Navigating the Complexities of Retail Tax Compliance: A Teamwork Commerce and Avalara Partnership

The retail industry has undergone significant changes and growth in recent years. Strategies like buy online, pick up in-store, the boom in e-commerce (both global and domestic), and the rise in multi-channel and marketplace selling have created new challenges for businesses. Alongside these changes, sales tax rates and rules are in constant flux, adding complexity to compliance efforts.

Staying on top of compliance for a retail business involves several steps, including determining nexus, registering where you sell, calculating taxes, preparing and filing returns, and managing compliance documents. These tasks become more complicated with multiple sales channels, such as marketplaces and global e-commerce.

Accommodating Growth

Global e-commerce is projected to surpass $7 trillion by 2025. Businesses that have adopted new sales channels or expanded their customer base may find it challenging to keep up with sales tax jurisdictions, regulations, and managing VAT. The retail industry doesn’t have just one busy time of year; as soon as one seasonal event ends, businesses are gearing up for the next one. This leaves little time for tax compliance tasks, such as tracking sales tax rates, adjusting for returns, and staying on top of sales tax holidays. Manual processes can result in lost time and resources.

Avalara AvaTax provides tax rates delivered at the time of sale, considering geolocation and product taxability. It addresses state sales tax holidays and helps businesses avoid the manual entry of new sales tax data for out-of-state customers or sales tax holidays. Automating tax compliance can save valuable time and resources.

Enhancing the Customer Experience

Customers expect a seamless checkout experience across all sales platforms. However, not all stores can calculate tax accurately in buy online, pick up in-store events, and not all sales channels or marketplaces can collect exemption certificates or calculate the correct taxes and duties. These failures can harm companies’ reputation with customers and expose them to costly fines for noncompliance.

Avalara Avatax and Teamwork Commerce Point of Sale Integration

The integration of Avalara AvaTax with Teamwork Commerce Point of Sale Solution enhances the seamless checkout experience by ensuring accurate tax calculations across all sales channels. Retailers can efficiently manage sales tax compliance within their POS software, eliminating the need for manual data entry and reducing the risk of errors.

The partnership between Teamwork Commerce and Avalara offers solutions to help businesses navigate the evolving retail tax landscape. Tax automation tools like Avalara AvaTax for Retail seamlessly integrate with Teamwork Commerce POS solution, providing businesses with the tools they need to stay compliant.

Explore Avalara options here or contact your Teamwork Commerce account executive for more information.