Avalara Overview & Magento 2 Integration

Although Avalara is not an accounting solution in its traditional sense, we cannot pass it by. The platform is an automated tax compliance solution which dramatically simplifies your daily duties related to tax management. If you want to keep up with rapidly changing laws, rates, and rules, you’ve come to the right place. Below, we shed light on the software as well as explore the Magento 2 Avalara Integration.

Avalara Overview

The mission of Avalara is to help businesses be tax-compliant with the minimum effort. The platform is designed to handle demanding tax obligations around the world. As a Magento 2 merchant, you can leverage the Avalara Tax Compliance Suite which consists of AvaTax, Returns, and CertCapture. All solutions offer tools for various transaction taxes: sales and use tax, VAT, communications, excise, etc. The suite introduces a user-friendly approach to calculating taxes, filing and remitting returns, and complying with document management requirements. Let’s explore its core features that can be leveraged in your e-commerce business after the Magento 2 Avalara integration.

Features

• Automation. The Magento 2 Avalara integration enables you to automate your tax management duties. The platform provides all tools necessary to reduce manual calculations so that you can spend time on other business processes.
• Cloud. Since Avalara is available in the cloud, you can manage your taxes anytime, anywhere. The platform is developed with its users in mind; therefore, the Magento 2 Avalara integration opens ample opportunities and never bothers you with tons of additional exploration.
• Size-Agnostic Platform. A business size or industry are no longer important: Avalara is suitable for everyone. Thus, there is no reason to hesitate regarding the Magento 2 Avalara integration. You can leverage the platform to satisfy the needs of a small business or a market giant.
• Scalability. Avalara grows with your business. Start small and enhance your market presence: you will enjoy the platform at every stage of your business journey.
• Flexibility. The platform is also flexible in terms of constantly changing laws and rates. You will never miss the next innovation in your local legislation paying as much tax as it is required. Avalara pushes updates to the system with no interruptions to your service.
• Customization. Although Avalara is a customizable solution, it offers a fixed price tag. Leverage a unique configuration with the Magento 2 Avalara integration without rising your expenditures on tax management dramatically.  

Avalara Solutions By Tax Type

• Sales and use tax. The Magento 2 Avalara integration will help you unify sales and use tax calculation as well as document management and returns preparation.
• Excise tax. Your excise tax compliance can be fully automated as well. You only have to connect your Magento 2 website to Avalara.
• Value-added tax (VAT). Businesses of all sizes can achieve compliance with their international VAT and transactional tax obligations with the Magento 2 Avalara integration. Freely expand into new markets, implement new technology, and become more efficient while the software solution manages VAT for you.
• Goods and services tax (GST). The Magento 2 Avalara integration eases your way with GST compliance by introducing advanced automation of all related processes.
• Lodging tax. Simplify your lodging taxes: let Avalara manage licenses, calculate tax, prepare and file returns, and more.
• Communications tax. Do tax compliance right even for such a complicated thing as communications tax. It far beyond traditional telecom to VoIP services, streaming content, and IoT but it is no longer an issue.
• Customs duty and import tax. Assign products Harmonized System (HS) codes with the Magento 2 Avalara integration to making it easier to comply with customs regulations worldwide. It is a must-have feature for international Magento merchants!

Avalara Products

Avalara offers a bunch of tools divided into several categories. Let’s explore the critical solutions.

Tax calculation

Tools for tax calculation include the following five products:

• AvaTax Sales & Use Tax. This product delivers sales tax, use tax, and VAT calculations. Rules and rates used in the process are always updates. You can get this tool with the Magento 2 Avalara integration.
• AvaTax Excise. As for this instrument, it introduces the identification and calculation of excise and value-based taxes in real time. A broad range of financial transactions is involved.
• AvaTax Communications. Calculate taxes and fees specific to communications, streaming, or other services is no longer a problem. There is a unique product in the Avalara portfolio responsible for the related activities. Connect your Magento 2 website to Avalara, and it will automatically apply them to transactions or invoices.
• Item Classification. Another robust instrument is designed to assign country-specific tariff codes to your products automatically. Consequently, the Magento 2 Avalara integration enables you to complete customs documentation confidently.
• AvaTax Cross-Border. With this software solution, you will effortlessly calculate customs duty and import tax dramatically simplifying the management of your international shipments.

