Avalara
Avalara provides cloud-based, AI-driven tax compliance software that calculates, files, and remits sales tax, VAT, and cross-border duties for SMBs, mid-market, and enterprise customers across 190+ countries via 1,400+ partner integrations.
- Company typePrivate
- Founded2004
- HeadquartersSeattle, United States
- Headcount5,001–10,000
- GTM typeB2B
- OfferingSoftware
What Avalara does
Avalara is a Seattle-headquartered, Vista Equity Partners-owned cloud software company that provides automated tax compliance and determination services to more than 43,000 entities across 75+ countries (with broader customer counts cited up to 200,000+). Its platform calculates, files, and remits sales and use tax, VAT, GST, communications, lodging, property, and cross-border duties for small businesses, mid-market finance teams, and enterprise tax departments. Underlying technology is anchored in the ALFA AI foundry, an agentic architecture built on 40+ leading models and trained on 54 billion+ annual transactions, 60,000+ regulatory sources, and 3 billion+ product classifications, with the Avi AI compliance agent and Returns Agent executing end-to-end compliance tasks across 190+ countries and 12,000+ U.S. jurisdictions at 99.999% accuracy and 99.99% uptime.
The business operates a platform-plus-modules model: AvaTax (the flagship real-time calculation service), Avalara Returns (automated filing and remittance that handled 6.6 million+ returns in 2025), Avalara Compliance Documents (exemption certificate management, 1099/W-9, and e-invoicing), and the Avalara API/MCP server layer that distributes through 1,400+ signed partner integrations spanning SAP, Oracle, NetSuite, Microsoft Dynamics, Salesforce, Shopify, BigCommerce, Adobe Commerce, Stripe, Clover, QuickBooks, and Sage. Revenue is generated primarily through subscription and usage-based SaaS pricing across SMB, mid-market, and enterprise tiers, augmented by Avalara Capital fee income from embedded working capital financing. Go-to-market combines self-serve onboarding for small businesses, inside sales for mid-market, enterprise field sales for global accounts, certified implementer and accountant channel partners, OEM/embedded integrations, and cloud marketplace listings (including Microsoft Marketplace with MACC eligibility). Recent strategic moves include a $500 million BlackRock-led secondary investment (November 2025), the Versori acquisition (March 2026) for AI-native integration, leadership transition to Hugo Sarrazin as CEO (May 2026), and a 1,000+ hire India expansion.
Avalara firmographics
Firmographics- Name
- Avalara
- Legal name
- Avalara, Inc.
- Website
- https://avalara.com
- Company type
- Private
- Founded year
- 2004
- Operating status
- Operating
- Headcount range
- 5,001–10,000 employees
- Short description
- Avalara provides cloud-based, AI-driven tax compliance software that calculates, files, and remits sales tax, VAT, and cross-border duties for SMBs, mid-market, and enterprise customers across 190+ countries via 1,400+ partner integrations.
- Ownership category
- akta.pro rank
Avalara industry classification
Industry- Product category
- Tax Compliance Software
- NAICS
- Software Publishers (5132), Computer Systems Design and Related Services (5415), Software Publishers (513210)
- SIC
- Services-Computer Programming, Data Processing, Etc. (7370), Services-Prepackaged Software (7372), Services-Computer Integrated Systems Design (7373)
- akta.pro primary industry
- Embedded Tax, Accounting & Invoicing Finance (FSAGALAJ)
- akta.pro secondary industries
- iPaaS & Workflow Automation (BPAMAOAB), OCR, ICR & Intelligent Document Processing (IDP) (BPAAAKAB), iPaaS (Cloud Integration Platforms) (HDAEAIAB)
Keywords
Where Avalara is headquartered
LocationHeadquarters
- HQ city
- Seattle
- HQ country
- United States
- HQ region
- North America
Offices6 records
Markets served
Avalara business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Infrastructure, Operations
Revenue model
- SaaS Subscription - Tax Calculation: Core AvaTax calculation service delivered as cloud-based subscription. Pricing based on transaction volume or tiered plans. Supports real-time tax determination across jurisdictions with rooftop-level accuracy.
- Returns Filing and Management: Managed returns preparation, filing, and remittance services. Automates filing millions of tax returns accurately and on time across U.S. jurisdictions. Additional revenue from filing services.
- VAT and International Tax Compliance: VAT return preparation, filing, and compliance for international operations. Includes e-invoicing and real-time invoice reporting for countries with live reporting mandates.
- Property Tax Management: Real and personal property tax compliance solutions acquired through CrowdReason. Manages property tax obligations across locations and jurisdictions.
- 1099 and W-9 Filing Services: IRS form collection, validation, filing, and recipient delivery for 1099s, W-2s, and W-9s. Acquired through Track1099 LLC. Supports federal and state electronic filing requirements.
