Avalara AvaTax vs DAVO Sales Tax

Avalara AvaTax calculates tax in real time for sales and purchasing workflows. It covers sales tax, consumer use tax, VAT, communications tax, occupancy and lodging tax, and excise tax, and supports automated return filing and tax registration. Address validation uses geospatial technology to match transactions to tax regions rather than relying on ZIP codes. AvaTax connects with ecommerce, ERP, accounting, sales, and purchasing systems, and its REST API supports calculation, document modification, and address validation. Product taxability codes, AI-assisted item classification, custom rules, exemption certificate management, and jurisdiction-specific tax research support tax decisions. Reporting includes dashboards, natural-language search, and audit-ready trails. The service is available through web and API, with integrations including Shopify, NetSuite, QuickBooks, SAP, and Salesforce. Core Compliance costs $79 per month; Core Compliance + SST Services costs $69 per month for qualifying sellers. Qualified sellers may receive state-funded services in up to 25 states. Pricing also varies by plan and transaction volume.

DAVO Sales Tax automates sales-tax collection, filing, and payment from a connected point-of-sale system. Each day it moves the exact tax collected into a separate holding account, then files state returns and pays the amount due. Listed integrations include Clover, Square, Toast, Lightspeed, SkyTab, SpotOn, TouchBistro, Revel, Payanywhere, QuickBooks, and other POS systems. Users receive daily sales and tax report emails and can view sales information, tax details, and payment confirmations online. Reports, returns, and historical data have unlimited storage. The web service provides live setup help, continuing chat and technical support, and scheduled onboarding calls. DAVO says setup takes about five minutes after connecting a POS and entering business, tax, and bank information. It is designed for small brick-and-mortar businesses such as restaurants, salons, spas, and retail shops. The first monthly filing is free through the activation month; a paid subscription begins automatically the following month unless canceled. No plan price is listed, and there is no free plan.