so many jurisdictions, the complexity makes it clear you need a system. Avalara gives us a set-it-and-forget-it approach.”
—Ryan Jones
Tax Director
“With so many jurisdictions, the complexity makes it clear you need a system. Avalara gives us a set-it-and-forget-it approach.”
—Ryan Jones
Tax Director
Results
Global VAT automation excellence
Avalara automates VAT compliance for Fender Play’s international operations, managing complex rules for digital services and software subscriptions across multiple countries. The system automatically applies correct VAT treatments and updates when rates change, eliminating manual monitoring and maintenance.
Reliable “set it and forget it” operation
Automation replaced constant oversight with confidence. “I can’t imagine going back to a pre-Avalara time,” says Ryan. The reliability allows the tax team to focus on strategic work, only reviewing sales tax monthly to confirm accuracy.
Scalable team efficiency and future-ready compliance
Avalara’s automation prevented the need for additional tax staff as Fender expanded globally. “We didn’t want to need more tax employees to handle increased work,” Ryan notes. The system works correctly “99% of the time” and adapts easily to new requirements — like California’s e-waste fee — once set up, tested, and trusted to run seamlessly.
