Avalara helps Xero users simplify tax compliance with automation for sales tax, exemptions, and cross-border transactions.​

For U.S.-based businesses, staying on top of sales tax obligations has never been more critical — or more complicated. From evolving economic nexus laws to tariff shifts and international trade friction, tax compliance is no longer a background function. It’s a core part of operational success — and a source of risk if neglected.

That’s where Avalara comes in.

Sales tax automation, right from your Xero workflow

Avalara’s direct integration with Xero gives U.S.-based users a smarter way to manage sales tax. From invoice creation to return filing, Avalara AvaTax automates tax calculation, tracks taxability rules by jurisdiction, and helps to ensure the right rates are applied in real time.

For Xero users, that means no more chasing rate tables or second-guessing nexus obligations. You can manage your books and your compliance in the same place — and do it with more confidence.

Navigating sales tax in the Wayfair era

Since the Supreme Court’s South Dakota v. Wayfair ruling in 2018, nearly every state has adopted economic nexus thresholds. For businesses selling across state lines, that means a growing list of jurisdictions where sales tax registration, collection, and filing are required — even if you don’t have a physical presence there.

Avalara simplifies this complexity by automatically tracking your transaction volume against state-specific thresholds. Once you cross a limit, the platform alerts you and supports quick registration, helping to ensure that you stay compliant without needing to be a tax policy expert.

When exemptions become obstacles

B2B sellers face a different challenge: exemption certificates. Tracking, storing, and validating certificates manually introduces unnecessary audit risk. Missing or expired certificates can trigger penalties — even if you didn’t collect tax by mistake.

Avalara Exemption Certificate Management (ECM) integrates with AvaTax and lets customers submit and update their certificates online. The system verifies information instantly and stores everything securely, giving you audit-ready confidence without the paperwork chase.

Keeping up with tariffs: cross-border trade is complex — and critical

As more U.S. businesses import goods or expand ecommerce internationally, compliance needs to extend beyond sales tax. Cross-border shipping introduces customs duties, import taxes, and a patchwork of international rules that are just as complicated — and just as critical to get right.

Avalara Cross-Border automates Harmonized System (HS) code classification, calculates or estimates landed costs (including tariffs and VAT), and helps ensure accurate customs documentation. It also supports trade restriction checks and regulatory flags. “Avalara’s suite of compliance services can help you stay on top of this rapidly changing environment, giving you peace of mind that you are keeping pace with the changes,” says Craig Reed, General Manager of Cross-Border at Avalara.

Whether you’re sourcing goods from overseas or selling into international markets, Avalara helps reduce delivery delays, surprise duties, and customer complaints — while giving you confidence that your trade compliance isn’t holding your business back.

All-in-one compliance that grows with your business

Whether you’re adding products, expanding to new states, or looking overseas, Avalara’s tax automation platform scales alongside your business. With the Xero integration as a starting point, you can unlock a range of add-ons as your compliance needs evolve — from advanced reporting to international tax support.

Key features U.S.-based Xero users can leverage:

• Real-time U.S. sales tax calculation across jurisdictions
• Automatic economic nexus tracking and alerts
• Exemption certificate collection, validation, and storage
• Seamless sales tax return prep, filing, and remittance
• Optional cross-border tariff classification and landed cost tools
  

Built for Xero. Backed by Avalara.

Avalara’s integration was purpose-built for Xero’s U.S. users. It’s a plug-and-play solution that connects sales tax automation directly to your accounting platform. It’s also supported by over 1,200 signed partner integrations across ecommerce, billing, ERP, and CRM tools — so your broader tech stack stays connected.

With Avalara, you don’t just gain automation — you gain a compliance strategy that works across your entire business.

Why it matters now

Sales tax is getting more complex. Tariffs are shifting. Cross-border commerce is growing. And compliance risk doesn’t just hit big businesses — it affects every seller shipping across state or national lines.

But tax compliance doesn’t need to be an obstacle. With Avalara and Xero, it becomes a built-in part of how you do business — automated, integrated, and built to scale.

Because when you do tax right, you can focus on what really matters: growing your business.