Avalara Tax Compliance

Avalara Tax Compliance is paid sales tax software that provides automated tax determination in a cloud-based tax engine. You can integrate Avalara Tax Compliance with your Shopify store by adding it as a tax app.

Avalara provides the following benefits:

• All the features that were included in the Shopify Plus Avalara AvaTax app, including:
  • accurate and up-to-date tax codes from more than 12,000 jurisdictions
  • tax rules to meet your business needs
  • tax rules per product
  • accurate reports of taxes for your business
• Additional features and improvements, including:
  • syncing product and item catalog information between Shopify and Avalara to allow tax code mapping
  • enhanced ease of use for getting started and for ongoing tax profile management
  • increased accuracy of tax determination based on product taxability, including exempt products, partially exempt products, and tax holidays
  • removes the need to manually upload products to map to tax codes
  • end-to-end tracking across transaction lifecycle - track and edit transactions from cart to fulfillment
  • removes the need to make manual adjustments for reporting
  • accounts for order modifications

Avalara is a paid tax solution that requires a direct contract between you and Avalara. There is no additional cost from Shopify for integrating Avalara with your Shopify store. For more information on pricing, functionality, and how to set up an account, contact Avalara.

If you've already downloaded the Avalara app and need additional guidance on setup or configuration, then refer to the Avalara Tax Compliance help center page or contact Avalara support.

Use Avalara with multiple business entities

If your organization is on the Shopify Plus plan and has multiple business entities set up with Shopify Payments, then you can use a single Avalara connection across all your entities.

When Shopify sends a tax calculation request to Avalara, it includes the relevant business entity. Avalara routes the request to the correct tax configuration for that entity, so you don't need separate Avalara accounts for each market.

Review the following requirements for using Avalara with multiple business entities:

• Your organization must be on the Shopify Plus plan or Shopify Enterprise Commerce plan.
• Your organization must use Shopify Payments.
• You must have at least two business entities set up, each assigned to their respective market.
• All shops in your organization must be migrated to new Markets.

Steps:

1. Set up multiple business entities in your Shopify store.
2. Assign each entity to its respective market.
3. Contact Avalara to configure entity routing on their side.

For help with completing the setup in Avalara, contact Avalara support.