TAX management: Drop and Avalara for maximum cross border efficiency

Let's take the United States or Canada with their federal systems: each state, and sometimes even county or city, can set its own tax rates, while the rules for their application can vary significantly from good to good and from period to period. 

It is evident that for companies operating in eCommerce, managing sales tax can become a labyrinth of complex regulations and calculations.

Typically, a company is required to collect sales tax only in states where it has a physical presence or an economic nexus. This means that if your company has an office, a warehouse, or even just a representative in a state, it is obligated to collect and remit sales tax for sales made to customers in that particular state, or simply exceeds a sales threshold, thereby establishing an economic nexus.

In the past, we have had to manually deal with complicated calculations regarding sales tax, VAT, and GST (Goods and Services Tax), putting us under pressure not only from an operational standpoint but also risking incorrect application of the rules, given the relevant tax regulations in a given period and place. This meant dedicating a lot of time and resources to this task, with the risk of making costly errors.

Just imagine the risks related to uncertainty about your tax compliance with the revenue office of a remote country.

We found the ideal solution to all of this... 
To ensure maximum efficiency in managing our tax operations, it was essential to find a provider capable of seamlessly integrating with our internal software and all major eCommerce platforms on the market.
In this context, Avalara proved to be the most suitable and advantageous choice for our needs.

To give you a better understanding: each year, we manage tax calculations on a vast number of transactions through Avalara AvaTax and file 157 tax returns via Avalara Returns. One of the main advantages of Avalara Returns is the ability to make a single payment for each tax return period, covering the federal states of the USA and Canada.

Avalara is a global provider of cloud solutions for tax compliance automation, including sales tax, VAT, GST, and other related taxes. Its advanced software solutions enable companies to automate complex tax processes, improving efficiency and accuracy in tax management.

If you want to discover how Avalara can simplify tax management for your eCommerce, we are here to guide you towards the best solution.

CONTACT US

— 23 May 2024