Avalara plans to release a new product for small businesses to manage the sales tax return preparation process. Avalara Returns for Small Businesses arrives at the two-year mark of the Supreme Court Wayfair decision, which allows states to now collect sales tax from remote sellers.
To date, 43 states and the District of Columbia have adopted sales tax laws requiring businesses to use customer location as part of determining compliance requirements. These new laws, together with the unforeseen COVID-19 pandemic, have had a material impact on the time and resources required for small businesses to research, prepare, file, and remit sales tax. Each new state in which a business must now collect and remit sales tax can sometimes mean manually extracting sales tax calculation data from multiple sales channels, as well as navigating individual state Department of Revenue websites for filing and remittance.
The new product from Avalara is aimed at giving small business owners and finance professionals an easy-to-use solution that guides users through and addresses every step of the tax preparation and filing process.
For instance, the product allows users to import transaction information for each of their business systems, ecommerce platforms and marketplaces to compile sales and use tax return filing for every state return from a single dashboard. The solution also aims to reduce audit or record retention risk, as users have access to an archive of all previous and current returns generated by the service for an ongoing record of compliance.
“The unprecedented growth in ecommerce has significantly increased the level of tax compliance complexity for small businesses,” said Sanjay Parthasarathy, chief product officer at Avalara, in a statement. "Avalara’s new returns offering provides small businesses with an easy-to-use solution that reduces the amount of time spent on sales tax return preparation, and at a price point designed specifically for them.”
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