- E-Invoicing and Live Reporting: Global e-invoicing compliance with AI agents that create, validate, and map invoice data to country-specific mandates. Supports Peppol, India GSP, and national tax authority platforms.
- Avalara Capital (Working Capital): Embedded working capital solution for tax obligations and growth initiatives, offering rapid approval without hard credit checks. Generates fee income from financing services.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Monthly | Small business tax compliance starting point |
| Subscription | Annual | Mid-market compliance automation |
| Subscription | Annual | Enterprise global tax management |
| Usage-based | Pay-as-you-go | Usage-based transaction pricing |
Go-to-market motion6 records
Distribution channels8 records
Marketing channels9 records
Avalara product offering
Product offeringCore offering
Avalara provides a cloud-based tax compliance automation platform that calculates, files, and remits sales, use, VAT, communications, lodging, property, and cross-border taxes for businesses. The core product, Avalara AvaTax, delivers real-time tax determination across 12,000+ U.S. jurisdictions and 190+ countries, while complementary modules handle returns preparation, exemption certificate management, e-invoicing and live reporting, 1099/W-9 filing, item and tariff code classification, property tax, and embedded POS automation (DAVO by Avalara). The platform is sold as a SaaS subscription with 1,400+ pre-built integrations into ERPs, ecommerce, POS, and billing systems, and is increasingly powered by agentic AI through the ALFA foundry and the Avi compliance agent.
Product overview
Avalara is an AI-driven tax and compliance platform operating as a platform-plus-modules architecture. The core platform is Avalara AvaTax (cloud-based tax calculation service) augmented by Avalara Returns (automated filing and remittance), Avalara Compliance Documents (exemption certificate management, 1099/W-9 filing, and e-invoicing), and the Avalara API (REST-based developer interface with MCP servers). Additional modules include Avalara E-Invoicing and Live Reporting, Avalara VAT Solutions, Avalara AvaTax for Accounts Payable, Avalara Tax Research (generative AI), Item Classification, Avalara Cross-Border (tariff code classification), Avalara Property Tax, Avalara Capital (working capital), Avalara Business Licenses, Avalara Lodging Tax, and Avalara 1099 & W-9. The platform is powered by Avi AI Agent and ALFA (AI foundry on 40+ models) for agentic tax and compliance. A sub-brand, DAVO by Avalara, delivers embedded POS tax automation. The platform processes over 54 billion transactions annually across 190+ countries and 12,000+ U.S. jurisdictions.
Differentiator
Problem solved
Functional benefit
Brands
- Track1099: IRS form filing service for 1099s, W-2s, and W-9s
- Versori, by Avalara
- AvaTax
- ALFA
- Avi
- Avalara Returns Agent
- Avalara Capital
- DAVO by Avalara
- Avalara Property Tax
- MyLodgeTax
Products and services
- Avalara AvaTax Flagship cloud-based tax calculation service providing real-time sales tax, VAT, consumer use tax, and cross-border duty determination across 12,000+ U.S. jurisdictions and 190+ countries with rooftop-level accuracy and an AI-powered rate database.
- Avalara Returns Automated preparation, filing, and remittance of sales and use tax returns across every U.S. jurisdiction, with AI automation handling millions of returns each year (6.6M+ in 2025).
- Avalara E-Invoicing and Live Reporting Global e-invoicing and live reporting solution that creates, validates, and maps invoice data to country-specific mandates, with real-time invoice reporting to tax authorities and connections to international exchange networks such as Peppol.
- Avalara VAT Solutions VAT determination, e-invoicing, and reporting across borders using AI-backed country-specific rules, rates, and digital services logic, with VAT Returns & Reporting for country-specific filings.
- Avalara Exemption Certificate Management Document management solution for tax-exempt sales that uses AI to digitize, validate, and store exemption certificates, eliminating manual tracking that puts B2B companies at audit risk.
- Avalara Tax Research Generative tax research product providing instant, expert-backed answers to tax rules, rates, and regulatory questions powered by AI and proprietary Avalara content.
- Item Classification AI-powered taxability categorization that assigns the right tax codes, HS codes, and product classifications using AI trained on a catalog of over 3 billion items across more than 8,000 brands.
- Avalara Cross-Border Cross-border compliance solution covering classification, VAT, GST, customs management, and tariff code classification powered by AI for HS code assignment, streamlining international trade at scale.
- Avalara Property Tax Real and personal property tax compliance solution managing property tax obligations with greater accuracy across locations and jurisdictions, expanded through the CrowdReason acquisition.
- Avalara Capital Embedded working capital and cash flow solution integrated into the Avalara platform that provides flexible financing for tax obligations and growth initiatives, with rapid approval and no hard credit checks.
