Avalara
Climate Impact & Sustainability Data (2025)
Reporting Period: 2025
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Sales tax compliance complexity for businesses, especially small businesses.
- Complexity of economic nexus rules and varying thresholds across states.
- Complexity of retail delivery fees and their inconsistent application across states.
- Complexity of sales tax holidays and their frequent changes.
- Challenges in sourcing digital goods and services for sales tax purposes.
- Multiple taxation and nowhere sales of digital goods.
- Complexity of marketplace facilitator laws and varying requirements across states.
- Double taxation of marketplace transactions.
- Challenges in complying with excise tax requirements for specialized industries.
- Complexity of property tax compliance for businesses with assets across multiple jurisdictions.
- Challenges in complying with global e-invoicing mandates and varying timelines.
Mitigation Strategies
- Use of sales tax software to simplify compliance.
- Efforts by states to simplify remote sales and use tax compliance (e.g., eliminating transaction thresholds).
- Development of disclosed practices by SST to clarify nexus and sourcing rules.
- Use of tax automation software to manage exemption certificates.
- Use of tax automation software to calculate and remit delivery fees.
- Proactive planning and investment in sales tax software to prepare for sales tax holidays.
- Adoption of destination sourcing for digital products and software.
- Clarification of tax obligations for marketplace facilitators and sellers.
- Use of tax automation software to manage excise tax compliance.
- Use of tax automation software to manage property tax compliance.
- Use of e-invoicing and real-time reporting solutions to comply with global mandates.