Avalara, a leading provider of cloud-based tax compliance automation for businesses of all sizes, announced enhanced capabilities for Avalara’s cross-border solution, an integrated offering that helps businesses sell internationally by managing the complexity of customs duty and import tax compliance. The new offering builds on Avalara’s range of technological solutions available to improve the cross-border compliance experience for businesses.
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“Tools that automate the cross-border compliance process provide retailers with increased duty and tax calculation accuracy, and improves the customer experience by mitigating the risk for surprise costs due to inaccurate tax charges.”
Avalara’s cross-border solution consists of Avalara AvaTax Cross-Border and Avalara Item Classification, providing users with an integrated approach or stand-alone offerings to address the complex processes of classifying products and calculating custom duties and import taxes.
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Global ecommerce places added complexity and compliance risk on businesses
Cross-border ecommerce is growing rapidly as more consumers shop online, and more businesses take advantage of the speed and ease of selling their products online. According to IDC, by 2022, cross-border ecommerce is expected to account for more than 15% of the world’s online retail market. eMarketer estimates that the global online retail market will grow to $5.7 trillion by 2022. While demand for cross-border ecommerce has risen, so has the complexity surrounding country-level tax and customs regulations.
Online retailers must meet high customer expectations when it comes to the entire shopping experience — from browsing to delivery. Cross-border sellers must ensure that customs duties and import taxes are accurately calculated at the time of checkout to mitigate compliance risks and avoid negative customer experiences with surprise costs at the time of delivery. Unfortunately, for many businesses, the task of manually assigning tariff codes and calculating customs duties and taxes is resource intensive, costly, and subject to human error.
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