Please note these updated Supplemental Terms will apply to your Avalara Service upon any renewal, upgrade, or service purchase made on or after January 1, 2022.

Avalara VAT Supplemental Terms

Last updated January 1, 2022.

These Avalara VAT Supplemental Terms (“VAT Terms”) govern Customer’s access to and use of the following Avalara solutions relating to value added and indirect tax (“VAT”):  (i) Avalara’s VAT Reporting solution for creating and electronically filing VAT returns and other indirect compliance reports (“VAT Reporting”), (ii) Avalara’s VAT Engine solution for calculating VAT rates (“VAT Engine”), and (iii) Avalara’s VAT Expert solution for identifying the appropriate treatment for VAT transactions (“VAT Expert”) (collectively “VAT Services”). These VAT Terms are in addition to and incorporate by reference the Avalara Service Terms and Conditions available at (the “Terms”). Any capitalized terms used and not defined in these VAT Terms have the meaning given in the Terms.


a. Order Document. The specific VAT Services purchased by Customer, the scope of the VAT Services, and the associated fees will be specified on the Order Document.

b. Customer Tax Requirements; Tax Data. Customer is solely responsible for (i) any analysis of its VAT-related tax requirements; (ii) the accuracy and completeness of all Customer Data necessary to calculate VAT, complete a VAT return, or otherwise provide or use the VAT Services (the “Tax Data”); (iii) confirming the accuracy and completeness of any results of the VAT Services; and (iv) properly setting up, configuring, and maintaining Customer’s tax profile and correctly classifying items it sells. Avalara does not audit, validate, or verify Tax Data. Customer will cooperate with reasonable requests from Avalara related to the VAT Services.

2. VAT REPORTING. The terms in this Section 2 apply to VAT Reporting.

a. Pricing. Except as otherwise provided in the Order Document, Customers will pay an annual subscription fee for VAT Reporting consisting of (i) a base service fee based on the number of unique VAT registrations for which Customer files VAT returns; and (ii) service fees for specific activity modules purchased for the countries for which Customer uses VAT Reporting (which fees may be referred to as “country activity service fees”); and (iii) if applicable, a service fee for substantial invoice volume.

3. VAT ENGINE. The terms in this Section 3 apply to VAT Engine.

a. Pricing. Except as otherwise provided in the Order Document, Customer will pay an activation fee and annual subscription fee for VAT Engine based on the number of VAT Documents in Customer’s subscription tier.

b. VAT Document Definition. A “VAT Document” is any record that Customer enters, uploads, or otherwise records in VAT Engine. Documents include, for example, sales invoices, purchase invoices, and credit notes. Each such record will count as one VAT Document for purposes of calculating usage of VAT Engine, as will each subsequent alteration of the record.

c. Upgrades and Overages. If Customer exceeds the number of VAT Documents set forth in its Order Document, Customer may choose one of two options: (i) pay a per-VAT Document overage charge, or (ii) upgrade to the next highest subscription tier. At any time prior to exceeding the purchased number of VAT Documents, Customer may change the selected option. Overage fees for the Initial Subscription Term will be charged at the rate specified in the Order Document, and in any Renewal Subscription Term, Avalara’s then-current overage rates will apply.

4. VAT EXPERT. The terms in this Section 4 apply to VAT Expert.

a. Pricing. Except as otherwise provided in the Order Document, Customer will pay an annual subscription fee for VAT Expert based on the number of Authorized Users specified in the Order Document.

5. HOSTED SOFTWARE. If Customer accesses and uses VAT Services through a dedicated software instance for Customer that is hosted by Avalara through a third-party service (the “Hosted Software”), the following terms apply:

a. Services. For the avoidance of doubt, Customer’s access and use through the Hosted Software of the VAT Services constitutes “Services” under the Terms.

b. Fees.

i. VAT Reporting (Hosted).  Except as otherwise provided in the Order Document, Customers will pay an annual subscription fee for VAT Reporting accessed through Hosted Software consisting of (i) a base service fee; (ii) a service fee based on the number of unique VAT registrations for which Customer files VAT returns (which may be referred to as the “registration module”); (iii) a service fee based on the number of unique countries in which Customer files VAT returns (which may be referred to as the “country module”); and (iv) a fee for hosting services.

ii. Other Services (Hosted). In addition to the fees for the applicable VAT Service described above, Customer will be charged a fee for hosting services.

c. Remote Access. Avalara may change the method by which Authorized Users access the VAT Services in the hosted environment with advance notice to Customer.

d. Updates and Upgrades. Avalara may from time to time release versions of the Hosted Software that include updates, modifications, and corrections (“Updates”), or new versions or releases that include significant function and feature enhancements (“Upgrades”). Updates and Upgrades may include, without limitation, updates to tax rates and forms, other modifications reflecting changes in laws or regulations, virus updates, security patches, bug fixes, error corrections, other maintenance releases, or function or feature modifications or enhancements. The determination of whether and when to release Updates or Upgrades will be made by Avalara in its sole discretion. Customer agrees that Avalara may apply such Updates and Upgrades to the Hosted Software at any time without advance notice to Customer, provided that Avalara will notify Customer by email or on Customer’s console after applying an Update or Upgrade.

6. INAPPLICABLE PROVISIONS OF THE TERMS. The following provisions of the Terms do not apply to VAT Services:

a. The section of the Terms entitled Trial Period; and 

b. The section of the Terms entitled Automatic Upgrades and Overages.  

The obligations of Avalara relating to VAT Services that Avalara delivers on a software as a service (“SaaS”) basis and to uptime statistics, status updates, and Service availability, in each case contained in the section of the Terms entitled Avalara’s Responsibilities, do not apply to VAT Services that Avalara delivers other than on a SaaS basis; provided that such obligations relating to Service availability apply to VAT Services that are accessed through Hosted Software.

7. AUDIT; EXCESS USE. Customer will be responsible for any use of the VAT Services in excess of the amounts specified in the applicable Order Document and will cooperate with Avalara to ensure that Avalara is properly compensated for any excess usage. Avalara has the right to audit Customer’s use of the VAT Services, both during the Subscription Term and upon renewal of a Subscription Term. Without limiting the generality of the foregoing, Customer agrees that (a) upon Avalara’s request, Customer will promptly provide to Avalara such information as Avalara may reasonably request with respect to Customer’s usage of the VAT Service, including (if applicable) a report generated from the applicable VAT Service detailing Customer’s usage over the period specified by Avalara in its request; and (b) in the case of VAT Services provided by Avalara on a SaaS or Hosted Software basis, Avalara may generate such a report without notice to Customer. Customer will pay the applicable fees associated with any excess usage upon receipt of an invoice from Avalara.

8. UNSUPPORTED FUNCTIONALITY.  Avalara may, in accordance with the notice requirements contained in Section 9(b)(i)(2) (Avalara’s Warranties), materially reduce a VAT Service or cease supporting functionality with respect to a VAT Service effective as of the date specified in the notice or the Documentation; provided that Avalara will not materially reduce the VAT Reporting Service or its features or functionality during a Subscription Term. In such case, the following shall not apply to Customer's continued use of such functionality beyond such date: (i) the support obligations contained in Section 2(c)(iii) (Avalara’s Responsibilities), (ii) the warranty obligations contained Section 9(b)(i) (Avalara’s Warranties), and (iii) any timeliness or accuracy guarantees set forth in any applicable Supplemental Terms.

AVATAX FOR VAT.  For the avoidance of doubt, these VAT Terms do not govern Avalara’s AvaTax for VAT service. Supplemental Terms for AvaTax, including AvaTax for VAT, are located at