Industry Solutions: Retail

Sales tax compliance automation for retailers


Keeping up with sales tax rates, rules, and requirements across jurisdictions can feel impossible. With an automated solution, your business can stay compliant with less effort.


Get a demo

Industry Solutions: Retail

Sales tax compliance automation for retailers

Keeping up with sales tax rates, rules, and requirements across jurisdictions can feel impossible. With an automated solution, your business can stay compliant with less effort.

Get a demo

Avalara helps solve common compliance challenges retailers face

Stay compliant with complex rates and rules, across markets and sales channels

Challenge

Selling across different channels or into new markets means tracking  inventory movement, monitoring nexus thresholds, and factoring in different product taxability rules. 

Even for jurisdictions you’re established in, rates change all the time, so you have to research ongoing changes and manually update your system.

Solution

Avalara solutions integrate with each other and over 700 common ERP, shopping cart, POS, marketplace platforms, and other business systems, so you can manage transaction data from one place.

Avalara AvaTax monitors your sales across the U.S., so you know when you’re approaching nexus thresholds and need to register to collect and remit sales tax in new states. 

Once you’ve selected where you need to collect tax, AvaTax applies regularly updated rates based on each jurisdiction's rules.

Avalara Returns keeps track of changing filing requirements and deadlines in each state, making it easier for you to file on time, everywhere you need to file.

Outcome

Know where to collect based on your company’s sales and apply the right rate for each locality — all without investing IT or finance team resources.

Manage compliance across multiple systems. Avalara serves as a single source of truth across locations, sales channels, and departments for sales tax compliance, making audits and returns filing simpler and more reliable.

Stay compliant with complex rates and rules, across markets and sales channels

Challenge

Selling across different channels or into new markets means tracking  inventory movement, monitoring nexus thresholds, and factoring in different product taxability rules. 

Even for jurisdictions you’re established in, rates change all the time, so you have to research ongoing changes and manually update your system.

Solution

Avalara solutions integrate with each other and over 700 common ERP, shopping cart, POS, marketplace platforms, and other business systems, so you can manage transaction data from one place.

Avalara AvaTax monitors your sales across the U.S., so you know when you’re approaching nexus thresholds and need to register to collect and remit sales tax in new states. 

Once you’ve selected where you need to collect tax, AvaTax applies regularly updated rates based on each jurisdiction's rules.

Avalara Returns keeps track of changing filing requirements and deadlines in each state, making it easier for you to file on time, everywhere you need to file.

Outcome

Know where to collect based on your company’s sales and apply the right rate for each locality — all without investing IT or finance team resources.

Manage compliance across multiple systems. Avalara serves as a single source of truth across locations, sales channels, and departments for sales tax compliance, making audits and returns filing simpler and more reliable.

Enable growth and diversity

Challenge

Whether selling in new markets or expanding your product line, growth often means additional tax obligations. 

Solution

Avalara AvaTax helps automate sales and use tax calculation, so you don’t have to manually update rates for each jurisdiction. 

The Avalara Cross-Border solution manages item classification as well as customs duty and import taxes calculation, so you can stay compliant while selling to an international market.

Outcome

Expand your business without devoting countless hours of human resources to managing the resulting sales tax obligations.

Enable growth and diversity

Challenge

Whether selling in new markets or expanding your product line, growth often means additional tax obligations. 

Solution

Avalara AvaTax helps automate sales and use tax calculation, so you don’t have to manually update rates for each jurisdiction. 

The Avalara Cross-Border solution manages item classification as well as customs duty and import taxes calculation, so you can stay compliant while selling to an international market.

Outcome

Expand your business without devoting countless hours of human resources to managing the resulting sales tax obligations.

Create a better customer experience

Challenge

Charging the wrong rates can cause customer frustration or negative press, harming your brand and affecting sales.

Solution

Automating tax compliance with Avalara AvaTax helps ensure your customers are paying the proper tax — on both domestic and international sales.

By charging the right rates, you maintain profit margins and keep your customers happy.

Outcome

Charge the right tax rates on your products, regardless of whether your customers complete their purchases in-store, via phone, or online.

