What is Avalara? Avalara product introduction

Avalara is a cloud-based tax compliance software and solution provider. Founded in 1995, it is headquartered in Seattle, Washington, USA, with 1,592 full-time employees (12/31/2018). Avalara helps businesses of all sizes achieve transaction tax compliance, including value-added tax, sales and use tax, excise tax, communications and other taxes. The company's comprehensive, automated, cloud-based solutions are fast, accurate and easy to use. The company's Compliance Cloud™ platform helps customers manage complex and cumbersome tax compliance tasks imposed by state, local and other tax agencies around the world. Avalara provides more than 500 pre-built connectors for leading accounting, ERP, e-commerce and other business applications. Every year, Avalara processes billions of indirect tax transactions, submits hundreds of thousands of tax compliance documents and tax returns, and manages millions of tax exemption certificates and other compliance-related documents. Avalara is headquartered in Seattle, Washington, with offices in the United States, the United Kingdom, Brazil, Belgium and India.

Avalara Product Introduction

The company's current products mainly include: AvaTax for Tax Determination, Avalara Returns for Tax Return Preparation, Filing, and Remittance, Avalara Compliance Document Management, professional services, other solutions, etc. The company has 9,070 core corporate customers, ranging from small businesses to Fortune 100 companies, and the company's customers are mainly small and medium-sized enterprises with 20-500 employees.

AvaTax: An original product launched in 2004, one of the company's core products

AvaTax is Avalara's original product launched in 2004, and it continues to develop other industries and regions based on the original product and expand new content. AvaTax is sold on an annual subscription basis, paid one year in advance. In 2015, Avalara acquired applications related to the VAT sector, and its functions were expanded to international cross-border transactions. Avalara is expected to continue investing in related sectors and expand the functions of cross-border transactions in other countries. For example, the acquisition of Gyori in 2016 expanded Avalara's management capabilities in the Brazilian tax compliance cloud computing market. Avalara can manage VAT, fuel consumption tax, accommodation tax, communication tax and vertical-specific applications. With its wide range of transaction content, including a large statutory tax library, Avalara can attract vertical-specific customers through mergers and acquisitions or quickly supplement customized content.

Tax declaration: Integration with tax calculation function is one of the advantages that distinguish the company from its competitors

Mid-market customers, i.e. SMEs with 20-500 employees, prefer an end-to-end solution that does not require employees. Avalara Tax Return is typically sold as an annual subscription, paid one year in advance. The filing process is simplified through integration with AvaTax, where customers can file tax returns or Avalara can file on their behalf. Avalara files tax returns as well as remits collected taxes to the correct tax authorities. With the acquisition of TrustFile in 2007, Avalara gained a standalone, self-service web solution. Therefore, Avalara's platform is attractive to SME customers and it.

Avalara Compliance Document Management

Businesses of all sizes face countless requirements for the collection, storage, and management of numerous official forms, including Tax Executive Certificates, Forms W-8, Forms W-9, and licenses and registrations. The Company offers compliance document management solutions that can be integrated into AvaTax or used as standalone solutions. The Company's most important compliance document solution is CertCapture, which creates, validates, stores, and manages sales tax exemption and reseller certificates. The solution makes tax documents easily retrievable and helps the Company's customers validate them and keep them up to date. Sellers collect tax exemption certificates (both paper and electronic) to prove that purchasers are exempt from sales tax. The Company's solutions help the Company's customers limit audit risk by establishing an audit trail of tax-exempt transactions.

Other solutions

MatrixMaster is a large product liability database used by companies for retail operations. MatrixMaster enables businesses that identify products with a Universal Product Code (UPC) to calculate taxability at the point of sale.

Avalara Cloud Connect is a hardware appliance that the company provides to a small number of U.S. customers who have specifically requested an on-premises solution. Avalara Cloud Connect is linked to our core AvaTax solution and is kept up to date through that connection. It processes and stores transactions on-site for periodic uploads to AvaTax. This configuration enables Avalara Cloud Connect to process tax determinations at any time, even in the event of service downtime or a communications network slowdown or outage.

Avalara Licensing is a service launched in the fall of 2018 that allows U.S. customers to obtain business licenses and sales tax registrations using the company’s online platform.

VAT Expert is a web-based solution that checks the validity of customer and supplier VAT numbers and provides VAT determination in the form of invoices that comply with the relevant return forms for the European market.

Brazil Tax Compliance Solutions: The company's Brazil Tax Compliance Suite includes a variety of highly specialized solutions to meet Brazil's transactional tax regime. These solutions include electronic compliance report validation, electronic invoice certification and preparation, tax determination and return preparation.

In terms of product sales, the company currently sells solutions mainly on a subscription basis. Most potential customers are positioned through cost-effective digital marketing strategies and qualified using predictive analytics. Most of the company's sales to new and existing customers are direct and conducted over the phone. In some cases, especially for customers with larger and more complex needs, the company conducts face-to-face sales. Small business customers can order the company's solutions through an automated self-service ordering process.

The above is an analysis of what Avalara is and Avalara’s product introduction. If you want to know more about Avalara, please continue to follow us!