Most states have economic nexus rules, which means you need to register there if you reach a certain sales threshold. Some states count exempt sales toward their nexus threshold; others omit them.

Avalara monitors nexus thresholds in each state, according to individual state rules. You’ll get an alert when your business triggers an obligation to collect sales tax or exemption certificates.

Tax rates don’t always align with ZIP codes. And using rate tables doesn’t account for special product taxability rules or sales tax holidays.

Each state has its own rules for filing frequency and deadlines. States also have different requirements for filing if you haven’t had a recent sale in their jurisdiction.

Whether selling in new markets or expanding your product line, growth often means additional tax obligations. Avalara offers a variety of standalone and add-on products to address different needs, including: 

• Licensing

• Specialty tax calculation

• Advanced exemption management

• International tax compliance

While sales tax compliance isn’t a revenue-generating task in and of itself, staying compliant can help you avoid penalties and fees during an audit.

There are other indirect ways automating the process can improve your cash flow:

• Collecting the appropriate amount of tax at the point of sale reduces the expenses and hassles of overpayment, underpayment, and rebilling

• Offloading time-consuming tasks can help limit headcount and allow staff to focus on more lucrative assignments

• Properly applying or exempting tax makes for a better customer experience, helping to improve customer retention and reduce abandoned carts

While we can provide pricing for Avalara solutions, it can be a bit trickier to determine how much it costs to use a manual compliance process. Our cost of manual compliance calculator can give you an idea of how much you’re spending each year.

We offer a solution designed specifically for accounting professionals and services. Take a look at the Avalara Accountant Program.

Avalara has solutions specifically designed to help short-term rental property owners and managers obtain permits, register properties, calculate lodging tax rates, prepare and file returns, and remit taxes. To learn more, check out Avalara MyLodgeTax and Avalara MyLodgeTax Pro.

Yes. DAVO by Avalara connects with many popular POS systems to help you file and pay your sales tax. It’s ideal for non-ecommerce businesses.

Yes, provided you’re using the POS system from a physical location, the exact sales tax collected can be held aside by our secure tax holding account every day. Check out DAVO by Avalara to learn how.