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Avalara Recognized as a Leader in Three IDC MarketScape Reports on Worldwide Tax Automation

Avalara, Inc. (NYSE: AVLR), a leading provider of tax compliance automation software for businesses of all sizes, has been named a Leader in three IDC MarketScape reports covering tax automation solutions for SMB, Enterprise, and VAT.

“This is a watershed moment for Avalara as we continue to invest in our vision to be the global cloud compliance platform. Generational shifts — like ecommerce acceleration and cloud adoption — have fundamentally changed how businesses must think about managing tax in today’s digital-first world. Avalara helps businesses of all sizes stay compliant as they grow and expand into new geographies and tax types,” said Scott McFarlane, CEO and co-founder of Avalara. “Being recognized as a leader across all three IDC MarketScape categories further validates the pioneering innovation our teams are delivering daily to best serve our customers around the globe. We’re committed to removing the burden of tax compliance for our current and future customers so they can focus on growing their businesses without compliance barriers.”

The 2021 reports for the Worldwide SaaS and Cloud-Enabled Tax Automation Software market wherein Avalara is a Leader are:

  • IDC MarketScape: Worldwide SaaS and Cloud-Enabled Sales and Use Tax Automation Software for Small and Midsize Businesses 2021 Vendor Assessment (doc #US47987521, October 2021).
  • IDC MarketScape: Worldwide SaaS and Cloud-Enabled Sales and Use Tax Automation Software for Enterprise 2021 Vendor Assessment (doc #US47987421, October 2021)
  • IDC MarketScape: Worldwide SaaS and Cloud Value-Added Tax Software 2021 Vendor Assessment (doc #US47987321, October 2021)

IDC MarketScape reports are guidance tools for businesses seeking to digitize their tax compliance processes. The reports highlight an increase in the business need for a tax automation solution to mitigate new compliance risks resulting from the growing global digital economy, new and changing legislative complexity across the globe, and enhanced indirect tax enforcement tactics.

IDC MarketScape notes Avalara supports “an end-to-end compliance process, Avalara offers nexus assessment and studies, voluntary disclosure agreement and back-filing services, business licensing and sales tax registrations, world-class tax calculation, integrated returns preparation, filing and remittance, and exemption certificate management,” for more than 16,570 core customers globally.

Meeting complexity with 1,000+ signed partner integrations and world-class tax content

The new reports emphasize the importance of a robust partner ecosystem to deliver tax automation solutions through prebuilt integrations to reduce implementation time, costs, and risk for customers. IDC MarketScape recognizes Avalara’s strategy to build and maintain its ecosystem of partner integrations across ERP, CRM, billing, invoicing and POS, and ecommerce and marketplace platforms.

IDC MarketScape analysts also note Avalara’s support for a wide array of tax types, including sales and use, VAT, GST, cross-border compliance, and e-invoicing, as well as industry-specific solutions for the beverage alcohol, communications, energy, hospitality, insurance, retail, and tobacco industries.

The sales and use tax for enterprise report suggests considering Avalara when “your business is undertaking a digital transformation initiative or growing and encountering sales and use tax management challenges such as navigating regulatory changes, M&A, adding new products or services, selling in new geographic areas, expanding omnichannel and international sales, or using complex purchasing processes.”

Enabling growth with global tax content and real-time compliance support

The IDC MarketScape reports highlight the importance of worldwide tax rates, rules, and regulations for businesses seeking to grow in the global economy. Avalara maintains a leading global database of regularly updated tax content that spans major industries and global tax jurisdictions to provide businesses selling internationally with a source of truth for tax across jurisdictions.

The IDC MarketScape report on VAT also underscored the need for real-time compliance capabilities, including solutions for e-invoicing and EDI transfers. The report noted, “With the 2021 acquisition of INPOSIA, Avalara has expanded its real-time compliance capabilities. INPOSIA owns or manages 19 integrations into country-level tax reporting systems and is a certified access point for the exchange of electronic invoices between private companies and public authorities on the Pan-European Public Procurement OnLine (PEPPOL) network.”

“The digitalization of businesses and globalization of commerce are overarching themes in each of our tax automation IDC MarketScape reports. Digital transformation globally is creating mounting tax complexity for businesses of all sizes, prompting more to turn to technology and automation,” said Kevin Permenter, research manager at IDC. “Avalara has always been proactive in anticipating and addressing the ever-evolving compliance needs of businesses, whether it’s a small storefront seller who wants to sell online, a mid-sized retailer selling omnichannel across online and brick-and-mortar platforms, or a global enterprise with complex multinational compliance needs. Our expectation is that Avalara will continue to innovate, add new content to serve additional industries, tax types, and geographies, and continue expanding their partnerships to make tax automation available wherever transactions occur.”

Get more information on the new IDC MarketScape reports here.

About Avalara

Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, GST, excise, communications, lodging, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in Brazil, Europe, and India. More information at

About IDC MarketScape

The IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.


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