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Automate Sales Tax Management with Avalara for Shopify

Posted on 1.24.2016

A new partnership between popular automated tax software provider Avalara and cloud-based, multichannel commerce platform Shopify Plus is helping merchants automate sales tax management.

The new service offering will be made available to Shopify Plus merchants and aims to streamline and automate calculations of hundreds of thousands of tax rates, rules and jurisdictions. The solution automatically calculates tax for every invoice line item in real time. What’s more, Shopify Plus merchants can add Avalara’s tax return preparation, filing and remittance services.

It is important to note that Avalara’s Compliance Cloud solution reduces the workload and complexity of calculating and filing taxes for millions of products and services across the U.S., Canada, Europe and dozens of additional international jurisdictions. This frees up time for Shopify Plus merchants to focus on their core businesses and provides peace of mind that their tax decisions are correct on every transaction.

“Ecommerce is real-time, so it just doesn’t make sense to manually manage sales and VAT taxes. Avalara’s Compliance Cloud platform provides a fast, easy, and cost-effective way for Shopify Plus merchants to manage tax compliance,” said Scott McFarlane, CEO at Avalara. “We’re excited to welcome Shopify into our community.”

For reference, Shopify Plus aims to make commerce simple for high growth, high volume merchants. The solution is leveraged by brands like Tesla, RedBull and RadioShack, and is built on the back of the Shopify platform, which powers more than 200,000 merchants in more than 150 countries. Plus, Shopify Plus enables large merchants to design, set up and manage their stores across multiple sales channels, including Web, mobile, social media, brick-and-mortar locations and pop-up shops. 

“We’re excited to be partnering with Avalara to provide Shopify Plus merchants with an automated way to calculate sales tax,” said Loren Padelford, general manager of Shopify Plus. “Since Shopify Plus merchants generate high volumes of sales, managing sales taxes can be complex and costly, and this new integration will save them time and money.”


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