Avalara Tax Automation Software User Guide
- June 9, 2024
- Avalara
Table of Contents
Tax Automation Software
User Guide
PARTNER GUIDE
Avalara industry solutions for software and SaaS
OVERVIEW
The world of tax legislation changes quickly, and your clients are undoubtedly
feeling the effects of it. The reality is that sales tax isn’t going to get
easier for software companies anytime soon. The more you can predict and plan
for these changes in your business, the better off you’ll be. Avalara’s tax
automation software integrates with your ERP, ecommerce, and other financial
systems, making it easier to prove compliance and plan for growth. Share
Avalara’s solutions for the software industry with your clients using a
collection of assets, including email templates, social media posts,
newsletter copy, and blog content.
INTRODUCTION
SALES TAX COMPLIANCE FOR SOFTWARE COMPANIES CALCULATIONS
Get sales and use tax calculations based on the latest rules and rates
delivered to supply line or invoicing applications in real time.
RETURNS
Offload the returns process, from preparation and filing to remittance. Track
various filing calendars and manage requirements for each jurisdiction.
DOCUMENTS
Automatically omit tax from exempt sales and efficiently manage exemption
documentation from the cloud.
AVALARA CAN HELP YOUR SOFTWARE CUSTOMERS SOLVE COMMON COMPLIANCE
CHALLENGES:
Track sales and excise tax automatically: Remote selling thresholds,
remote employees, physical locations, and affiliate relationships can create
myriad tax obligations. Automation can help your customers stay compliant by
tracking tax and rule changes across jurisdictions.
Know when and where they should file and if their business triggers a new
tax obligation:
Software companies inevitably accrue more nexus obligations when they sell
across jurisdictions or internationally. Avalara can help your customers
monitor nexus thresholds in each state, so they don’t have to spend time
looking up complex tax rules. They’ll also get help tracking filing
requirements so they can file on time everywhere they need to.
Keep up with complex rates and rules for different tax jurisdictions, even
internationally:
Understanding and managing all the distinct tax calculations required for
software sales is challenging as it is. Add thousands of tax jurisdictions
(each with a different set of rules) to the equation and it can get messy in a
hurry. The Avalara tax engine accounts for different product taxability rules
in each jurisdiction and applies rates based on the details of each individual
sale.
Be audit-ready with detailed reporting capabilities: Tax documentation is
a hassle, even more so when incorporating all the distinctions of software
tax. Help your customers avoid costly fines from audits when they have all
their necessary documentation at the ready.
Scale with growth: If your customers are selling in new markets or
expanding their product line, they’re likely accruing additional tax
obligations. By automating time-consuming tax compliance tasks, they’ll be
able to focus on what matters most to their business.
AVALARA PRODUCTS AND SOLUTIONS FOR YOUR SOFTWARE CUSTOMERS:
AVALARA AVATAX
- Reduces manual effort and risk of errors in sales and use tax calculation
- Helps automate the costly, tedious process of keeping up with ever-changing rules of how, where, and when products are taxed
- Updates sales tax data automatically in existing business applications so your customers can keep up with tax rate and rule changes across jurisdictions
AVALARA RETURNS
- Automates the preparation and filing of state and local returns, including electronic filing as required
BUSINESS LICENSES
- Reduce the complexity and burden of managing compliance
- Save time using one simiple form to register for sales tax in all states you’re obligated to collect and remit sales tax
- Get a comprehensive view of your license requirements with one simple questionnaire
- Automate the process of managing your licenses through a single and secure database
AVALARA EXEMPTION CERTIFICATE MANAGEMENT
- Automates the collection, validation, and application of exemption certificates at the point of sale
- Stores and manages certificates in the cloud for easy access
- Applies the right tax or exemptions automatically to reduce errors, credits, and rebills, and to prevent over – and underpayments
CHALLENGES FACING THE SOFTWARE INDUSTRY:
The nature of software and SaaS sales often means companies of all sizes
handle international sales
With different rates, rules, and processes for each country, staying compliant
can be hard for large corporations, let alone small and midsize businesses
Industry growth and product expansion has added new tax complications
Tax-exempt sales can be difficult to process online; but in some states,
software vendors are considered manufacturers, and some of their sales are
exempt
Updating sales tax rates for subscription services and recurring billing can
feel impossible
If your customers get rates wrong, they risk routinely overcharging or
undercharging their customers, which can lead to lost customers or
noncompliance
To whom your customers sell can affect taxability — they need an efficient
exemption process for sales to nonprofit, government, and religious
organizations
CHECK OUT THE AVALARA INDUSTRY GO PAGE FOR SOFTWARE
ASSET SUMMARY AND GUIDELINES
Included in this guide are various easy-to-use templates for introducing your
clients to Avalara industry solutions for software:
Emails (3)
LinkedIn/Twitter posts (6)
Newsletter blurb (1)
Blog content
Call scripts and FAQ
Landing page
EMAIL
(3)
Customize email copy by replacing [PARTNER] with your business name.
