The company provides solutions automating what can be the cumbersome task of accurate compliance with sales tax rules for businesses. In doing so, the company hopes to save its clients time, money and protect them from “audit risk” arising out of imperfect compliance. All aspects of the end-to-end process are covered, including the remitting of state sales tax and the tracking/integration of exemption certificates, which pardon customers from sales tax under specific conditions.
According to the website, the said AvaTax solution delivers instantaneous tax decisions in over 10,000 jurisdictions in the U.S.
In adding Bitcoin, they are the first known solution of its kind to cater toward cryptocurrency. More and more businesses have been accepting Bitcoin as payment for services, both in e-commerce and in brick-and-mortar stores. Businesses whose operation entails a more complicated sales tax process may find relief with this solution. Perhaps those hesitant to accept Bitcoin until now due to tax implications may now be more willing.
Said Webb Stevens, Avalara’s Head of Product:
The Full Crypto Trading in FBS TraderGo to article >>
“Avalara has a history of researching and addressing sticky compliance issues right from the get-go….Whether it’s preparing merchants to quickly address the litany of sales tax holidays or helping businesses run entirely on bitcoin, Avalara works hard to ensure customers have real solutions, real fast. The ability to process sales tax for Bitcoin transactions is one of the final, necessary steps to support bitcoin-driven business models – and the latest example of our forward-thinking approach.”
While the recent IRS ruling did not discuss sales tax, as it was in the U.K., it doesn’t make a difference. Even bartering is subject to sales tax, which effectively covers bitcoins even when considered property.
With Bitcoin too, you can apparently remit payments to the government- even the bitcoins themselves, should the business decide not to do a conversion first (they are converted later though). In January, we reported on a similar service offered by Snapcard.
The following depicts Avalara’s end-to-end process in handling the sales tax process: