Avalara Buys DAVO To Boost Sales Tax Automation Services

Avalara, which works on tax compliance automation for businesses, has acquired the operational assets of DAVO Technologies, which helps businesses automate the requirements for sales tax, according to a press release.

DAVO’s technology connects with point-of-sale (POS) systems in order to take out the taxes owed, set aside daily tax funds, and then file and pay sales taxes for businesses when due to the state and local authorities, the release stated.

The solution gives restaurants, merchants and other small- to medium-sized businesses (SMBs) a way to make sure they have the funds available when needed and to avoid unplanned or underfunded expenses, according to the release.

There are over 4,000 businesses using DAVO in the U.S., including “coffee shops, bike stores, flower shops, bakeries, restaurants and many other types of local businesses,” the release stated.

Through acquiring DAVO, Avalara plans to benefit from a new level of help with compliance for businesses, with Avalara offering enhanced support for “licensing and registration, exemption certificates, custom data sets, pre-mapped UPC codes for taxability, omnichannel calculation, and expanded returns services as needed,” according to the release.

In addition, as both Avalara and DAVO share a partner-first model, the release noted that the technologies will work together to streamline the customer experience.

“Avalara and DAVO are natural extensions to one another; our services are complementary, and we believe there is an immediate opportunity for value to their customers and our shared partners,” said Avalara Executive Vice President of Corporate Development Jayme Fishman in the release. “The DAVO team has built an excellent, customer-centric product, and we are delighted to partner with them to help improve and expand upon their capabilities.”

Tax-related issues have been thorny for eCommerce business. The eSports market, for example, has seen bountiful growth, so authorities are considering how to tax related businesses.