SOCIAL MEDIA (6)
Download images here to accompany your post copy.
NEWSLETTER (1)
Incorporate these blurbs into your client newsletters or updates.
BLOG CONTENT
Work with your PMM or SAM to get approved blog copy then refer to this page
for your required HTML tagging.
CALL SCRIPTS AND FAQ
Use the scripts and FAQ to address client pain points, answer key questions,
and explain next steps.
EMAIL TEMPLATE #1
SUBJECT LINE:
Ready to simplify software tax compliance?
PREVIEW TEXT:
Learn how our partner, Avalara, can help streamline your processes
CALL TO ACTION BUTTON/LINK:
Learn more
https://www.avalara.com/simplify/en/avatax/meetavalara-your-partner-in-
softwaretaxcompliance.html
EMAIL BODY:
Hi [FIRST NAME],
Navigating the maze of frequently changing software tax requirements is
difficult and never-ending. Avalara can help bear the burden by automating your
tax compliance processes. [PARTNER] is working with Avalara on software
solutions that can help your business:
- Reduce risk of exposure by making sure you’re accurately keeping up with requirements
- Increase efficiency by automating tax compliance and reducing time drain
- Integrate software solutions with your existing systems, including billing and ecommerce platforms
Contact us today to learn more.
[PARTNER CTA] EMAIL TEMPLATE #2
SUBJECT LINE:
Tax solutions that simplify compliance
PREVIEW TEXT:
Dive into tax automation for the software industry
CALL TO ACTION BUTTON/LINK:
Learn more
https://www.avalara.com/simplify/en/avatax/meetavalara-your-partner-in-
softwaretaxcompliance.html
EMAIL BODY:
Hello again [FIRST NAME],
Our partner, Avalara, provides automated solutions that deliver updated,
multi-tax rate calculations to help simplify the increasingly complex web of
software tax rules. Automating your tax compliance processes with Avalara can
help free up resources to drive efficiency and reduce costs.
Learn how [PARTNER] and Avalara can help.
[PARTNER CTA]
EMAIL TEMPLATE #3
SUBJECT LINE:
Automate your tax compliance processes
PREVIEW TEXT:
Let Avalara handle software tax compliance
CALL TO ACTION BUTTON/LINK:
Learn more
https://www.avalara.com/simplify/en/avatax/meetavalara-your-partner-in-
softwaretaxcompliance.html
EMAIL BODY:
Hello again [FIRST NAME],
Automating your tax compliance processes with our partner, Avalara, can save
time, increasefficiency, and reduce risk for your company.
That’s why more than 30,000 customers, including thousands of software
companies arounthe globe, trust the Avalara platform to handle the tax
compliance needs of their businesse
Learn how [PARTNER] and Avalara are teaming up to help you simplify tax
compliance.
[PARTNER CTA]
SOCIAL MEDIA
Click here to download images for your social media posts
POST #1
COPY:
Sales thresholds, remote employees, physical locations, and affiliate
relationships can create many tax obligations. Automation can help your
company stay compliant by tracking tax filing requirements anywhere you sell.
Learn more from our partner, @Avalara.