Create a better customer experience

Challenge

Charging the wrong rates can cause customer frustration or negative press, harming your brand and affecting sales.

Solution

Automating tax compliance with Avalara AvaTax helps ensure your customers are paying the proper tax — on both domestic and international sales.

By charging the right rates, you maintain profit margins and keep your customers happy.

Outcome

Charge the right tax rates on your products, regardless of whether your customers complete their purchases in-store, via phone, or online.

Manage compliance for exempt sales

Challenge

It’s one thing to handle sales tax rates. But managing tax-exempt sales and aggregating information across business systems increases compliance risk exponentially.

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 Avalara AvaTax to automatically exempt tax on future sales if a valid certificate is on file.

Outcome

Automate exempt sales and certificate management as well as reporting and information sharing across platforms. 

Manage compliance for exempt sales

Challenge

It’s one thing to handle sales tax rates. But managing tax-exempt sales and aggregating information across business systems increases compliance risk exponentially.

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 Avalara AvaTax to automatically exempt tax on future sales if a valid certificate is on file.

Outcome

Automate exempt sales and certificate management as well as reporting and information sharing across platforms. 

The Avalara retail and ecommerce solution includes

Tax calculation

Get the appropriate tax rate for transactions made in the U.S. or abroad. 

Avalara AvaTax
Avalara Consumer Use
Avalara AvaTax Cross-Border

Documentation management

Automate management of the documents you need to stay compliant.

Avalara State Sales Tax Registration
Avalara CertCapture

Product taxability

Apply the right tax rate based on SKU or HS codes.

Avalara MatrixMaster
Avalara Item Classification

Returns management

Choose the level of returns management that’s right for your business. 

Avalara Managed Returns and Managed Returns Premium

Avalara integrations

With a robust API and over 700 prebuilt connectors, Avalara solutions integrate with existing business environments.

Why Avalara?

Avalara was built for omnichannel and ecommerce sellers. 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.

Our cloud-based, end-to-end solution helps automate nearly every step of the compliance process:

Licensing and registration in multiple jurisdictions

Exemption certificate and vendor management

Item classification and product taxability

Sales and use tax, international customs duties, VAT, GST, and specialty taxes

Audit documentation

Returns filing and remittance

“I don’t lose sleep worrying about how we’re going to deal with changing sales tax requirements. My time is spent enhancing what we’re doing to continue growing our business.”

“We are going through another audit right now and with Avalara we’re able to provide solid answers to every question from the auditor. No more guessing — we are absolutely more confident with Avalara.” 

Why Avalara?

Avalara was built for omnichannel and ecommerce sellers. 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.

Our cloud-based, end-to-end solution helps automate nearly every step of the compliance process:

Licensing and registration in multiple jurisdictions

Exemption certificate and vendor management

Item classification and product taxability

Sales and use tax, international customs duties, VAT, GST, and specialty taxes

Audit documentation

Returns filing and remittance

“I don’t lose sleep worrying about how we’re going to deal with changing sales tax requirements. My time is spent enhancing what we’re doing to continue growing our business.”

“We are going through another audit right now and with Avalara we’re able to provide solid answers to every question from the auditor. No more guessing — we are absolutely more confident with Avalara.” 

Sales tax laws and retailers

There are many ways to establish sales tax obligations and each state determines its own rules. If you have a storefront, inventory storage, a warehouse, employees, or other physical presence in a state, you may have nexus. 

Even if you don’t have physical presence, you can create nexus by completing a certain number of transactions or reaching specific sales totals in most states. You can also establish nexus by working with business affiliates in certain states.

It’s up to you to make sure you’re following the rules in each jurisdiction, and Avalara can help you keep up.

Sales tax laws and retailers

There are many ways to establish sales tax obligations and each state determines its own rules. If you have a storefront, inventory storage, a warehouse, employees, or other physical presence in a state, you may have nexus. 

Even if you don’t have physical presence, you can create nexus by completing a certain number of transactions or reaching specific sales totals in most states. You can also establish nexus by working with business affiliates in certain states.

It’s up to you to make sure you’re following the rules in each jurisdiction, and Avalara can help you keep up.

See how Avalara can help your business assess sales tax obligations and stay compliant
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