INDUSTRY SOLUTIONS: MARKETPLACE

Tax compliance for marketplaces of all sizes

Marketplaces are under increasing scrutiny from taxing authorities around the globe. Fortunately, automated tax compliance solutions can help marketplaces of all sizes avoid the fines and penalties associated with noncompliance.

INDUSTRY SOLUTIONS: MARKETPLACE

Tax compliance for marketplaces of all sizes

Marketplaces are under increasing scrutiny from taxing authorities around the globe. Fortunately, automated tax compliance solutions can help marketplaces of all sizes avoid the fines and penalties associated with noncompliance.

Avalara helps solve common compliance challenges marketplaces face

Improve compliance without increasing workload

Keep up with marketplace facilitator laws and tax rates and rules that differ from state to state and internationally.
 
Challenge:
Knowing when you’re responsible for taxes in each jurisdiction is tough.

Then you have to figure out all the varying tax rates and rules for all the products your sellers list. It feels impossible.

SOLUTION:
Avalara AvaTax provides automatic updates, deployed quickly without diverting effort from your IT department or requiring technical know-how from your finance team.

Get the right solution for now — and later

Get international products you need, when you need them, without paying for them if you don’t.
 
Challenge:
Finding a solution for now is one thing, but if you’ve got growth in mind, vendor lock-in is a real concern.

You don’t want to invest time and energy in a platform that won’t work if you expand into global markets.

SOLUTION:
With Avalara, you can add products to help you navigate the complexities of cross-border sales, when you need them.

Be transparent about rates on international sales

Customers can see exactly how much their items will cost, creating a smooth experience and avoiding surprise charges on delivery.
 
Challenge:
Getting international taxes and duties right is a hassle. Charge too little, and your sellers lose money. Too much, and they lose the sale.

Letting the customer deal with the charges on delivery just means they’ll be angry and may even reject the shipment.

SOLUTION:
Avalara calculates import tax, customs duty, and sales and use tax in a single platform and API call, at the point of purchase.

Attract B2B sellers

Give your marketplace a competitive edge by creating a better experience for B2B sellers, their vendors, and their customers.
 
Challenge:
Tax-exempt sales can be difficult to process online. If the platform just applies tax, the seller’s accounting department has to issue credits or rebills. It’s time consuming and customers don’t like paying taxes they don’t have to.

SOLUTION:
Avalara CertCapture collects exemption certificates as part of the transaction process, whether the sale is made in person or online. CertCapture then works with AvaTax to automatically exempt tax on future sales if a valid certificate is on file.

Avalara VendorCapture enables FATCA compliance by collecting, validating, and maintaining Forms W-8 and W-9 for federal tax withholding compliance.

Tax authorities are focusing on marketplaces as revenue sources

In the wake of the South Dakota v. Wayfair, Inc. U.S. Supreme Court decision, states have turned their attention to marketplace platforms.

Initially, sellers were responsible for collecting and remitting where they had nexus. But states are seizing on opportunities to hold marketplaces responsible for the activities of their collective sellers. As of August 2020, only seven states had yet to enact marketplace facilitator laws.

2021 legislative changes

And it's not just in the U.S. New UK obligations on marketplaces, requiring the platforms themselves to collect and report VAT on behalf of their sellers, take effect January 1, 2021, with similar EU rules following in July. See how this impacts your business, and find potential solutions.

Implementation

With a robust API and over 1,000 signed partner integrations, we can integrate with simple business environments or an omnichannel tech stack. We offer an assisted implementation process with a designated GoLive Coordinator​ and training sessions for the entire team.

It’s official:
Avalara is a Leader in tax automation software

IDC MarketScape named Avalara a Leader in Worldwide SaaS and Cloud-Enabled Sales and Use Tax Automation Software for Small and Midsize Business

If you’re considering tax automation, check out the independent IDC MarketScape evaluation.

Why Avalara?

Avalara was built for the ecommerce space. Our rates are delivered quickly, even during high sales periods like Cyber Monday, when in 2019, our system handled 298% more than the average daily number of tax engine calls for that year.

Avalara is also an SST certified service provider, which means participating states will help cover the cost of registration, sales tax calculations, returns preparation, and state filing and remittance for qualified businesses.

Our cloud-based, end-to-end solution automates every step of the compliance process:

Licensing and registration in multiple jurisdictions

Exemption certificate and vendor management

Managed Tariff Code Classification

Sales and use tax, cross-border taxes, VAT, GST, and specialty taxes

Audit documentation

Returns filing and remittance

Trusted by

“In my past lives, I’ve done a lot of integrations with some pretty nightmarish systems. Avalara was very, very easy. I had no trouble understanding the logic, which was clear and consistent.” 

Joshua Provonchee, Software Engineer

Read the Discogs' customer story

Avalara is a partner that we can count on to deliver great service to our clients. The Avalara system is reliable and our integrations with them consistently perform at a high level. We enjoy working with them at all levels of our organization.”

Jason Heckel, Senior Director of Tax

Read the Zillow customer story

Connect with Avalara

See how Avalara can help your marketplace meet the demands of new collection and reporting requirements

Connect with Avalara

See how Avalara can help your marketplace meet the demands of new collection and reporting requirements