AI-first tax calculations, trusted and built to scale

Avalara AvaTax is the global tax engine at the heart of our AI-powered compliance platform — delivering highly accurate, real-time tax calculations for both sales and purchasing workflows across jurisdictions and tax types.

See Avalara AvaTax in action with an instant, self-guided demo — no sales pitch, no commitments.

Trusted by companies in every industry

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Let’s solve your tax compliance challenges together

Fill out this short form to connect with an Avalara tax solution specialist.

You can expect the following once you submit:

 

  • We’ll review your business needs.

  • One of our specialists will contact you to discuss tailored solutions.

  • You’ll get insights into how Avalara can help streamline your compliance.

 

Connect with us now — we’re excited to speak with you!

 

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Video: More accurately calculate taxes in over 190 countries and autonomous territories.

BENEFITS

A complete platform for an end-to-end tax compliance solution

Trusted by businesses and governments alike

Avalara processes upwards of 50 billion transactions annually and is trusted by more than 43,000 customers. Governments also rely on Avalara data to publish official tax rates and accept our filings at massive scale. 

Provides real-time tax accuracy across sales and purchasing

AvaTax applies tax calculations and determinations in real time at every point in both the sales and purchasing processes — whether you’re quoting a customer or processing a vendor invoice. It ensures each transaction is taxed more accurately based on jurisdiction, product type, exemption rules, and more.

Built for scale, precision, and growth

AvaTax leads the market in AI-driven tax calculation — automating product classification to reduce manual work, decrease guesswork, and improve consistent taxability. 

Regularly updated tax content to power global precision

At the core of AvaTax is one of the world’s most advanced tax content engines — AI-powered and dynamically maintained with real-time updates from over 60,000 global sources.

Integrates with the business applications you use

Engineered to fit into virtually any financial system landscape, AvaTax has over 1,400 signed partner integrations across ERP, ecommerce, procurement, and POS platforms. AvaTax also connects to the systems you already use and unifies them through a single AI-powered tax and compliance platform. 

Brings tailored tax calculation for complex industries

AvaTax handles complicated, sector-specific tax requirements with automation and precision, reducing manual effort in high-complexity industries. AvaTax supports communications, lodging and hospitality, energy and fuel, among others. 

Delivers enterprise-grade performance with always-on, multicloud resilience

AvaTax delivers the speed, scale, and uptime modern businesses demand. Avalara runs active-active across AWS, Azure, GCP, and OCI with low latency and high availability. It also  
delivers uninterrupted service even if a cloud provider region fails. 

Provides audit-ready visibility

AvaTax provides real-time reporting and multi-entity visibility out of the box — giving finance and tax teams instant access to transaction-level data, audit trails, and role-based dashboards.

How it works

AvaTax calculates tax rates based on item, location, legislation, and regulations

Video: Maintain compliance with automated calculations and expert support from AvaTax.

Tax types and industries:

  • Sales and use tax

  • Value-added tax (VAT)

  • Goods and services tax (GST)

  • Excise tax

  • Communications

  • Software

  • Lodging 

  • Beverage alcohol

  • Tobacco and vape

  • Manufacturing

Maintain full visibility and control

View up-to-date sales tax rates for every state

Our interactive map is optimized for mobile and further highlights our broad coverage across the tax compliance industry.

Idaho Look up rates

Streamline your sales and purchase cycle

AvaTax integrates with your business systems and simultaneously exchanges tax data across your sales and purchase orders to deliver more accurate rates to you and your customers at checkout.

Sales and use tax

See the benefits of tax calculation automation

Learn how Avalara AvaTax works to help you manage tax compliance from a centralized platform to save time and reduce compliance risk.

Automate tax calculation with Avalara Avatax

Integrations

AvaTax works with many of the business systems you already use 

Features

Discover AvaTax’s unique capabilities

Feature

What it does

What it does

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.

Centralized tax policy administration

AvaTax provides centralized 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 centralized 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 summarize 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 the 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.