URL:
https://www.avalara.com/simplify/en/avatax/meetavalara-yourpartner-in-
softwaretaxcompliance.html
POST #2
COPY:
Our partner, @Avalara, automates tax rate calculations so you can spend less
time keeping up and more time moving forward. Together, we can help you
streamline your tax
compliance processes.
URL:
https://www.avalara.com/simplify/en/avatax/meetavalara-yourpartner-in-
softwaretaxcompliance.html
POST #3
COPY:
Software and SaaS companies inevitably accrue more nexus obligations when they
sell across state lines or internationally. Our partner, @Avalara, can help
your company stay
compliant by tracking nexus thresholds and tax rule changes across
jurisdictions and borders.
URL:
https://www.avalara.com/simplify/en/avatax/meetavalara-yourpartner-in-
softwaretaxcompliance.html
POST #4
COPY:
Sales tax doesn’t have to be hard. Download the 5 steps to manage software
sales tax from our partner, @Avalara.
URL:
Work with your Avalara partner marketing manager to get a unique download link
POST #5
COPY:
Our partner, @Avalara, can help your company stay compliant by tracking nexus
thresholds and tax rule changes across jurisdictions and borders. Download the
Software
executive’s guide to sales tax now.
URL :
Work with your Avalara partner marketing manager to get a unique download link
POST #6
COPY:
Understand software taxability complexity with help from our partner,
@Avalara. Download this free infographic now.
URL:
Work with your Avalara partner marketing manager to get a unique download link
NEWSLETTER
NEWSLETTER:
The software industry faces several challenges related to sales and use tax,
and many variables must be considered to accurately calculate tax on software
sales. Remote selling thresholds are only one part of the equation. Other
factors common to software companies — such as physical locations, remote
employees, or affiliate relationships — can
also create tax collection, reporting, and remittance obligations. Automating
your tax reporting with our partner, Avalara, can help you stay compliant by
tracking tax and rule changes across jurisdictions.
CTA :
Get started with our partner, Avalara
URL :
https://www.avalara.com/simplify/en/avatax/meetavalarayour-partner-in-
software-tax-compliance.html
BLOG CONTENT
HOW TO USE BLOG
Partners must agree to embed this canonical tag into their HTML code on the
back end of their web page for the blog post. Embedding this tag is a simple
task for an IT or marketing professional; partners, however, absolutely must
agree to do it. Failure to use this tagging would result in Google’s search
engines assuming that the content is plagiarized, which could dramatically
lower our partners’ SEO scores.
HTML CODE:
<link rel=”canonical”
href=”https://www.avalara.com/us/en/research/tax-changes/industry-
tax-1.html#software”/>
BLOG COPY MUST ALSO END WITH A CTA LINKING TO AVALARA TAX DESK:
https://www.avalara.com/blog/en/north-america.html
Work with your PMM or SAM to get approved blog copy
CALL SCRIPTS & FAQ
CALL SCRIPT #1 (INTRODUCTION)
Hello [CUSTOMER NAME],
I am calling to chat with you about your current tax compliance tools and to
find out if you’re interested in streamlining them with a new solution. The
ongoing changes to license and tax requirements in the software industry can
be confusing and time-consuming.
That’s where our partner, Avalara, comes in. Together, we want to make sure
you’re equipped with whatever you need for end-to-end tax compliance. Their
automated, cloud-based software integrates with the systems you’re already
using and can help your tax calculations to be more accurate and efficient.
How much time do you think you could save every month if you didn’t have to
rely on manual processes for the following:
[Note: Pick one or two of these depending on customer needs.]
- Researching rates, legislation, and regulatory changes on an ongoing basis
- Technical challenges, billing issues, and error accountability
- Figuring out a specific state or country’s tax requirements
We’re excited because we know Avalara can help businesses of all sizes by
providing trustworthy solutions built for the software industry that can
positively impact the bottom line for companies like yours. In 2021, Avalara
was named a Leader in three IDC MarketScape reports on worldwide tax
automation and we’re proud to partner with Avalara. Are you interested in
hearing more about how we can help your software business stay tax compliant?
