INDUSTRY SOLUTIONS: TOBACCO AND VAPE

Solutions to help you solve the complexity of tobacco and vape tax compliance

Avalara can help you save time and money while navigating excise tax, sales tax, business licensing, and PACT Act requirements.

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Avalara helps solve the common tax compliance challenges tobacco and vape businesses face

Challenge:
Taxes on tobacco, vape, and other tobacco products (OTP), are some of the most complex in the country. Requirements change often and new legislation, like the PACT Act, can make compliance particularly challenging.

Solution:
Avalara offers a tobacco and vape tax compliance solution supported by tax professionals with years of experience in their field. 

Ongoing research and automatic updates help you stay compliant with:

  • Volumetric and value-based requirements
  • Changes in tax policy
  • Tax rules from local, city, county, state, and federal authorities

Challenge:
Managing taxes across various tax types and platforms is difficult. Ensuring rates are consistent and applied correctly is tedious and prone to error.

Solution:
Avalara products work together to automate tasks in each compliance stage for a variety of tax types, including:

  • Excise
  • Sales and use
  • CST/QST
  • VAT/GST

Avalara solutions also integrate with other business systems to give you a single source of tax data, with regularly updated rates.

Challenge:
Expanding product lines or selling to new markets can be lucrative, but also increases exposure to risk.

Solution:
As your business grows, your Avalara solution can grow with you. We’ll help you monitor where you’re approaching nexus, so you’ll know when you need to register in new states.

You can add services to help automate different compliance stages as needed, including:

  • Registration
  • Licensing
  • Calculation
  • Returns
  • Document management

And because Avalara products are modular, you can build the solution you need now, based on the products you currently sell and add to it as you expand and grow.

Challenge:
Dedicating resources to compliance pulls your finance team away from revenue-generating tasks and stalls growth.

Solution:
Avalara can help you allocate resources more efficiently. Let us handle researching rate and regulatory changes, freeing up your finance team to more profitable tasks.

You can also save time for both finance and IT resources by automating the process for:

  • Updating rates
  • Generating reports
  • Preparing returns
  • Tracking nexus
  • And more

Our tobacco and vape solutions are an answer to your indirect tax challenges

Our tobacco and vape solutions are an answer to your indirect tax challenges

Step 1

Connect your business ecosystem

Manage transaction data from one place. Connect to the platforms you have now, as well as the ones you need as your business grows. Avalara has over 1,000 signed partner integrations for a variety of systems, including:

  • Ecommerce platforms
  • Point-of-sale systems
  • Order management systems
  • Marketplaces
  • Customer relationship management
  • Enterprise resource planning
  • Accounting software

Step 2

Automate day-to-day compliance

Calculate rates based on complex tobacco taxability rules and exemptions

Apply complex regulation changes across states and jurisdictions

Monitor sales and get alerts when you need to register and start collecting tax in new states

File according to PACT Act requirements in all states, as needed 

Step 3

Offload the burden of returns preparation and filing

Extract sales data from multiple sales channels (e.g., in-store, online, dealers) to generate reports and prepare sales tax returns

Compile transaction data across many systems and channels for a more complete picture of your tax liability

Create signature-ready returns and outsource filing according to individual jurisdiction deadlines

Avalara Returns Automation Illustration.

Step 4

Access documents across devices and locations

Whether employees are in the office or working remotely, they have access to tax documents and can: 

  • Produce detailed tobacco, vape, and sales tax reports for all channels

  • Look up exemption certificates 

  • Pull reports for auditors or customers

It’s official:
Avalara is a Leader in tax automation software

IDC MarketScape named Avalara a Leader in Worldwide SaaS and Cloud-Enabled Sales and Use Tax Automation Software for Small and Midsize Business

If you’re considering tax automation, check out the independent IDC MarketScape evaluation.

Tobacco and vape tax compliance products

Connect with Avalara

See how our solution can help you manage tobacco and vape tax compliance.

Connect with Avalara

See how our solution can help you manage tobacco and vape tax compliance.