Avalara for Shopify: Automating tax compliance for Shopify merchants of all sizes

The new Avalara for Shopify integration makes it easier to automate end-to-end tax compliance for more Shopify merchants, regardless of their Shopify plan.

Omnichannel commerce, global sales, and changing regulations can make tax compliance more difficult for ecommerce businesses. The practice of selling locally in just one neighborhood, city, or state is long gone; retailers have the technology and tools to build and launch a website and reach customers all over the world.

As tech advancements enable rapid growth, government regulations and compliance requirements can complicate business operations. Ecommerce businesses must ensure they’re adequately prepared to handle expanding tax compliance requirements as they enter new markets, sell through new channels, or offer a new type of product.

Thus, a partnership between Avalara and Shopify was born. And together, we’ve been helping ease the burden of tax compliance for Shopify merchants for 10 years now.

Avalara is a longtime Shopify partner and has helped thousands of Shopify customers automate tax calculation and returns since 2015.

Tax compliance automation software and the powerful ecommerce engine behind Shopify have been helping customers like Thread Wallets, Iconic London, and Miir manage tax compliance while their business grows.

Shopify launched their Tax Platform in 2023 to provide their merchants a choice when selecting a tax compliance solution. Their growing list of partners, including Avalara, allows customers to choose a solution they know and trust,  and lets customers manage sales tax compliance in a single platform. 

Avalara-powered Shopify Tax streamlines U.S. sales tax compliance, saving businesses time and money and providing merchants address-based rate calculations, nexus tracking, and detailed reports, all integrated directly into Shopify. While Shopify Tax is suitable for many merchants, as a business expands they may choose to upgrade to the partner-led Tax Platform, which allows businesses to work directly with Avalara. 

Through the expanded partnership with Avalara, Shopify merchants of any size can easily manage and automate global tax compliance. Since joining the Shopify Tax Partner Platform, Avalara can help all Shopify customers with their global tax compliance requirements for sales tax, value-added tax (VAT), exemption certificate management, 1099 and W-9, property tax, and more.

Millions of entrepreneurs choose Shopify to build their business, and we expect millions more to follow suit. As the ecommerce industry continues to grow and evolve, compliance rules and regulations will likely evolve too. We can expect these changes to impact a number of industries. 

• Retail: Product tax rate changes, retail delivery fees, sales tax holidays, and a new threshold for the 1099-K are all shaping retail sales tax. 
• Manufacturing: Drop shipping, microfactories, reshoring, and servitization are just some of the trends and issues affecting sales tax for manufacturers. 
• BevAlc: The growth of low-alcohol, no-alcohol, and ready-to-drink beverages is shaking tax policies in many states. 
• U.S. sales tax: Find out what’s new with tax laws, economic nexus, marketplace facilitator laws, and tax rates, plus discover how technology is helping businesses with sales tax compliance.
• Global tax: Ecommerce may transcend borders, but cross-border selling doesn’t translate to a free pass on tax compliance. Get the lowdown on bringing VAT into the digital age, e-invoicing, and other international tax changes.