Avalara named a Leader in IDC MarketScape Vendor Assessment for e-Invoicing

E-invoicing requirements are complex, and they’re spreading. For multinational companies, complying with an ever-growing number of e-invoicing and live reporting requirements can be challenging. Much like U.S. sales tax laws at the state level, there are unique rules and systems for compliance based on the location in which companies do business.

Many countries have adopted different systems for e-invoicing, from simple e-invoice transmission via an open network, such as Peppol, to more complicated systems to ensure compliance. As more countries adopt e-invoicing mandates, the need for robust, scalable solutions continues to grow. 

“The complexity and volatility of e-invoicing regulations worldwide demand a compliance-as-a-service solution that can handle mandates in multiple jurisdictions,” said Edyta Kosowska, co-author of the IDC MarketScape: European Compliant e-Invoicing Solutions and Program Manager at IDC. “By adopting a solution that has wide coverage and integrates seamlessly with finance and ERP systems, businesses can not only stay compliant but also unlock opportunities to automate processes and improve efficiency. Avalara ELR [E-Invoicing and Live Reporting] offers a way for organizations to reduce the burden of e-invoicing compliance while streamlining their operations through one unified platform.”

Kevin Permenter, Research Director at IDC, reinforces the belief that businesses need to adopt technology for satisfying global e-invoicing requirements: “The breadth and variation of e-invoicing requirements globally require a single solution that can automate and address e-invoicing in any country — regardless of rules or models.”

“Our experience with Avalara E-Invoicing has been smooth, significantly improving compliance and reducing manual efforts. We chose Avalara for its seamless integration and extensive coverage. Previously, managing tax compliance across multiple vendors for different countries was challenging, but Avalara has streamlined it all into one platform.”

Atul Yadav, Lead Analyst Dynamics 365 F&O, Lifestyles Healthcare.

Avalara was named a Leader in the IDC MarketScape: European Compliant e-Invoicing 2024 Vendor Assessment. The report noted the following strengths for Avalara:

End-to-end compliance. “Avalara’s solutions cover the entire indirect tax life cycle, and the e-invoicing solution is compliant in over 60 countries globally. This ensures customers can use e-invoice data for VAT returns and reconcile VAT return data with e-invoice status. This comprehensive coverage simplifies the compliance process and reduces the risk of errors and penalties.”

Single and scalable solution. “Avalara offers a global platform handling all invoices, with a global API for single integration and a global data model providing scalable functionality. Core e-invoicing functionalities are designed as microservices for reliability and rapid deployment. This is ideal for Avalara’s customers, but its scalability is a particular benefit for growing organizations. Avalara also provides prebuilt workflows for mandates and connectors for major ERPs, with 10 more launching soon, ensuring plug-and-play interoperability with minimal end-user customization.”

Avalara is a global tax compliance provider that offers an own-build and cloud-native e-invoicing solution designed to facilitate global trade and streamline compliance processes. Headquartered in the U.S., Avalara has 15 offices globally, with centers of excellence in the U.S., India, Europe, and Brazil. It has been on the market for more than 20 years.

Avalara supports small, medium, and large organizations to address the complex and varied e-invoicing regulations across the globe with a single and scalable offering — E-Invoicing and Live Reporting (ELR). The product enables businesses to exchange e-invoices and report data in real time across various platforms and exchange networks, and comply with country-specific mandates. Avalara ELR integrates into ERP software, accounting applications, ecommerce platforms, and other business systems via a single open API. This allows businesses to exchange e-invoices through the Peppol network, local country networks, or tax authorities’ platforms in multiple countries as well as report required data to tax offices in real time.​

Read the IDC MarketScape on European Compliant e-Invoicing 2024 Vendor Assessment (Avalara excerpt) or learn more about Avalara E-Invoicing and Live Reporting here.

The IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of technology suppliers can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective suppliers.