Transaction tax

SWIPEBY tackles market tax with Avalara as it enables virtual drive-thru for physical businesses

When the pandemic began, many retailers adopted omnichannel retail tactics, like curbside pickup, to continue serving customers despite lockdowns and worries about exposure to the virus. While many of the world’s largest retailers were able to adapt quickly to this shift in consumer behavior, many smaller retailers found themselves with limited options due to the cost of sophisticated technology and staff to offer pickup. at the edge of the street. Recognizing this, TO SWEEP UP, a SaaS-based virtual drive-thru platform, has created a cost-effective and easy-to-use application that small and medium businesses can offer to their customers. However, with the rapid adoption of their platform by businesses across the United States, SWIPEBY faced complex sales tax obligations and turned to Avalara to meet tax requirements. licensing and tax calculation.

“We saw an opportunity to help brick-and-mortar businesses meet customer expectations by creating a platform to enable drive-thru without breaking the bank,” said Carl Turner, Founder of SWIPEBY. “When we launched, we grew rapidly, but we weren’t ready to handle the growing sales tax obligations imposed by Market Facilitator laws as more and more companies were adopting our platform. Given the breadth of the types of businesses we serve, we needed an advanced holistic tax compliance platform to meet all of our tax requirements. Avalara was our choice from the start, and we now rely on their service to handle tax compliance across the United States. »

For growing technology platforms like SWIPEBY, serving customers in new geographies or industry verticals can trigger new tax requirements. Today, 45 states, parts of Alaska, and the District of Columbia have active Market Facilitator Acts, which require marketplaces to collect and remit sales tax to authorities on behalf of their users. To date, SWIPEBY serves hundreds of customers in over 30 states.

To keep pace with SWIPEBY’s growth, the company has implemented three Avalara products: Avalara Licensing for obtaining and maintaining commercial licenses; Avalara AvaTax for calculating sales and use tax; and Avalara Returns for managing tax returns and returns. Benefits include saving time and money for licensing, tax calculations and filings. More precisely:

  • As SWIPEBY expands into new geographies and tax types, Avalara Licensing helps the company understand its federal, state, county, and local licensing requirements, as well as consolidate the correct forms, applications and costs for preparation and submission.
  • AvaTax is equipped to determine sales tax in over 13,000 sales and use tax jurisdictions in the United States – a process that can take some businesses months without automation technology. SWIPEBY also sees additional cost benefits by participating in the Simplified Sales Tax (SST) program, which covers the cost of their Avalara services in 24 states.
  • With Avalara Returns, SWIPEBY does not have to pay each jurisdiction individually. SWIPEBY now makes a single ACH payment, which Avalara uses to remit taxes to each jurisdiction individually and on time.

“SWIPEBY sits at the intersection of two high-growth areas of e-commerce today: marketplaces and curbside pickup. Carl and his team quickly recognized the hurdle that tax compliance could impose on growth and have turned to tax technology to effectively plan for future growth. By using Avalara to automate and stay ahead of new tax obligations, SWIPEBY can focus on what matters most: serving brick-and-mortar businesses. said Meg Higgins, Global Business Development Manager at Avalara.

For more information on how SWIPEBY uses Avalara to support tax compliance across all areas of its business, read the full case study.

About Avalara

Avalara helps businesses of all sizes comply with tax rules. Partnering with leading vendors of ERP, accounting, e-commerce, and other financial management systems, Avalara offers cloud-based compliance solutions for various transaction taxes, including sales and usage , VAT, GST, excise, communications, accommodation and other types of indirect taxes. Based in Seattle, Avalara has offices in the United States and around the world in Brazil, Europe and India. More information at avalara.com.