Trusted by companies in every industry
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What it does
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Feature
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Product taxability codes
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Avalara maintains predefined tax codes that track taxability for categories of software and related services regardless of the delivery methods in all U.S. states.AI-powered Item Classification uses product images to suggest the right Avalara tax code, improving accuracy and reducing manual effort. |
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Centralised tax policy administration
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AvaTax provides centralised administration to implement tax policies across the business to more accurately calculate sales and use tax across all channels. |
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Geospatial technology
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AvaTax uses proprietary geospatial technology to validate an address and match it to a nationwide database of tax regions. |
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Custom tax rules
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AvaTax allows the addition of custom tax rules to determine how items with custom tax codes are taxed, to override tax rules for the predefined Avalara tax codes. |
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Advanced transaction rules
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AvaTax allows businesses to create, modify, and apply business- and taxability-specific rules, which are executed before the tax calculation occurs. |
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Accounts payable assessment and accrual
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All AP transactions, regardless of source and processing status, will appear in an enhanced transaction list within AvaTax. It will also enable the review of variances for over- and undercharged transactions, and act on one, several, or many transactions. |
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Accounts payable single config for real-time and sourcing rules
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All configurations will be centralised within the Accounts Payable solution in AvaTax and will apply to both real-time and batch transactions with a hybrid design. |
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Sourcing rules
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Sales tax treatment based on sourcing rules (whether sales taxes should be based on the source or the destination of the transaction) varies across states. AvaTax accounts for the state-by-state variation by automatically applying sourcing rules based on the address of the seller and the “ship to” location supplied by the buyer. |
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Jurisdictional nexus
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Avalara maintains predefined jurisdictions (domestic U.S. states and local jurisdictions and non-U.S. countries) that allow an end user to easily modify their tax profile as their business grows and expands. Tax profiles can be modified to determine where and when AvaTax calculates and reports taxes (sales, use, input VAT, and output VAT) for your company. |
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Reporting
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Use Avalara’s report library with AI-driven reporting and natural-language search to generate insights, dashboards, and audit-ready trails in seconds. |
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Out-of-the-box integrations
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Connect AvaTax to 1,400+ ERPs, ecommerce, procurement, and CRM systems. With Avalara MCP servers, AI agents can discover and call APIs across platforms — enabling seamless integrations, adaptive workflows, and consistent compliance wherever business happens. |
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REST API
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The AvaTax REST API exposes the most commonly used capabilities for interacting with the AvaTax service, allowing calculation of tax, modification of documents, and validation of addresses. This allows sellers to seamlessly connect their business applications and online ordering technologies and provide a unified buying experience for the customer. |
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Integrated tax research and guidance
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Avalara Tax Research delivers authoritative, citation-backed tax content directly within the AvaTax portal. Access jurisdiction-specific rules, interpretations, and exemptions in context — helping tax teams make informed decisions and resolve questions without leaving their workflow. |
