Sean Dever

Avalara: E-commerce Tax Obligations

Avalara: E-commerce Tax Obligations

When selling products or services online, there are some challenges you will face that you typically will not deal with in a traditional storefront. One of these challenges is E-commerce tax when selling to customers outside of your state.Who Is Avalara And What Do They Do?In this episode we are joined by Laura Moses representing Forbin’s E-commerce partner, Avalara. Avalara provides technology to businesses of all sizes that allows them to automate their sales tax collection and remittance obligations.In the past, states could only tax businesses with a physical presence in their state. Today, economic activity in a state (economic nexus) can trigger a sales tax collection obligation. In June of 2018, South Dakota v. Wayfair ruled against Wayfair and said that they are obligated to register, collect and remit to South Dakota going forward. And since then all but 2 states have established a revenue threshold in which businesses are obligated to pay taxes based on that state’s threshold.Some businesses may want to keep up with the E-commerce obligation manually. For a business to keep up with their own E-commerce sales tax responsibility, the business would have to find the sales tax rate for every ship-to address of every order, and those rates would need to be verified every month because they do change monthly. They would also need to file the sales and use tax return with every jurisdiction that they file in and manually keep track of their sales volumes and invoices in every state, to determine if they are meeting the economic thresholds as their business is growing.Avalara Partnership with Forbin E-Commerce Sites.Forbin E-commerce sites have a pre-built integration with Avalara. This integration automatically updates monthly rates, rules and boundaries based on Avalara’s updates of over 10,000 jurisdictions and this takes all of the manual work out of your tax remittance.Avalara WebinarAvalara will be hosting a webinar  on October 15th at 2 pm EST. to further explain E-commerce tax and answer questions from attendees. Click the link below to sign up for this educational webinar. you are interested in Forbin's web solutions or products, visit our website at

Duration: 13 min

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