Groupon relies on Avalara to reduce tax complexity
Results
Increased compliance
Enabled growth
Flexible implementation
Improved processes
Summary
Results
- Increased compliance
- Enabled growth
- Flexible implementation
- Improved processes
Tax challenges
- Tax complexity
- Compliance risk
- Company growth
- Process inefficiency
Products used
Avalara AvaTax
Dynamically delivers sales and use tax calculations, based on the latest rules and rates in our tax engine, to a shopping cart or invoicing system at the time of purchase.
Avalara Returns
Automatically gathers data from Avalara AvaTax to prepare and file sales and use tax returns and remit payments across multiple jurisdictions every filing cycle.
Benefits
- Customized support addresses complex tax needs
- Confidence in compliance with ever-changing rules across thousands of jurisdictions
- Increased process efficiency that enables company growth
Industry type
Ecommerce
Tame the complexity of sales tax compliance in an online sales environment.
Company overview
Tax type
Sales and use
We live in a global economy, powered by numerous channels. Groupon provides convenience as the go-to destination for millions of consumers to connect with both local and global businesses for products, services, and experiences.
Tax challenges
Groupon is a global marketplace and must comply with many reporting obligations, including economic nexus and marketplace rules in the United States, and e-invoicing and tax transparency laws internationally.
“The indirect tax landscape, both in the U.S. and abroad, is rapidly transforming right now,” says Brad Caproni, director of global indirect tax for Groupon. “Tax authorities are doing everything they can to keep up with the digitization of the global economy and maintaining compliance with these new and changing laws is incredibly difficult.”
Why Avalara?
Groupon needed a reliable tax calculation engine to work with their existing systems; one that would not cost a fortune to implement.
“Avalara was easy to partner with,” says Brad. “We currently use AvaTax to handle all of our domestic sales tax calculations and we use Avalara Returns to manage our hundreds of monthly sales tax filings.”
Avalara partnered with Groupon to create a solution that allows Groupon merchants to have their own AvaTax accounts nested under Groupon’s account. In states that require marketplaces to collect tax on behalf of the merchants selling on their platforms, Groupon can collect tax without any action on the merchant’s part. In other states, Avalara allows Groupon merchants to decide whether Groupon will collect tax for them at checkout. If they choose not to have Groupon collect tax for them, Groupon can instead pass the tax through for the merchant to remit.
“The custom solution we developed with Avalara was an absolute game- changer,” says Brad. “It allows us to keep inventory on our platform without becoming noncompliant.”
Tax challenges
- Tax complexity
- Compliance risk
- Company growth
- Process inefficiency
Products used
Avalara AvaTax
Dynamically delivers sales and use tax calculations, based on the latest rules and rates in our tax engine, to a shopping cart or invoicing system at the time of purchase.
Avalara Returns
Automatically gathers data from Avalara AvaTax to prepare and file sales and use tax returns and remit payments across multiple jurisdictions every filing cycle.
Benefits
- Customized support addresses complex tax needs
- Confidence in compliance with ever-changing rules across thousands of jurisdictions
- Increased process efficiency that enables company growth
Industry type
Software
Manage the varied requirements of where and how SaaS, software, and subscriptions are taxed.
“The custom solution we developed with Avalara was an absolute game-changer. It allows us to keep inventory on our platform without becoming noncompliant.”
—Brad Caproni
Director, Global Indirect Tax
“The custom solution we developed with Avalara was an absolute game-changer. It allows us to keep inventory on our platform without becoming noncompliant.”
—Brad Caproni
Director, Global Indirect Tax
Results
“Having Avalara manage rate updates and taxability changes is a lifesaver,” Brad continues. “There is no way we could manage the ever-changing rate landscape without third-party assistance. Avalara takes the heavy burden of compliance — from prepping and filing returns to issuing payments and notice resolution — off the plates of our staff.”
Brad adds that working with Avalara has removed barriers to introducing new product types. “We don’t have to hold business up to research which jurisdictions tax the item,” he explains. “We let Avalara make those determinations for us. All we need to do is assign the appropriate tax code and ensure the necessary data elements can be sent through the API and we’re ready to go.”
"Avalara is an integral component of Groupon’s tax compliance strategy,” Brad concludes. “Their rates and taxability determinations are fast and highly accurate, and the people are friendly and knowledgeable.”
