Cloud-based sales tax and compliance automation technology provider Avalara announced it has acquired the entire line of Zytax energy-related tax automation solutions for U.S. and international jurisdictions.
Acquired from FuelQuest, a provider of on-demand software and services for global downstream energy companies, Zytax’s products provide retail fuel and energy companies with a single source for all transactional tax processing needs.
Zytax offers three cloud-based solutions to address fuel excise tax complexity, including its flagship Zytax Compliance product, which enables on-time, signature-ready motor fuels excise tax filing and audit defense through automation of the end-to-end filing process.
Zytax Determination identifies and calculates energy taxes, providing financial control and transparency across a wide range of product types including petroleum, natural gas, and biodiesel. Zytax Government increases fuel revenue collections by easing returns filing submission, processing, and auditing for government agencies.
“This acquisition continues Avalara’s longstanding strategy of extending our reach into new industries, providing more businesses with a single place to turn for all of their transactional tax requirements,” stated Avalara founder and CEO Scott McFarlane. “A primary objective for our company in an acquisition is that we gain either industry-leading tax content, automation technology, or expert personnel; and, in this case, we have achieved all three.”
The acquisition is intended to broaden and deepen Avalara’s tax content domestically and internationally.
“Well-researched and maintained content is the lynchpin for any accurate tax decision,” stated McFarlane. “People tend to focus on rates, but it takes extensive tax knowledge to identify and interpret the rules that underlie energy excise taxes as well as to stay current with the frequent changes that occur. This addition extends our reach by helping make compliance more accurate for tens of billions of dollars of energy-related excise taxes per year.”
"As a leading provider of cloud-based sales tax automation services, Avalara is the ideal complement for Zytax and its customers,” stated Matt Tormollen, former FuelQuest CEO and now executive vice president and general manager of Avalara’s newly formed excise tax division. “The energy industry has long demanded a single solution to drive accuracy across all tax areas. Avalara is now the company that can meet that demand."