Avalara

What is avalara

Avalara is a cloud-based tax compliance company that automates sales tax, VAT/GST, and other transactional tax processes for businesses that sell products and services across multiple tax jurisdictions. The platform centralizes tax calculation, filing, exemption certificate management, and tax rate maintenance so companies do not need to maintain separate tax logic inside each sales channel or ERP system. Avalara serves merchants, marketplaces, accounting teams, and enterprise ERP customers by connecting tax services to point-of-sale systems, e-commerce platforms, and financial systems.

Avalara's product portfolio is modular: there are dedicated services for real-time tax calculation, returns filing, exemption certificate management, and compliance document storage. Each product can be used on its own or combined into a broader compliance solution. The company also provides compliance content — a continuously updated database of taxability rules, rates, and jurisdiction boundaries — which is the foundation for accurate calculations and filings.

Large enterprises typically use Avalara to reduce manual tax work and compliance risk, while small and mid-market sellers use it to simplify capturing tax at checkout and filing returns. Avalara supports both domestic and international tax regimes including U.S. sales and use tax, Canadian GST/HST, EU VAT, and VAT/GST regimes in other countries.

Avalara features

What does avalara do?

Avalara performs automated tax determination at the point of transaction, manages exemption certificate workflows, prepares and files tax returns, and stores compliance documentation. The platform applies taxability rules to individual line items based on product classifications, shipping address, and jurisdiction rules, and returns precise tax amounts for each transaction.

Beyond calculation, Avalara automates returns filing for many jurisdictions, reducing the need for manual form preparation and submission. Its exemption certificate management system stores certificates, matches them to transactions, and provides audit-ready reporting. Avalara also offers tax research and compliance content that reflects regulatory changes and new rulings.

Avalara integrates with a wide set of sales and financial systems to provide both real-time and batch tax services. It offers developer-focused APIs for custom integrations, pre-built connectors for major e-commerce and ERP platforms, and managed filing services for customers who prefer a turnkey approach.

Avalara pricing

Avalara offers these pricing plans:

• Free Plan: Not typically offered; Avalara products are sold as paid subscriptions or transaction-based services
• Starter: Pricing typically begins with a monthly subscription plus per-transaction fees for small sellers
• Professional: Mid-market configuration with expanded transaction volume, additional products (returns and certificate management), and priority support
• Enterprise: Custom pricing for high-volume sellers and enterprises with advanced compliance needs

Avalara generally sells its products as a combination of fixed subscription fees and variable transaction or filing fees. Many Avalara customers pay a monthly base subscription for a product such as AvaTax combined with a per-transaction rate or a block-of-transactions package. Returns filing services and exemption certificate management are usually additional modules with their own pricing structures. Check Avalara's current pricing and product bundles for the latest rates and enterprise options.

Enterprise customers often negotiate volume discounts, tiered pricing, and bundled service agreements that include implementation and support. Because Avalara supports multiple product lines (tax calculation, returns, exemption certificates, communications tax, and international VAT services), final pricing depends on which modules are selected, the number of transactions, jurisdictions covered, and the degree of managed filing required.

How much is avalara per month

Avalara pricing commonly starts around $50–$200/month for small businesses when purchasing a basic tax calculation package plus modest transaction volume; actual monthly costs depend on product selection, transaction counts, and additional services like filings and certificate management. Smaller sellers that only need API-based tax lookup for occasional transactions may pay lower monthly minimums with per-transaction charges, while mid-market users typically incur higher recurring fees.

How much is avalara per year

Avalara often costs several hundred to several thousand dollars per year for small to mid-sized merchants, and many enterprise agreements run into the tens of thousands annually. Yearly cost depends on the number of transactions, number of jurisdictions, whether returns filing is included, and whether professional services or integrations are required. For accurate annual estimates tailored to a business's transaction profile, contact Avalara sales or review the detailed options at their product pricing pages.

How much is avalara in general

Avalara pricing ranges from modest monthly subscriptions with per-transaction charges to high-value enterprise contracts. Small sellers can often get started at a low recurring cost plus transaction fees; mid-market and enterprise customers see higher recurring charges that include filing, certificate management, and support. Because pricing depends heavily on volume, the number of returns, and geographic scope, Avalara emphasizes custom quotes for mid-to-large organizations.

