Industry solutions: Software

A cloud-native tax compliance solution for software and SaaS businesses

Automation can help you stay compliant with the ever-changing tax rules for software products and services.

Industry solutions: Software

A cloud-native tax compliance solution for software and SaaS businesses

Automation can help you stay compliant with the ever-changing tax rules for software products and services.

Avalara helps solve the common tax compliance challenges software and SaaS businesses face

Challenge:
Knowing when you’re required to collect tax in each jurisdiction is tough enough.

And once you’ve figured that out, you still have to make sure you’re using the latest rates and rules, which differ based on the type of products and services you offer.

Solution:
Avalara automatically updates sales tax data in existing business applications, accounting for how and where you sell products such as:

  • Digital goods
  • Prepackaged software
  • Cloud services
  • Software and IT services

Challenge:
The nature of software and SaaS sales often means companies of all sizes handle international sales.

With different rates, rules, and processes for each country, staying compliant can be hard for large corporations, let alone small and midsize businesses.

Solution:
Avalara offers compliance services with tax content for 190+ countries.

Choose the services you need to automate or offload:

  • VAT and GST determination
  • Fiscal representation
  • Registration
  • Returns and remittance

Challenge:
Updating sales tax rates for subscription services and recurring billing can feel impossible.

But if you get rates wrong, you risk routinely overcharging or undercharging customers. The former can lead to lost customers, the latter to noncompliance.

Solution:
Avalara integrates with major subscription and recurring billing platforms, ensuring customers are charged an updated rate when taxes change.

Challenge:
Tax-exempt sales can be difficult to process online. But in some states, software vendors are considered manufacturers, and some of their sales are exempt.

Additionally, who you sell to can affect taxability. You need an efficient exemption process for sales to nonprofit, government, and religious organizations.

Solution:
Avalara helps you collect exemption certificates as part of the transaction process, simplifying compliance in multiple ways:

  • Certificates can be submitted digitally and maintained in a database
  • Exemptions can be applied at the point of purchase and automatically omitted on future sales
  • You’ll get alerts when certificates are about to expire so you can follow up with customers
  • Certificates are available on demand for returns filing, reporting, or auditing

Our software solution is with you every step of the way

Our software solution is with you every step of the way

Step 1

Connect your business ecosystem

Manage transaction data from one place. Connect to the platforms you have now, as well as the ones you’ll need as your business grows. Avalara has over 1,000 signed partner integrations for a variety of systems, including:

  • Ecommerce platforms
  • Order management systems (OMS)
  • Marketplaces
  • Customer relationship management (CRM)
  • Enterprise resource planning (ERP)
  • Accounting software

Step 2

Automate day-to-day compliance

Calculate rates based on complex product taxability rules and exemptions

Apply complex rate changes across states and jurisdictions

Monitor sales and get alerts when you need to register and start collecting tax in new states

Collect exemption certificates and omit tax at the point of sale, whether online or in person

Determine VAT and GST rates on international sales

Step 3

Offload the burden of returns preparation and filing

Extract sales data from all your sales channels (e.g., in-store, online, dealers) to generate reports and prepare sales tax returns

Compile transaction data across all systems and channels for a complete picture of your tax liability

Create signature-ready returns and outsource filing according to individual jurisdiction deadlines

Upload tax notices so we can handle them on your behalf

Step 4

Access documents across devices and locations

Whether employees are in the office or working remotely, they have access to tax documents and can:

Produce detailed sales tax reports for all channels

Look up exemption certificates

Pull documents and reports for auditors

Avalara works with what you already use

Prebuilt connectors and a robust API help you integrate with your existing business systems or tech stack.

Avalara works with what you already use

Prebuilt connectors and a robust API help you integrate with your existing business systems or tech stack.

Avalara works with what you already use

Prebuilt connectors and a robust API help you integrate with your existing business systems or tech stack.

Avalara Accuracy Guarantee

Trust your tax calculation to Avalara AvaTax. If we get something wrong, our Accuracy Guarantee means we’ll help make it right.

See page for details

Accuracy Guarantee is subject to terms and conditions.

Avalara Accuracy Guarantee

Trust your tax calculation to Avalara AvaTax. If we get something wrong, our Accuracy Guarantee means we’ll help make it right.

See page for details

Accuracy Guarantee is subject to terms and conditions.

Trusted by

“Avalara’s reports are designed to satisfy an auditor’s expectations. So when or if an audit comes, Avalara gives us much greater confidence in the outcome.”

Beatrice Negru, Tax Analyst

Read the Duo customer story

“There are certain things that make sense to outsource. This is the perfect example. There is no need for us to become experts on sales tax and try to keep up with rate changes in different jurisdictions.”

Hector Camacho, Controller

Read the Wondersign customer story

Trusted by

“Avalara’s reports are designed to satisfy an auditor’s expectations. So when or if an audit comes, Avalara gives us much greater confidence in the outcome.”

Beatrice Negru, Tax Analyst

Read the Duo customer story

“There are certain things that make sense to outsource. This is the perfect example. There is no need for us to become experts on sales tax and try to keep up with rate changes in different jurisdictions.”

Hector Camacho, Controller

Read the Wondersign customer story

Related resources for software businesses

Related resources for software businesses

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