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Avalara vs. Thomson Reuters

Automating your tax compliance?

See why Avalara is the better choice.
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Avalara vs. Thomson
Avalara vs. Thomson

Avalara vs. Thomson Reuters

Automating your tax compliance?

See why Avalara is the better choice.

Avalara sets the benchmark for modern tax compliance

Embeds intelligent compliance into every workflow

Avalara AI agents monitor data and behavior, provide compliance insights and risk guidance, and automate key tax tasks — including calculation, filing, and classification. Thomson Reuters offers CoCounsel Tax, a strong AI assistant for tax research and legal workflows, but it does not deliver the agentic breadth, MCP-driven automation, and embedded compliance AI that Avalara provides across the full tax lifecycle.

Embeds intelligent compliance into every workflow

Avalara AI agents monitor data and behavior, provide compliance insights and risk guidance, and automate key tax tasks — including calculation, filing, and classification. Thomson Reuters offers CoCounsel Tax, a strong AI assistant for tax research and legal workflows, but it does not deliver the agentic breadth, MCP-driven automation, and embedded compliance AI that Avalara provides across the full tax lifecycle.

Delivers reliable, highly accurate results

Backed by expert-verified tax content spanning 190+ countries and 55B+ API calls processed, Avalara delivers rooftop-level accuracy at scale. ONESOURCE provides strong content across 12,000+ U.S. sales and use tax jurisdictions and 185 countries, but IDC has flagged that Thomson Reuters is “still developing its cloud deployment architecture strategy to include more advanced cloud technologies and APIs” — a challenge for businesses modernizing their tech stacks.

Delivers reliable, highly accurate results

Backed by expert-verified tax content spanning 190+ countries and 55B+ API calls processed, Avalara delivers rooftop-level accuracy at scale. ONESOURCE provides strong content across 12,000+ U.S. sales and use tax jurisdictions and 185 countries, but IDC has flagged that Thomson Reuters is “still developing its cloud deployment architecture strategy to include more advanced cloud technologies and APIs” — a challenge for businesses modernizing their tech stacks.

Integrates with more business systems

With 1,400+ signed partner integrations to ERPs, marketplaces, POS platforms, e-invoicing systems, and collaboration tools, Avalara connects in weeks, not months. ONESOURCE offers approximately 50 integrations and relies heavily on custom implementations that can be costly and take several months to go live.

Integrates with more business systems

With 1,400+ signed partner integrations to ERPs, marketplaces, POS platforms, e-invoicing systems, and collaboration tools, Avalara connects in weeks, not months. ONESOURCE offers approximately 50 integrations and relies heavily on custom implementations that can be costly and take several months to go live.

Over 200,000 customers across 75+ countries trust Avalara to simplify their tax compliance.

Recognized as a 2024 IDC MarketScape Leader, Avalara delivers reliable compliance solutions to help ensure accuracy, enhance agility, and prepare businesses for what’s next.

4/5

G2 rating (700+ reviews, as of 2025)

4/5

G2 rating (700+ reviews, as of 2025)

8.6/10

TrustRadius score (800+ reviews and ratings, as of 2025)
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8.6/10

TrustRadius score (800+ reviews and ratings, as of 2025)

Why businesses choose Avalara over Thomson Reuters

1. Powered by agentic AI

Avalara Agentic Tax and Compliance™ doesn’t just support tax management tasks; it actually does the work — providing efficiency and productivity on a whole new level. Thomson Reuters CoCounsel Tax is capable AI for research and advisory but operates primarily as a research copilot rather than an agentic system that monitors, acts on, and resolves compliance tasks end to end.

Capability

Avalara

Thomson Reuters

Tax automation that learns and adapts

AI-driven insights that deliver instant answers

CoCounsel Tax for research; not embedded in tax calculation/filing

MCP servers automating complex workflows

AI-powered rules that reduce manual effort

Natural language APIs that simplify integration

AI-guided onboarding for faster go-live and configuration

AI-enabled support that delivers faster, more accurate answers

Generative AI product support assistant

2. Accuracy and reliability

Avalara’s cloud-native, active-active multicloud infrastructure delivers rooftop-level tax determination — accurate to the street address — backed by the industry’s most comprehensive, regularly updated tax content. ONESOURCE Determination provides robust global tax content, but customers report its user experience as cumbersome, often requiring more technical involvement than Avalara’s modern cloud UI.

