Manage use tax and sales tax with one platform
Connect your accounts payable system with AvaTax for Accounts Payable to help automate consumer use tax compliance.
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How it works
Manage compliance within Avalara AvaTax
Save time and reduce tax errors on your sales and purchases using one centralized environment for both sales and use tax.
Catch vendor sales tax errors and avoid liability
Identify over- and underpaid tax on your purchases and apply the correct tax based on jurisdiction, taxability, and special rules.
Reconcile transactions and automate use tax compliance
Apply the tax owed on your returns automatically so you can avoid fines and fees for underpaying.
Consolidate compliance for procure-to-pay processes in one location
Centralize tax compliance in the Avalara Portal to manage sales, purchases, and returns.
Leverage Avalara Vendor Exemption Management to provide certificates directly to vendors
Calculate use tax on returns, with annotations on overpayments for credit tracking and refunds
Streamline reporting for reconciliation and audit support with your general ledger
Unify configurations to automate consumer use tax compliance
Allocate use tax automatically using customized and advanced transaction rules to simplify decision-making.
Manage cost centers and purchases to capture tax based on where and how your purchases are used
Configure vendor rules and capture persistent errors from vendors
Assign thresholds and variance rules to identify high- or low-risk purchases and manage multiple point-of-use tax allocations
Integrate with your business applications
Connect to the business systems you’re already using with our prebuilt integrations or API.
Capture purchase activity in real time
Resolve over- and underpayments quickly
Process real-time and batch transactions seamlessly
Frequently asked questions
Our solution provides centralized configurations within AvaTax, integrates with your existing systems, and uses real-time and batch transactions for use tax calculation and reporting.
Sales tax is assessed at the time of purchase and remitted to the government by the seller. Consumer use tax is self-assessed after the point of purchase, based on a variety of factors, and remitted to the government by the buyer.
Generally, consumer use tax obligations are incurred on purchases when the vendor undercharges or does not charge sales tax. Use tax can also affect previously purchased products, depending on how or where they’re used.
Self-assessment is a manual, resource-intensive process. Use tax rules and rates are also complex and subject to change.
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