How much can you save with sales tax compliance automation?

Find out in real time how much you could save automating with Avalara.
STEP 1 OF 5

Registration obligations

Potential annual savings
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Registration savings
{registrationsavings}

Step 2: Tax rates and rules

  • Researching changes in state sales tax laws
  • Checking economic nexus thresholds (registration requirements triggered by sales volume into a state)
  • Mapping sales activity to state requirements

Step 2: Tax rates and rules

STEP 2 OF 5

Tax rates and rules

Potential annual savings
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Tax rates savings
{taxratessavings}

Step 1: Registration obligations

Step 3: Sales tax returns

  • Studying product taxability for multiple jurisdictions
  • Updating rate tables
  • Fixing tax-related errors

Per the Aberdeen Group report

  • Small and midsize companies (annual revenue of $50M–$1B) typically spend 29 hours per month
  • Large companies (annual revenue of $1B+) typically spend 143 hours per month

 

Step 1: Registration obligations

Step 3: Sales tax returns

STEP 3 OF 5

Sales tax returns

Potential annual savings
{totalsavings}
Returns savings
{taxreturnssavings}

Step 2: Tax rates and rules

Step 4: Exemption certificates

  • Researching tax forms and filing requirements
  • Reconciling sales data and reporting
  • Filling out state forms and remitting taxes
  • Amending tax returns and notice management

Per the Aberdeen Group report

 

  • Small and mid-size companies (annual revenue of $50M-$1B) typically spend 35 hours per month
  • Large companies (annual revenue of $1B+) typically spend 175 hours per month

 

Step 2: Tax rates and rules

Step 4: Exemption certificates

STEP 4 OF 5

Exemption certificates

Potential annual savings
{totalsavings}
Exemption savings
{exemptionssavings}

Step 3: Sales tax returns

Step 5: Potential tax liability

  • Collecting, reviewing, and validating new certificates
  • Renewing expired certificates and updating customer records 
  • Addressing errors, complaints, credits, and rebilling

Per the Aberdeen Group report

  • Small and midsize companies (annual revenue of $50M-$1B) typically spend 11 hours per month
  • Large companies (annual revenue of $1B+) typically spend 67 hours per month

Step 3: Sales tax returns

Step 5: Potential tax liability

STEP 5 OF 5

Potential tax liability

Potential annual savings
{totalsavings}
Tax liability
{revenuesavings}

Step 4: Exemption certificates

Does your business have sales in states where it isn’t registered for sales tax? Estimate the total annual sales revenue here.

We apply an average sales tax rate of 8% to your total annual sales in states where you are not registered for sales tax, and then add a 15% penalty on top. The total is your potential annual tax liability.

 

(Y x .08) + ((Y x .08)(0.15)) = Z

Step 4: Exemption certificates

Total potential annual savings: {totalsavings} Savings breakdown

How can I take advantage of these savings?

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Potential annual savings
{totalsavings}
Manual labor savings
{laborsavings}
Potential tax liability
{revenuesavings}

Step 5: Potential tax liability

Based on $55/hour per the Aberdeen Group report1

Calculated liability is based on an average sales tax rate of 8% plus a 15% penalty

How can I take advantage of these savings?

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Step 5: Potential tax liability

The information provided by this calculator is intended to be a rough approximation only. The estimate shown here may not reflect actual time and cost savings.

Discover what you need to know about tax compliance

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Understand the cost of tax compliance

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Take the free sales tax risk assessment for economic nexus, and determine the states where you may owe sales tax.
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