AvaTax from Avalara is a third party tax gateway service. We offer plugins for both Avalara Magento and AbleCommerce. For complex sales tax collection needs, AvaTax is the solution for you. Web 2 Market is an official Avalara partner.
What is AvaTax?
Avalara provides a set of tax solutions that includes sales tax calculations, returns filing, VAT services and global compliance. They also provide excise tax collection and filing, lodging tax calculation and more for other firms. However, for our clients (small and medium sized firms), AvaTax is the main product of concern. Avatax provides sales tax calculation for 40,000 taxing bodies in the US alone. It can also file the sales tax returns for the merchant.
Who Should Use AvaTax?
Many of our clients have offices in only one state. That often means they only have nexus in that one state. Nexus is typically defined as “sufficient physical presence” to be required to collect sales tax. However, nexus can also be created by having a sales rep, or other employee in another state. If in doubt, talk to you accountant, or Avalara.
If your tax needs are simple – only have nexus in one state, for example, we generally wouldn’t recommend Avalara. Our clients often collect tax at the state rate, and pay only one state tax. We’ve never heard of a small client having a problem doing that.
However, if you have nexus in more than one state, need to get tax rates down the street level, have a high volume of sales or would prefer someone else handle sales tax payments, Avalara might be the choice for you.
What’s the Next Step
For expert advice on the best solution, speak to one of our Magento Certified Solution Specialists or AbleCommerce Experts. We can also help you install the plugin or extension that you need to connect your store to AvaTax.