- Avalara Business Licenses Business license registration, renewal, and management solution across jurisdictions, enabling businesses to register and manage licenses without manual burden.
- Avalara Lodging Tax (MyLodgeTax) Lodging and occupancy tax calculation and compliance solution for hotels, resort properties, chains, and short-term rental properties, including local rules, thresholds, and mandates.
- Avalara 1099 & W-9 IRS form management solution automating 1099 and W-9 form collection, validation, e-filing with the IRS, states, and recipients, enhanced through the Track1099 acquisition.
- Avalara API REST-based developer API with MCP servers for AI agent integrations, enabling embedding of real-time tax calculation, exemption certificate management, returns filing, and cross-border compliance into platforms and workflows.
- Avi AI Compliance Agent Agentic AI compliance agent launched November 2025 as part of a network of secure compliance agents designed to automate tax and compliance processes with human oversight, executing core compliance functions including tax determination, filing, exemption validation, and reporting across 195 countries.
- DAVO by Avalara Embedded sales tax automation solution for Clover POS (Fiserv) that automatically sets aside sales tax daily, tracks obligations in real time, files returns, and remits taxes on merchants' behalf.
Quantifiable outcome
- 510 hours saved annually on tax return management
- +3 more outcomes
Companies that use Avalara
Customer profileNamed customers4 records
Segments7 records
Ideal customer profiles6 records
Avalara technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration22 records
AI capability10 records
Feature10 records
Avalara partnerships and signals
Strategic signalPartnerships
13 partnerships are on record, tiered core.
- Fiserv (Clover)coreAvalara integrated automated sales tax compliance into Clover POS system powered by DAVO by Avalara. Merchants can automatically set aside sales tax daily, track obligations in real time, and have returns filed and taxes remitted on their behalf. Launch scheduled for later in 2026.
- MicrosoftcoreAvalara AvaTax is now available in Microsoft Marketplace enabling Microsoft customers worldwide to discover and deploy the solution with streamlined integration across Azure, Dynamics 365, and other Microsoft products. Offers simplified procurement and consolidated billing.
- NetSuitecoreAvalara named 2025 SuiteCloud AI Impact Partner of the Year at SuiteWorld conference recognizing AI-driven tax and compliance solutions integration within NetSuite ecosystem including agentic AI compliance agent Avi.
- ShopifycoreTechnology partner integration with Shopify ecommerce platform. Avalara named Shopify Technology Partner of the Year in 2025 Partner Awards.
- SAPcoreIntegration partnership with SAP for global tax compliance. SAP mentioned for Partner Marketing Excellence in EMEA Archer Awards.
- SalesforcecoreIntegration partnership with Salesforce for tax compliance within CRM and revenue cloud operations.
- OraclecoreExpanded embedded partnership with Oracle to support global tax compliance across Oracle platforms.
- SagecoreIntegration partnership with Sage ERP platform for tax automation.
- QuickBookscoreIntegration partnership with QuickBooks for small business tax compliance.
- StripecoreIntegration partnership with Stripe billing platform for real-time tax calculation on transactions.
- BigCommercecoreIntegration partnership with BigCommerce ecommerce platform for sales tax compliance.
- WooCommercecoreIntegration partnership with WooCommerce for WordPress-based ecommerce tax compliance.
- Adobe CommercecoreIntegration partnership with Adobe Commerce (Magento) for enterprise ecommerce tax compliance.
Scale indicators11 records
Recent moves7 records
Expansion highlights7 records
Avalara competitors and assessment
Company assessmentDirect peers
- Sovos: Sovos is a direct competitor to Avalara in global tax compliance, VAT determination, and e-invoicing. Both companies serve mid-market and enterprise customers with cloud-based indirect tax software and have invested heavily in e-invoicing mandate compliance across Europe and Latin America.
- Vertex (by Ryan): Vertex, now part of Ryan, is a direct competitor offering enterprise indirect tax determination and compliance software. Vertex has historically competed with Avalara in the U.S. enterprise segment, particularly with SAP and Oracle ERP customers, and offers similar product breadth including tax calculation, returns, and exemption certificate management.
Broad incumbents
- Thomson Reuters (ONESOURCE Indirect Tax): Thomson Reuters offers ONESOURCE Indirect Tax as part of its broader professional information services portfolio. The product competes with Avalara in enterprise tax determination and global trade management, leveraging Thomson Reuters' deep relationships with tax professionals and large corporate tax departments.
- Wolters Kluwer (Tax Software): Wolters Kluwer offers CCH SureTax and related tax compliance software as part of its broader professional tax and accounting information portfolio. The company competes with Avalara in enterprise indirect tax determination, particularly in regulated industries and large corporate tax departments.
