Avalara, Inc., a leading provider of cloud-based tax compliance automation for businesses of all sizes, today announced that Drop, an Italian technology company, is improving compliance and saving time with Avalara’s core software solutions for tax calculations and returns. The Italy-based company has been helping retailers sell for 20 years, and its customers’ products are shipped to buyers around the world, including Australia, Canada, Singapore, the U.K., and the U.S.
Prior to automating its tax processes, Drop operated in the ecommerce space and calculated sales and use tax, VAT, and GST manually. Not only was this a heavily manual process and a headache for the Drop team, accuracy was also an ongoing issue. In 2022, Drop received notification that it exceeded tax thresholds in Canada and the U.S., and was required to register to collect tax within certain Canadian provinces and U.S. states. The company scoured the internet for tax compliance providers and asked partners for recommendations.
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“We sought a tax compliance provider that integrated with our internal software and major ecommerce platforms in the market. We leverage all of the major platforms to run our business, so Avalara was the clear choice for our tax compliance needs,” said Stefano De Angelis, Project Manager at Drop. “Since implementing Avalara software, Drop has reduced the time we spend on tax compliance from two business weeks a month to three to four days a month — which is a 65% gain in efficiency for our global business!”
Drop calculates tax on nearly 10,000 transactions a year using Avalara AvaTax and files more than 150 returns annually using Avalara Returns. One of the top benefits of using Avalara Returns is Drop’s ability to make a single payment each filing period to remit tax in the 22 U.S. states where it sells and another for Canada.
“Companies, like Drop, who are growing globally trigger new tax compliance obligations by simply expanding into new countries and channels,” said Liz Armbruester, EVP of Customer and Compliance Operations at Avalara. “Avalara’s specialized tax compliance solutions support a company’s growth and are available in more than 75 countries. With our robust partner integrations, AvaTax, our core product, seamlessly plugs into existing platforms to automate day-to-day compliance for tens of thousands of companies around the world — making compliance faster and easier.”
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