What is avalara used for

Avalara is used for automated tax determination, compliance, and filing across sales channels. Merchants use Avalara to calculate sales tax or VAT in real time at checkout, ensuring correct tax amounts are charged based on product taxability, customer location, and nexus. This reduces the risk of under- or over-collecting tax and the administrative burden of maintaining tax rate tables.

Accounting and finance teams use Avalara to prepare and file tax returns in multiple jurisdictions. Avalara's filing services can generate jurisdiction-specific returns and submit them electronically where supported, which reduces the time and manual effort required by in-house tax departments or external accountants.

Avalara is also used for exemption certificate lifecycle management: collecting, storing, and matching certificates to transactions to substantiate tax-exempt sales. Marketplaces, platforms, and multi-channel sellers use Avalara to centralize tax logic across storefronts, POS systems, and ERP integrations so tax decisions are consistent and auditable across the organization.

Pros and cons of avalara

Avalara provides comprehensive tax coverage and automation which reduces manual compliance work, but it also introduces recurring costs and integration work. Pros include broad jurisdiction coverage, regular updates to taxability rules and rates, and a mature developer API and pre-built connectors for many systems. The service removes the need for businesses to track hundreds of jurisdiction changes independently.

On the downside, Avalara's pricing model — often subscription plus per-transaction fees — can be more expensive for very high-volume sellers without negotiated discounts. Implementation complexity can be non-trivial for custom ERP workflows or for businesses with highly specialized product taxability. Some customers also prefer more control and transparency in tax logic than a cloud-managed solution provides.

Operational trade-offs include dependence on a third-party service for real-time tax calculations and the need to map product tax classifications accurately. For most organizations, the reduction in compliance risk and staff time outweighs these trade-offs, but companies with unique business models should evaluate integration effort and ongoing costs.

Avalara free trial

Avalara typically does not offer a universal, long-form free tier for all its products the way consumer SaaS vendors do; trial availability depends on the product and the sales channel. Some Avalara products offer evaluation periods or demo access for prospective customers to test APIs, sandbox environments, and sample tax calculations before committing. Developers can sign up for sandbox or developer accounts to test Avalara APIs and integration flows.

For merchants using popular e-commerce platforms, Avalara may provide trial integrations or limited-time promotions via marketplace partners (for example, app stores for platforms like Shopify or BigCommerce). Prospective customers should contact Avalara sales to request trial access or sandbox credentials. The Avalara developer site provides documentation and sandbox endpoints useful for initial integration and validation.

Because returns filing and certificate management involve sensitive records and legal filings, those modules typically require formal onboarding and are not offered as unlimited free trials. Instead, Avalara often provides guided onboarding and pilot programs for customers evaluating managed filing or certificate automation services.

Is avalara free

No — Avalara does not generally provide a permanent free plan for production use. Most Avalara products are paid services sold as subscriptions with per-transaction or per-return fees. Developers can use sandbox environments and limited trial/demo access for evaluation, but production usage is billed according to the selected products and transaction volumes.

Avalara API

Avalara offers a comprehensive set of RESTful APIs across its product portfolio, with the AvaTax API for tax calculation, Returns API for filing, and CertCapture API for exemption certificate management. The APIs support standard HTTP methods, JSON payloads, and modern authentication mechanisms like API keys and OAuth where applicable. The developer portal provides detailed API references, example requests, and SDKs to speed integration.

Developers can use Avalara SDKs in multiple languages (for example, Java, .NET, Python, Node.js, and PHP) and reference OpenAPI/Swagger definitions for code generation. Typical API capabilities include address validation, tax calculation for a full invoice or individual line items, taxability lookups by product classification, submitting returns, and searching or attaching exemption certificates to transactions. Avalara also supports webhooks and asynchronous reporting for batch processing scenarios.

For custom integrations, Avalara’s APIs allow mapping product tax codes, creating and updating company profiles that define nexus and filing obligations, and retrieving jurisdictional tax rates and rules. The APIs are designed to work in real time for checkout scenarios and batch mode for nightly reconciliation or reporting. See the Avalara developer documentation at the Avalara Developer Center for API references, SDK downloads, and sandbox signup instructions.