CUSTOMER STORIES

See what our customers have to say

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“Working with both Avalara and Sage, Set Solutions has saved more than $300,000 annually and 30 hours per week on tax compliance tasks.” 

Missy Basone

CFO, Set Solutions

“Avalara is a game changer. With Avalara’s wide range of product offerings, they take the everyday pain points of doing business and make them simplified, streamlined, and most importantly, manageable.”

—Jacob Swager
Tax Director, Sweetwater

“Avalara has significantly reduced manual tasks, errors, and custom, complex regulations for us, minimizing the time our team spends maintaining data workflows.”

—Ricardo Rodriguez
Senior Manager of Indirect Tax, Snowflake

“Incorporating Avalara AvaTax with our ERP has proven to be a truly monumental achievement, as it empowers us to seamlessly and effortlessly obtain sales tax information, ensuring multi-jurisdictional compliance with remarkable efficiency.”

—Andre Johnson
Business Analyst, NEFCO 

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Awards

TrustRadius
TrustRadius
Leader Winter 2025

Frequently asked questions

What is Avalara AvaTax and how does it work? 

Avalara AvaTax is a cloud-based tax compliance solution that automates the calculation of sales and use tax, VAT, GST, excise tax, communications tax, lodging tax, and other indirect tax types. It works by integrating with your business systems (such as ERP, accounting, and ecommerce platforms) to calculate taxes in real time based on the most current tax rules and rates. This helps ensure accurate and compliant tax calculations for every transaction. 

Can Avalara AvaTax integrate with my existing accounting or ecommerce system? 

Yes. Avalara AvaTax has more than 1,400+ signed partner integrations and custom APIs for a wide range of accounting, ERP, and ecommerce systems. This integration allows for automatic tax calculations within your existing workflows, reducing manual data entry and enabling more accurate tax compliance.

How does Avalara AvaTax keep up with changes to tax rates and regulations? 

Avalara AvaTax is regularly updated with the latest tax rates and rules for thousands of tax jurisdictions. The cloud-based platform applies updates in real time, so you always have highly accurate tax information, helping you to stay compliant with changing tax laws without manual intervention.

What features does Avalara AvaTax offer for managing exemption certificates? 

Avalara AvaTax includes exemption certificate management features that collect, validate, and store exemption certificates digitally. The system automatically validates certificates during transactions, ensuring only valid exemptions are applied. It also provides a centralized repository for easy access and audit readiness, as well as automated reminders for certificate renewals.

Does Avalara AvaTax support international tax calculations? 

Yes. Avalara AvaTax supports international tax calculations, including VAT, GST, and other transaction taxes. AvaTax VAT determination capabilities accurately calculate VAT and GST based on regularly updated tax data for sales and purchases, for compliance with VAT and GST laws in over 190 countries. This makes it an ideal solution for businesses operating globally, as it helps them manage tax compliance across different jurisdictions with varying tax rules and regulations.

Can Avalara AvaTax integrate with Avalara Tariff Code Classification? 

Yes. Avalara AvaTax can integrate with Avalara Tariff Code Classification. The integration allows businesses to automatically classify products with the mandatory 6-digit Harmonized System (HS) codes or country-specific 10-digit tariff codes and Harmonized Tariff Schedule (HTS) codes that are essential for determining accurate duties and taxes for cross-border transactions. With this integration, AvaTax unifies customs duty, import tax, and sales and use tax calculations in a single platform, creating a transparent and frictionless online shopping experience for international customers.

How does Avalara AvaTax help businesses prepare for tax audits? 

Avalara AvaTax helps businesses prepare for tax audits by maintaining detailed records of all transactions and their corresponding tax calculations. The system generates comprehensive reports that can be used to demonstrate compliance during audits. Additionally, Avalara Exemption Certificate Management (ECM) helps ensure all certificates are valid and easily accessible, further supporting audit readiness.

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