Tax returns

At the same time, the Magento 2 Avalara integration enables you to manage tax returns. It offers the following instruments to simplify this process:

• Returns Sales & Use. Data from AvaTax is utilized to prepare and file your sales and use tax returns and remit payments. You no longer have to do it manually!
• Returns Excise. With this instrument, you will easily determine your applicable taxes as well as generate schedules and returns. Besides, Avalara will help you handle filing and payments for all major excise reporting jurisdictions.
• Returns Communications. It is no longer a problem to handle a return preparation and manage regulatory reporting. The Magento 2 Avalara integration lets you remit your payments to the appropriate jurisdictions with ease.
• MyLodgeTax. This Avalara instrument is designed to prepare and file your vacation rental tax returns. It easily handles a single unit or multiple properties. Furthermore, you can even draw funds from a designated account automatically.
• TrustFile. This service is designed for a sales tax return preparation and filing in e-commerce. If you have to deal with the complexities of multistate compliance, this solution will become your number one time-saver when it comes to tax returns. Add it to your favorite tools with the Magento 2 Avalara integration.

Tax document management

And you can manage tax documents using the following tools:

• CertCapture. The Magento 2 Avalata integration also offers the ability to leverage CertCapture – an instrument designed to collect, store, and manage tax documents in the cloud. Besides, it automates exemptions during the checkout process.
• VendorCapture. With this solution, you will effortlessly collect, validate, and manage federal tax forms. Thus, being FATCA-compliant and audit-ready is no longer a problem. You only have to connect your Magento 2 website to CertCapture.
• ExciseCapture. Avalara also enables the ability to store and report on different types of fuel licenses and exemptions. Next, you can apply them to transactions automatically.
• Avalara Licensing. This tool is designed especially for US businesses. It helps companies get non-regulated licenses, permits, and registrations.

Magento 2 Avalara Integration

Although you cannot use the default tools to connect Magento 2 to Avalara, there is a solution that enables seamless integration. Meet the Improved Import & Export Magento 2 extension – a universal tool that allows numerous Magento 2 integrations with external systems and other Magento 2 websites. The module is designed to help you connect your Magento 2 website to Avalara in a matter of minutes and without a single line of code. It is only necessary to install the extension on your e-commerce website. Next, Improved Import & Export will automate data transfers between Magento 2 and Avalara creating a bridge between the two platforms on the basis of API connections.

Features

The Improved Import & Export extension lets you leverage the following enhancements to run the Magento 2 Avalara integration seamlessly:

• Automated invoices and revenue tracking;
• Data synchronization for:
  • Payment methods;
  • Tax methods;
  • Magento entities (all product types, orders, customers, and invoices);
  • Avalara entities;
• Synchronization history;
• Attributes mapping to improve the accuracy of Magento 2 data in Avalara;
• Automate data transfers via schedules or triggers.
• Support for multiple stores;
• Support for various currencies.

Let’s explore several use cases to illustrate the functionality of the plugin from the perspective of the Magento 2 Avalara integration.

Order Data and Invoices

When a customer places an order on your Magento 2 website, and it is paid successfully, the corresponding information is sent to Avalara.

Income Tracking

Income tracking is another opportunity related to the Magento 2 Avalara integration based on Improved Import & Export. Our extension can quickly transfer income data from your e-commerce website to Avalara and back.

Payment Methods Mapping

Another opportunity related to the Magento 2 Avalara integration is related to payment methods mapping. To enable free data transfers between the platforms, you can map them within a few clicks.

Tax Rates Mapping

The same is about tax rates: the Improved Import & Export module provides the ability to map tax rates used in Magento 2 to Avalara ensuring that tax calculations are correct.

Other Use Cases

The Magento 2 Avalara integration based on the Improved Import & Export extension provides the ability to:

• choose what entities to move between the platforms;
• use schedules or events to enable automated data transfers;
• synchronize the two systems by mapping Magento 2 attributes to ones used in Avalara.

Get Improved Import & Export Magento 2 Extension

Avalara API

The system lets you calculate transactional taxes with accuracy and real-time product taxability information using the AvaTax RESTful API. At the same time, you can leverage the SOAP API. Note that the Avalara API includes class wrappers (adapters) for a variety of languages to assist in calling the web service.