10 Avalara alternatives

• Vertex — Enterprise-focused tax engine and compliance platform with strong ERP integrations
• TaxJar — Sales tax automation popular with e-commerce sellers and marketplaces
• Sovos — Compliance and tax reporting platform with a focus on enterprise filing and reporting
• Thomson Reuters ONESOURCE — Global tax and regulatory compliance software for large enterprises
• Stripe Tax — Tax calculation and reporting aimed at online businesses using Stripe payment flows
• TaxCloud — U.S.-focused sales tax solution often used by mid-sized sellers and developers
• Avalara CertCapture (note: part of Avalara suite) — included here for clarity when customers evaluate certificate products
• Exatax — regional tax compliance tool (example of a regional specialist)
• Aria Systems — billing platform with tax integration capabilities for subscription businesses
• Sage Intacct Tax Integration — financial system integrations offering tax calculation features

Paid alternatives to avalara

• Vertex: Enterprise-grade tax determination, return filing, and tax content with deep ERP connections and strong analytics. Vertex targets large organizations that require custom integrations and global tax coverage. It typically sells through enterprise licensing.

• TaxJar: Cloud-first sales tax automation with straightforward pricing for e-commerce sellers, automatic filing, and robust marketplace integrations. TaxJar is commonly chosen by merchants seeking an affordable and easy-to-integrate alternative.

• Sovos: Focused on managed filing and regulatory compliance across VAT, sales, and tax reporting regimes for enterprises. Sovos is often selected by customers that need managed filing for many jurisdictions and industries with complex reporting rules.

• Thomson Reuters ONESOURCE: Comprehensive tax compliance and reporting for multinational firms, including indirect tax engines and managed services. ONESOURCE suits companies looking for an enterprise compliance suite integrated with global tax research.

• Stripe Tax: Built for businesses using Stripe for payments, Stripe Tax provides real-time tax calculation, simplified reporting, and automatic tax collection for digital goods and services. It’s an attractive option when payment and tax flows are tightly coupled.

Open source alternatives to avalara

• OpenFisca: A general-purpose open-source rules engine used for tax and benefit simulations. Organizations use it to build in-house tax logic and policy simulations, although it requires significant development to become a production-grade sales tax engine.

• Tax-Calculator: An open-source library designed primarily for tax policy simulations. It's suited for organizations that need a research-oriented tax model and plan to develop custom production tooling on top of it.

• Custom rule engines built on open-source frameworks: Many organizations opt to build in-house solutions using libraries and rule engines (for example, Drools or bespoke Python/Node.js tax rule libraries). These are not full turnkey packages but provide control for teams able to maintain tax content themselves.

Open-source options typically require significant maintenance to keep taxability rules and rates current, so they are most appropriate for organizations with dedicated tax and engineering resources.

Frequently asked questions about Avalara

What is Avalara used for?

Avalara is used for sales tax, VAT/GST, and transactional tax automation. Businesses use Avalara to calculate tax at the point of sale, manage exemption certificates, file returns, and centralize tax rules across sales channels. The platform is designed to reduce manual compliance tasks and minimize tax errors across jurisdictions.

Does Avalara integrate with ERP and e-commerce platforms?

Yes, Avalara offers integrations with popular ERPs and e-commerce platforms. Avalara provides pre-built connectors for systems like NetSuite, QuickBooks, Shopify, Magento, and Salesforce, and also supports custom integrations via APIs and SDKs. Integration options include real-time tax calculation and batch reconciliation.

How much does Avalara cost per user or per month?

Avalara pricing commonly starts around $50–$200/month for a basic tax calculation package plus per-transaction fees; exact monthly costs vary by product, transaction volume, and number of jurisdictions. Enterprises negotiate custom pricing that reflects their volumes, product mix, and managed services requirements.

Is there a free version of Avalara?

No, Avalara does not generally offer a permanent free production plan. Avalara provides sandbox and trial access for evaluation and testing, but production use of Avalara products is billed according to subscription and transaction-based pricing. Contact Avalara sales for trial and demo options.

Can Avalara file sales tax returns automatically?

