Product taxability codes

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. Assigning items to tax codes enables product- and item-level taxability across all channels and ordering technologies from the vendor.

Centralised tax policy administration

AvaTax provides centralised administration to implement tax policies across the business to more accurately calculate sales and use tax across all channels.

Geospatial technology

AvaTax uses proprietary geospatial technology to validate an address and match it to a nationwide database of tax regions.

Custom tax rules

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.

Advanced transaction rules

AvaTax allows businesses to create, modify, and apply business- and taxability-specific rules, which are executed before the tax calculation occurs.

Accounts payable assessment and accrual

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

Accounts payable single config for real-time and sourcing rules

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.

Sourcing rules

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.

Jurisdictional nexus

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.

Reporting

Avalara offers a comprehensive library of transaction tax reports that summarise and display transactional history to help you reconcile transactions in AvaTax with your accounting, ERP, ecommerce, m-commerce, or POS application, prepare tax returns and forms, and review your tax liabilities. With our comprehensive reporting you can review detailed jurisdictional reports all the way down to line-level details.

Out-of-the-box integrations

Avalara’s standard integrations to ERP, order management, CRM, procurement, and ecommerce technologies make AvaTax a single platform where consistent and more accurate sales and use tax rates and product taxability rules are applied across the entire quote/order creation/invoicing experience.

REST API

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.