The API for Communications helps you quickly determine taxes for telecommunication services, VoIP, internet services, etc.

As for the Excise Tax API, it is designed to determine taxes for transactions with bulk motor fuels, natural gas, petroleum products, etc. With the SOAP API, you get platform-independent access to Avalara AvaTax Excise. Note that it is possible to use it independently of other Avalara APIs.

As for the Improved Import & Export Magento 2 extension, it uses REST API to connect your e-commerce website to the tax management automation platform. If other standards are required, the module also incorporates them. To enable the Magento 2 Avalara integration, the plugin creates multiple API connections, exchanging all entities between the two systems.

Improved Import & Export Magento 2 Extension Features

We’ve already explored the tax management automation platform as well as some essential nuances of the Magento 2 Avalara integration. Therefore, let’s take a look at the Improved Import & Export features that simplify the data synchronization between the two systems. Since our extension completely revamps the default import and export functionality of the platform, you get an absolutely new way of data transfers which helps you avoid many issues associated with the built-in tools.

The default instruments don’t let you do the following things:

• Establish API connections;
• Automate data transfers;
• Map attributes;
• Import/export all entities.

As a result, it is necessary to repeat numerous processes every time a data transfer between Magento 2 and Avalara is required. Usually, you have to recreate changes applied to your e-commerce store in a tax management automation system manually. Since the integration requires multiple updates per day, it turns into a waste of time. But we offer a more reliable solution.

The Improved Import & Export extension allows transferring all information from Magento 2 to Avalara and back. Note that all processes are automated: relax while the plugin transfers data, matches different external attributes and their values from one system to another, leverages multiple API connections in the integration working with all entities. The Magento 2 Avalara integration becomes a breeze with our module.

Automated Import & Export

The Avalara Magento 2 integration is a continuous process that requires advanced automation. And Improved Import & Export provides the ability to avoid daily duties related to data transfers via schedules and event-based triggers which entirely automate them.

Schedules

Schedules represent the most intuitive and straightforward way of automation in different data transfers including the Magento 2 Avalara integration. The flow of information between the two systems is based on cron. You specify a time interval and the extension imports/exports updates according to it letting you create fully independent import and export jobs with several different options:

• custom intervals,
• customizable, predefined update schemes,
• profiles with no schedules (which are suitable for maintaining such tasks as migration to Magento 2),
• and asynchronous data transfers (launch every scheduled profile manually whenever you want).

Events

Event-based triggers are another huge improvement provided by the Improved Import & Export extension. They introduce a more flexible approach to the Magento 2 Avalara integration exchanging data in real time. Use the following algorithm to automate data transfers between the two systems:

1. Create a trigger;
2. Connect it to an event;
3. Link an action to a trigger to launch it automatically.

Thus, transferring data to Avalara with the help of a trigger dramatically simplifies the integration. When something happens in Magento 2, the plugin transfers the corresponding data to the tax management automation platform.

For instance, a customer makes a purchase on your website; the extension rapidly provides the corresponding data to Avalara. The Magento 2 Avalara Integration Add-On for Improved Import & Export will help you forget about creating similar schemes manually! Follow the link below for more information regarding triggers: How to Run Magento 2 Import or Export After Specific System Event or Process.

Advanced Mapping Features

Map Avalara attributes to ones used in Magento 2 and vice versa to enable automated data transfers between the two systems. The Improved Import & Export Magento 2 extension radically simplifies the Avalara Magento 2 integration in terms of attributes and their values with the help of the following features:

Mapping Presets

Use our module to solve the problem of different attribute standards without headaches and enable the Magento 2 Avalara integration in the most intuitive way with mapping presets – predefined mapping schemes that eliminate manual attributes matching.

You no longer need to look for unsupported attributes and fix them. Our extension performs all the necessary improvements automatically. It analyzes the input data file transferred from Avalara, discovers third-party attributes, and matches them to the ones used in Magento. As for export processes, Magento 2 Avalara Integration Add-One for Improved Import & Export knows what attributes are required by the tax management automation system and modifies ones utilized in Magento according to the rules of the external platform. You only need to select a matching scheme suitable for your migration:

Matching Interface

Importing/exporting data between Avalara and Magento 2 can also be based on manual attributes mapping right in the Magento admin! The Improved Import & Export module provides a unique matching interface which offers full control over the process: you specify external (internal) attributes and link them to the corresponding internal (external) ones in a particular grid enabling the data transfer. Here is how everything works:

Attribute Values Mapping

The Improved Import & Export Magento 2 extension offers a separate interface for attribute values mapping that provides the ability to simplify the Magento 2 Avalara synchronization and automate it entirely. With our plugin, third-party designations will no longer interrupt transfers from Avalara to Magento 2 since you can choose an external value and specify its replacement. Repeat the procedure until all third-party designations are mapped to ones utilized in Magento 2. Note that the created schemes are saved and applied for further updates. For more details, read this article: Attribute Values Mapping.

