Avalara

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.

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

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

• Tax compliance software
• Sales tax automation
• VAT compliance solutions
• E-invoicing software
• Cross-border tax management

Headquarters

HQ city

Seattle

HQ country

United States

HQ region

North America

Offices6 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Infrastructure, Operations

Revenue model

1. 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.
2. 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.
3. 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.
4. Property Tax Management: Real and personal property tax compliance solutions acquired through CrowdReason. Manages property tax obligations across locations and jurisdictions.
5. 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.
6. 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.
7. 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

Go-to-market motion6 records

Distribution channels8 records

Marketing channels9 records

Core 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

Named customers4 records

Segments7 records

Ideal customer profiles6 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration22 records

AI capability10 records

Feature10 records

Partnerships

13 partnerships are on record, tiered core.

• Fiserv (Clover)coreTechnology or Integration · 8 April 2026Avalara 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.
• MicrosoftcoreTechnology or Integration · 23 February 2026Avalara 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.
• NetSuitecoreTechnology or Integration · 9 October 2025Avalara 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 or IntegrationTechnology partner integration with Shopify ecommerce platform. Avalara named Shopify Technology Partner of the Year in 2025 Partner Awards.
• SAPcoreTechnology or IntegrationIntegration partnership with SAP for global tax compliance. SAP mentioned for Partner Marketing Excellence in EMEA Archer Awards.
• SalesforcecoreTechnology or IntegrationIntegration partnership with Salesforce for tax compliance within CRM and revenue cloud operations.
• OraclecoreTechnology or IntegrationExpanded embedded partnership with Oracle to support global tax compliance across Oracle platforms.
• SagecoreTechnology or IntegrationIntegration partnership with Sage ERP platform for tax automation.
• QuickBookscoreTechnology or IntegrationIntegration partnership with QuickBooks for small business tax compliance.
• StripecoreTechnology or IntegrationIntegration partnership with Stripe billing platform for real-time tax calculation on transactions.
• BigCommercecoreTechnology or IntegrationIntegration partnership with BigCommerce ecommerce platform for sales tax compliance.
• WooCommercecoreTechnology or IntegrationIntegration partnership with WooCommerce for WordPress-based ecommerce tax compliance.
• Adobe CommercecoreTechnology or IntegrationIntegration partnership with Adobe Commerce (Magento) for enterprise ecommerce tax compliance.

Scale indicators11 records

Recent moves7 records

Expansion highlights7 records

Direct 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

• LinkedInlinkedin.com/company/avalara
• Xx.com/avalara
• Facebookfacebook.com/avalara

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries8 records

Funding overview

Funding rounds13 records

Investors14 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A19 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Avalara