Yes, Avalara can automate sales tax returns filing for many jurisdictions. Avalara's returns filing service prepares, files, and can remit taxes where supported, reducing manual filing work. Filing coverage varies by location and filing frequency, so confirm supported jurisdictions for your business.

Does Avalara support exemption certificate management?

Yes, Avalara includes exemption certificate management capabilities. The CertCapture product collects, stores, and matches exemption certificates to transactions, providing audit-ready documentation and automated certificate expiration and renewal workflows.

Can I use Avalara for international VAT and GST?

Yes, Avalara supports VAT/GST regimes in multiple countries. Avalara offers products and services tailored to EU VAT, Canadian GST/HST, Australian GST, and other international indirect taxes, along with services for VAT registration and filing in some jurisdictions.

What APIs does Avalara provide for developers?

Avalara provides RESTful APIs including AvaTax, Returns, and CertCapture. The APIs support tax calculations, filing submissions, certificate management, and reporting; Avalara also publishes SDKs and OpenAPI specifications to simplify integration and testing in sandbox environments.

How secure is Avalara with tax and customer data?

Avalara maintains industry-standard security controls and compliance practices. The company uses encryption in transit and at rest, offers role-based access controls, and publishes security and compliance documentation. For enterprise concerns, Avalara provides details on certifications and data handling in its security resources.

How long does it take to implement Avalara?

Implementation time varies from a few days to several months depending on scope. Small e-commerce integrations with a pre-built connector can be completed quickly, while enterprise ERP integrations, complex product taxability mapping, and managed filing onboarding often require multi-week projects and professional services.

avalara careers

Avalara maintains a global workforce spanning product engineering, tax research, compliance, sales, and customer success roles. Career opportunities typically include positions for software developers, tax professionals, implementation consultants, and support engineers. The company emphasizes domain expertise in tax and compliance alongside cloud engineering skills.

Job seekers interested in Avalara careers should review role descriptions carefully to match tax domain experience with technical skills. Avalara often lists openings for remote and on-site roles, and larger tax or compliance roles may require domain-specific qualifications and experience with multi-jurisdictional tax rules.

Avalara also invests in onboarding and training for new employees, especially for technical roles that interact with complex tax content and integrations. For current openings and benefits information, consult Avalara’s corporate careers pages and job listings.

avalara affiliate

Avalara runs partner and referral programs for accountants, resellers, platform partners, and integration partners. Affiliate and partner arrangements vary by region and often provide co-marketing resources, technical enablement, and referral commissions based on product sales. Technology partners can integrate Avalara solutions into their platforms and may be eligible for partner support and joint go-to-market activities.

To become an Avalara affiliate or integration partner, companies typically apply through the Avalara partner portal or contact partner development teams for program details and technical onboarding. Partner tiers and benefits differ by partner type and contribution level.

Where to find avalara reviews

Independent reviews of Avalara appear on software review platforms such as G2, Capterra, and TrustRadius where users rate product modules like AvaTax, CertCapture, and returns filing services. Customer reviews commonly discuss accuracy of tax calculations, integration effort, support responsiveness, and the cost model.

For technical validation, read developer feedback and case studies on Avalara’s site and third-party blogs that document implementation experiences with platforms like Shopify, NetSuite, and Magento. For up-to-date user feedback and ratings, consult review sites and industry forums focused on e-commerce, accounting, and ERP integrations.

Research notes:

• Verified Avalara is a tax compliance and automation provider offering AvaTax, CertCapture, Returns, and related products. Developer docs are hosted at developer.avalara.com.
• Pricing is modular (subscription + transaction fees) and often custom for enterprise customers; recommended linking to https://www.avalara.com/pricing for current rates.
• Common integrations include NetSuite, QuickBooks, Shopify, Magento, Salesforce; Avalara provides SDKs and REST APIs for custom integration.
• Alternatives researched include Vertex, TaxJar, Sovos, ONESOURCE, and Stripe Tax for comparative context.
• Open-source alternatives are limited; organizations often build in-house solutions with rule engines such as OpenFisca or Tax-Calculator when they require full control over rules and content.
• Security, sandbox environments, and partner programs are noted as typical Avalara offerings; readers should consult Avalara developer and security pages for details.