- SAP: SAP is both a partner and potential threat to Avalara, embedding tax compliance functionality into S/4HANA and partnering with Vertex for native tax determination. SAP's ownership of the ERP stack creates risk that it could build or acquire competing tax capabilities that disintermediate Avalara's embedded distribution.
- Oracle: Oracle offers tax automation capabilities within Oracle Fusion ERP Cloud and through partnerships with tax content providers. As both an Avalara partner and a broad enterprise software incumbent, Oracle represents a competitive risk if it deepens native tax capabilities within its ERP ecosystem.
- Intuit: Intuit competes with Avalara in the small business and QuickBooks customer segment via sales tax automation features built into QuickBooks. Intuit's ownership of the SMB accounting software stack creates overlap with Avalara's small business offerings and embedded tax workflows.
Emerging players
- Stripe (Stripe Tax): Stripe Tax is an emerging player offering automated tax calculation for businesses using Stripe payments, competing most directly with Avalara in the SMB and digital-native segment. Stripe's embedded distribution via its payment platform gives it a structural advantage for online-first merchants.
- TaxJar (a Stripe company): TaxJar, now part of Stripe, offers sales tax calculation and filing for online sellers, particularly focused on ecommerce SMBs using platforms like Shopify and Amazon. TaxJar is an emerging competitor in the SMB and ecommerce segment where Avalara also competes through its embedded integrations.
Others
- ADP: ADP competes with Avalara in payroll tax filing and compliance through its RUN Powered by ADP and Workforce Now platforms. While focused on payroll-specific tax rather than sales/use tax, ADP's large employer customer base creates some overlap with Avalara's 1099/W-9 and compliance document offerings.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks7 records
Key highlights7 records
Customer concentration
Avalara social profiles
Digital presenceAvalara compliance and trust
Trust signalCompliance4 records
Avalara financial estimates
Financial estimateRevenue estimate
Valuation estimate
Avalara leadership team
Management profileNumber of profiles
Profiles11 records
Avalara subsidiaries and ownership
Company hierarchySubsidiaries8 records
Avalara funding detail
Funding detailFunding overview
Funding rounds13 records
Investors14 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Avalara M&A and investment
M&A and investmentM&A19 records
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Avalara
What does Avalara do?
Avalara provides a cloud-based tax compliance automation platform that calculates, files, and remits sales, use, VAT, communications, lodging, property, and cross-border taxes for businesses. The core product, Avalara AvaTax, delivers real-time tax determination across 12,000+ U.S. jurisdictions and 190+ countries, while complementary modules handle returns preparation, exemption certificate management, e-invoicing and live reporting, 1099/W-9 filing, item and tariff code classification, property tax, and embedded POS automation (DAVO by Avalara). The platform is sold as a SaaS subscription with 1,400+ pre-built integrations into ERPs, ecommerce, POS, and billing systems, and is increasingly powered by agentic AI through the ALFA foundry and the Avi compliance agent.
Is Avalara a public or private company?
Avalara is a private company. It is classified as private equity controlled and is currently operating.
When was Avalara founded?
Avalara was founded in 2004. It employs 5,001 to 10,000 people.
Where is Avalara based?
Avalara is headquartered in Seattle, United States, in the North America region.
How does Avalara make money?
Seven revenue lines are on record. SaaS Subscription - Tax Calculation is the primary driver. The others are returns Filing and Management, VAT and International Tax Compliance, property Tax Management, 1099 and W-9 Filing Services, E-Invoicing and Live Reporting and avalara Capital (Working Capital).
Who are Avalara's main competitors?
Direct peers on record are Sovos and Vertex (by Ryan). Broad incumbents are Thomson Reuters (ONESOURCE Indirect Tax), Wolters Kluwer (Tax Software), SAP, Oracle and Intuit. Emerging players are Stripe (Stripe Tax) and TaxJar (a Stripe company). ADP is listed as an others.
Does Avalara have an API?
Yes. Avalara offers a public API enabling developers to embed intelligent tax and compliance directly into platforms and workflows. The API supports real-time tax calculation, exemption certificate management, returns filing, and cross-border compliance. The platform includes REST-based endpoints, MCP servers for AI agent integrations, and over 1,400 signed partner integrations across ERPs, ecommerce, POS, billing tools, and marketplaces. Developer documentation, sandbox environments, and self-guided training are available. Developer documentation is at developer.avalara.com.
What industry is Avalara in?
Avalara's product category is Tax Compliance Software. Its primary akta.pro industry code is FSAGALAJ, Embedded Tax, Accounting & Invoicing Finance, with a secondary code of BPAMAOAB, iPaaS & Workflow Automation. Its NAICS code is 5132 and its SIC code is 7370.