CTA: Book a follow-up meeting
- Contact Avalara at 877-296-5664
- Contact us at [PARTNER EMAIL/PHONE NUMBER]
CALL SCRIPT #2 (VOICEMAIL)
Hi [NAME], this is [PARTNER].
We want to make sure you’re equipped with the tools your team needs for end-
to-end tax compliance. Stay on top of the complexities of tax compliance with
a complimentary risk assessment from our valued partner, Avalara. If you’d
like to speak with a tax compliance and automation expert, call me at [PHONE
NUMBER] to schedule it.
Again, this is [PARTNER], you can call me at [PHONE NUMBER]. Hope to hear from
you soon.
CALL SCRIPT #3 (FOLLOW-UP)
Hi [NAME], this is [PARTNER].
Since we’ve already spoken about tax compliance, I’m calling to follow up. As
your business continues to grow, so will your technical needs. Great
opportunities can show up on your doorstep and you don’t want to have to turn
them down because you’re not prepared.
Speed, reliability, and seamless scaling are critical. For the software
industry specifically, tax laws are complicated, and remote employees, global
sales, and affiliate relationships add complexity.
I’d love to connect you with one of our tax compliance experts to chat about
how automating with our partner, Avalara, can help your business stay
compliant as you grow.
CTA: Book a follow-up meeting
- Contact Avalara at 877-296-5664
- Contact us at [PARTNER EMAIL/PHONE NUMBER]
FAQ
HOW CAN AVALARA SAVE MY COMPANY TIME AND RESOURCES?
– Avalara automates complex compliance processes for customers, freeing up
time to focus on other areas of your business.
– Avalara can help you file more accurate returns, resulting in less time spent
on compliance and fewer fees for errors or penalties.
– Streamlined Sales Tax can help offset the cost of using a tax technology
provider. Avalara is an SST Certified Service Provider.
WHY WOULD I USE AVALARA INSTEAD OF MY IN-HOUSE TEAM?
– Avalara reduces the overall time spent on compliance and allows your team to
focus on making and producing products rather than working on compliance-
related issues.
– If your in-house solutions are not manually updated with rate changes, then
the wrong amount of tax could be charged, resulting in added costs and risks.
WILL I BE ABLE TO SEE WHERE RETURNS, LICENSES, REGISTRATIONS, AND REQUESTS
ARE IN THE PROCESS?
– Customers can view all licenses and registrations that are currently in
progress.
– Software industry solutions from Avalara:
– Show expiration dates for licenses and product registrations
– Automatically process license and registration renewals
– Streamline product registrations, revision requests, and renewal
applications
– Supply recommendations on when to file licenses and registrations for
business changes and new product additions
– Create returns for direct-to-consumer sales including sales tax, excise tax,
markup tax, and shipment reports
WILL THIS SOLUTION SLOW DOWN MY PROCESS?
– Automated license and registration renewals and returns filing can help make
sure that work is completed on time.
– Updated tax rates are incorporated automatically, which saves your team
time.
WHAT CAN WE DO TO REDUCE TAX LIABILITY?
– Identify your potential tax calculation and filing requirements.
– Determine technology gaps that put your compliance at risk.
– Choose which compliance products your business needs.
WHAT IS STREAMLINED SALES TAX (SST)?
Streamlined Sales Tax is a state-run program that can help offset the cost of
using a tax technology provider. Avalara is an SST Certified Service Provider.
RESOURCES
READY TO LEARN MORE?
Now that you’re familiar with some of Avalara’s most popular partner marketing
resources, we recommend you take a minute to check out additional resources
that you can use to share Avalara’s solutions for the software industry.
Questions? Reach out to your Avalara partner marketing manager.
WEBSITE Avalara software industry solutions
WEBSITE Software and sales tax
GUIDE 5 steps to managing sales tax for software companies
GUIDE Software executive’s guide to sales tax
WEBINAR Tax compliance for software and SaaS companies
WEBINAR Sales tax 101 for software, SaaS, and digital goods providers
INFOGRAPHIC The complex nature of software taxability
LOOKING FOR
MORE INFORMATION?
Reach out to your Avalara strategic alliance manager
References
Read User Manual Online (PDF format)
Read User Manual Online (PDF format) >>