Avalara
by Avalara · Tax Compliance
Cloud tax calculation, returns filing and e-invoicing across jurisdictions.
Updated August 2026 · By the ERP Research Editorial Team · Independent and vendor-neutral.
- Works with
NetSuite
SAP
Oracle
Microsoft Dynamics 365
Sage
AcumaticaOther- Deployment
- Cloud
- Company size
- SMB, Mid-market, Enterprise
- Pricing
- Quote-based
- Founded
- 2004
- Headquarters
- Seattle, United States
Overview
Avalara is a cloud-based tax compliance platform that automates the end-to-end indirect tax lifecycle, from sales and use tax calculation through returns filing, registration, exemption certificate management and e-invoicing. Its AvaTax engine determines tax in real time against a database covering more than 12,000 U.S. sales and use tax jurisdictions and tax content for 190+ countries.
The company built its business on a large library of pre-built connectors, with more than 1,400 signed partner integrations across accounting, ERP, e-commerce, billing and point-of-sale systems so tax determination can be embedded directly in existing transaction workflows. Beyond calculation, the platform handles returns preparation and remittance, business license and registration management, document and certificate storage, and cross-border customs and tariff classification.
Founded in 2004 and headquartered in Seattle, Avalara was publicly traded on the NYSE before being taken private by Vista Equity Partners in an $8.4 billion transaction completed in October 2022. It serves businesses ranging from small online sellers to large enterprises.
Screenshots & demo
Demo video from the vendor's YouTube channel.
Modules & capabilities
Avalara covers 27 of 40 capabilities we track in this category (+1 partial)
68%- Real-time transaction-level tax calculationAvaTax real-time rate/rule determination across 12,000+ US jurisdictionsCore strength
- Address validation & jurisdiction-accurate sourcingRooftop-accurate address validation and jurisdiction assignmentCore strength
- Product/service taxability classificationProduct taxability via tax codesSupported
- Purchase-side (AP/use tax) determinationConsumer/purchase-side use tax determinationSupported
- Configurable custom tax rules & logicSales tax holidays and special district rule handlingSupported
- Multi-currency tax calculationNot evidenced
“Not evidenced” means our research found no public documentation of this capability — the vendor may still offer it. Confirm on a demo.
Common use cases
- An e-commerce retailer automating sales tax across all states where it has nexus
- A multi-channel seller consolidating tax across Shopify, Amazon and its ERP
- A manufacturer managing consumer use tax on purchases and exemption certificates
- A SaaS company tracking economic nexus thresholds as it scales nationally
- A multinational handling VAT determination and returns across the EU
- An importer estimating landed costs and duties at checkout
- An enterprise meeting new e-invoicing mandates in multiple countries
- A finance team outsourcing returns preparation and remittance
Strengths & considerations
Strengths
- Very large connector ecosystem with 1,400+ signed pre-built integrations
- Broad product breadth spanning calculation, returns, registration, licensing, certificates and e-invoicing in one vendor
- Strong presence in the SMB and mid-market e-commerce segment
Considerations
- Pricing is transaction- and module-based and can scale unpredictably with volume
- Returns and some services are sold as separate modules on top of calculation
ERP integrations
Listed on SAP Store; Avalara also has separate listings for S/4HANA on-prem, Business One and Business ByDesign.
Oracle Cloud Marketplace listing covering Oracle Fusion tax and e-invoicing.
SuiteApp.com listing; a legacy (pre-SuiteTax) connector also exists.
Separate AppSource listings also exist for Dynamics 365 Finance, Commerce and Sales.
Listed on the Acumatica Marketplace.
Vendor-built connector; also listed on the legacy marketplace.intacct.com domain, which is not a recognized Sage marketplace domain for certification purposes.
Connector details independently verified against vendor marketplaces and documentation; last checked 2026-08-11.
Pricing
Pricing is typically based on transaction volume and the modules selected (calculation, returns, registration, e-invoicing); quotes are tailored by business size. Get an independent shortlist with pricing guidance below.
Technical & security
- Hosting
- SaaS (multi-tenant)
- Data residency
- US, EU
- Compliance
- SOC 1, SOC 2
- Mobile app
- No
- Languages
- English
About the vendor
- Founded
- 2004
- Headquarters
- Seattle, United States
- Employees
- ~4,000
- Ownership
- Private equity
Alternatives to Avalara in Tax Compliance
Avalara — frequently asked questions
Does Avalara file sales tax returns for me?
Yes. Avalara Returns prepares, files and remits returns across jurisdictions, with optional managed/outsourced service. It is sold as a module separate from the AvaTax calculation engine.
How many ERP and platform integrations does Avalara have?
Avalara reports more than 1,400 signed partner integrations, including pre-built connectors for NetSuite, SAP, Oracle, Dynamics 365, Sage, Acumatica and many e-commerce platforms.
Does Avalara handle international VAT and e-invoicing?
Yes. It provides VAT/GST determination for 190+ countries and an E-Invoicing and Live Reporting product for global electronic invoicing and continuous transaction control mandates.
Is Avalara still a public company?
No. Avalara was taken private by Vista Equity Partners in an $8.4 billion deal completed in October 2022 and no longer trades on the NYSE.
Evaluating Tax Compliance?
Tell us your ERP and requirements and we'll send an independent shortlist — including Avalara and the best-fit alternatives — with honest pros and cons.