Avalara launches free version of sales-tax reporting service

TrustFile helps e-tailers figure out where to collect, as well as when and how they should report.

You may want to forget about taxes for a day or two now that this year's individual filing deadline has come and gone, but we all know that's not realistic — especially if you happen to run a modest e-commerce business.

Moving foward, one of the biggest challenges for small businesses selling online is the growing complexity of collecting sales taxes across multiple jurisdictions. So, Avalara, which provides services for tax administration, has created a free version of its TrustFile reporting service to help e-tailers figure out where they need to collect, as well as when and how to file. (The legacy product is a desktop application.)

The service works by allowing online sellers to upload .CSV files with their sales transaction information, for reconciling the taxes that should be paid. That means it works across many different e-commerce systems (although this sounds like a rather manual process). The service can account for taxes across 12,000 jurisdictions, and it supports both Fulfillment by Amazon sellers, and those who use PayPal.

Avalara's services integrate with enterprise resource planning, customer relationship management, and e-commerce systems. In mid-February, the 500-person company based in Bainbridge Island, received $30 million in venture capital from Battery Ventures and Sageview Capital, bringing its total raised so far to $100 million.

TaxJar offers a similar service designed to make that task simpler for businesses that use the following platforms: PayPal, Etsy, eBay, Amazon.com, and Shopify. It offers a 30-day free trial. After that, the TaxJar basic version is priced at $9.95 for up to 1,000 transactions per month.