Attribute Values Editing

If attribute values mapping is not enough, you can rely on attribute values editing. Transferring data from Avalara or other systems to Magento 2 can be automated with the ability to modify attribute values in bulk. Use the following rules:

• Add a prefix to multiple attribute values;
• Add a suffix to numerous attribute values;
• Split various attribute values;
• Merge many attribute values.

Note that you can combine them and create conditions increasing the efficiency of the applied changes. You can find more information in this article: How to Modify Attribute Values During Import and Export in Magento 2.

Category Mapping

You won’t use category mapping in the Magento 2 Avalara integration. However, it dramatically simplifies other connection. You can match external categories to ones used internally reducing the number of difficulties that usually occur when products are transferred from other platforms to Magento 2. The Improved Import & Export module allows mapping external product categories to ones used in your catalog as follows:

To create new categories right in the import job, choose a parent category and specify a new one that will be generated automatically. Thus, the extension will link products to it during the import process. If your Magento 2 website doesn’t include a category from an imported file, it’s no longer a problem. You can find more information about this feature here: Category Mapping.

Attributes On The Fly

And if a data file provided from an external system lacks attributes, the Improved Import & Export Magento 2 extension lets you create them on the fly via the following general form:

Attribute|attribute_property_name:attribute_property_value|…

The feature is described here in more detail: Product attributes import.

Extended Connectivity Options

The fundamental aspect of the Improved Import & Export Magento 2 extension that enables the Magento 2 Avalara integration, as well as multiple other connections, is support for additional connectivity options. Designed to improve all data transfers and make the seamless Magento 2 Avalara integration possible, they include numerous file formats and two alternative ways of transferring data between your e-commerce store and external systems. As for Avalara, the REST API standard is utilized as a first way of the integration.

Multiple File Standards

Although the Magento 2 Avalara integration cannot be based on data files, you can leverage them in other integrations. The Improved Import & Export extension supports CSV, XML, JSON, ODS, and Excel as well as unpacks file archives automatically while the default tools work with uncompressed CSV files only!

Multiple File Sources

The following file sources can be leveraged to import and export data files between Magento 2 and external systems:

• FTP/SFTP. Transfer data files using a local or remote server.
• Dropbox. Use a Dropbox account to establish a connection between the two systems. Alternatively, you can rely on Box, OneDrive, Google Drive, iCloud, and Amazon Drive.
• URL. A direct URL can be used to import a data file as well.

Alternative Ways of Import & Export

Note that the alternative ways of import and export are not represented in Magento 2 by default. However, direct API connections are the only way to enable the Magento 2 Avalara integration.

As we’ve mentioned above, the Improved Import & Export extension provides the ability to leverage REST for the Magento 2 Avalara synchronization as well as other APIs if necessary. For instance, our module also works with SOAP (which is deprecated in the case of Avalara) and GraphQL.

Note that all API connections support other extension’s features so that you can leverage mapping, schedules, and attributes on the fly while transferring data from Magento 2 to Avalara via REST API.

As for the intermediary services, you can rely on Google Sheets, Office 365 Excel, and Zoho Sheet transferring data to your e-commerce store. Although it is impossible to utilize them for the Magento 2 Avalara integration, other connections can be established with the help of various online sheets. The following image shows how to use Google Sheets to move data to Magento 2:

The video below displays other details of our extension:

Final Words

Avalara is a number one time-saver and assistant when it comes to tax management. The platform provides numerous tools designed to simplify and automate the corresponding processes. As a Magento 2 merchant, you can leverage the platform by connecting your store to it using Improved Import & Export. For further information about the Magento 2 Avalara integration, follow the link below:

Get Improved Import & Export Magento 2 Extension