Capability

Avalara

Thomson Reuters

Real-time tax determination

Rooftop-level (address-level geocoding)

Strong; legacy UI

Comprehensive tax content (U.S. + international)

Regularly updated across 190+ countries

12,000+ U.S. jurisdictions, 185 countries; strong APAC/global coverage

Built-in tax research tools

Superior — dedicated sales and use tax research platform

Checkpoint Edge is best in class for legal/tax research, but less tailored to transactional compliance

Always-on, multiregional, multicloud
infrastructure

55B+ API calls processed; 1.14B during Cyber Week 2024

Still developing cloud architecture (per IDC); not yet advanced cloud technologies and APIs

Audit-ready accuracy

Customers cut audit prep from weeks to hours

Strong audit trail; often retained as “system of record”

AI + expert-verified tax content

AI-structured data, expert-verified rules

SSAE 18/ISAE 3402 certified content

Trusted by governments to power official rate portals

Certified SST provider

Verified tax data from trusted sources

Enterprise-grade security certifications

3. End-to-end compliance and tax type coverage

Avalara supports every stage of compliance — calculation, exemptions, returns, licensing, VAT reporting, and cross-border — with a unified platform. ONESOURCE’s products are spread across numerous modules, creating a suite-based complexity that can require separate systems for determination, compliance, certificate management, and e-invoicing. Critically, Thomson Reuters does not offer a managed returns service — they divested it in 2011, referring customers to Big 4 firms instead.

Capability

Avalara

Thomson Reuters

Returns filing and remittance automation

Full managed returns, including remittance

Limited — no managed returns service; cannot electronically file in every state

Exemption certificate management

Superior - auto-validation, renewal tracking, email campaigns, ERP connectors

Standard — CERTifyTax partnership; lacks email campaigns, vendor portals, and deep ERP workflow integration

1099 and W-9 reporting

Registrations and licensing management

Full registrations + business licensing

Managed VAT reporting

53 countries supported

Strong global VAT

Use tax management

Strong in use tax

Customs duties calculations and tariff code classification

Global trade management

E-invoicing and live reporting

IDC MarketScape Leader

Through Pagero acquisition

Product-level unique tax codes

3,000+

Unknown

Global compliance support

Strong in financial services and multinationals

Scalability across businesses of all sizes

SMB through Enterprise

Enterprise-focused; limited appeal for SMB/midmarket

4. Easy integration with business systems

Avalara’s API-first platform and 1,400+ signed partner integrations enable most customers to go live in weeks, not months. ONESOURCE has approximately 50 integrations and relies heavily on custom implementations — even in SAP and Oracle, their acknowledged strength, go-live timelines are significantly longer. IDC notes Thomson Reuters’ user experience challenge: “with that complexity comes the challenge of balancing modern demands for user experience with deep functionality.”

Capability

Avalara

Thomson Reuters

All-in-one compliance platform

Limited — suite-based architecture; products often siloed

Signed partner integrations

1,400+

~50

ERP integrations (SAP, Oracle, NetSuite, Microsoft)

Prebuilt connectors, faster go-live

Strong SAP/Oracle but custom, consulting-heavy

Marketplace integrations

Limited

POS integrations

Limited

E-invoicing platform integrations

Via Pagero

Typical time to value

Weeks — prebuilt connectors, remote onboarding, sandbox testing

Months — consulting-heavy; more manual implementation

User interface and reporting

Modern, intuitive cloud UI; real-time reporting

Described as cumbersome by customers; requires more technical involvement

Ongoing maintenance

Auto-updated content, versionless delivery

Still developing advanced cloud technologies (per IDC); periodic upgrades

What customers say about Avalara

“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
Sweetwater
Sweetwater

“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
Snowflake logo
Snowflake logo

“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 multijurisdictional compliance with remarkable efficiency.”

  • Andre Johnson
  • Senior Business Analyst, NEFCO

“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 multijurisdictional compliance with remarkable efficiency.”

  • Andre Johnson
  • Senior Business Analyst, NEFCO

See Avalara in action

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