Purpose-built tax compliance for construction companies
Avalara automates project-based sales and use tax, AP use tax accruals, exemption management, and returns filing to support audit readiness across every job.
Simplify construction tax compliance with purpose-built automation
Navigate state-specific tax rules
Apply construction-specific tax requirements, including state-level contractor rules and returns, using compliance logic aligned with business regulations.
Improve job-level tax accuracy
Calculate sales and use tax in real time based on job structure, contractor role, material and labor classification, and jurisdiction — all within your ERP environment.
Automate AP use tax accruals
Accurately accrue and post use tax on vendor invoices and inventory transfers to reduce reconciliation effort and support more accurate job-level reporting.
Centralize exemption certificate management
Send, collect, apply, and track exemption certificates then let AI ingest, classify, and validate them. Monitor renewals, reduce risk, and improve documentation control.
Scale compliance across projects and states
Standardize tax logic across projects and jurisdictions to support multistate construction operations with greater consistency and centralized compliance management.
Strengthen audit readiness
Generate project- and job-level reports and maintain organized documentation to support faster audit response and improved compliance visibility.
Tax compliance solutions designed specifically for construction companies
Avalara AvaTax
Calculate real-time sales and use tax by job, contractor role, and jurisdiction inside your ERP.
Buyers’ guide to tax compliance automation for construction businesses
Get a structured framework for evaluating, comparing, and selecting tax compliance automation solutions aligned with the compliance needs of construction businesses.
Sales tax requirements for construction contractors
Learn how sales and use tax applies to construction contractors, including material vs. labor taxability, contract types, and state-by-state differences.
