How Integration and Collaboration Drive Value in Tax Compliance

As the global tax landscape grows more complicated, organizations must find every advantage that they can to ensure compliance and manage sales tax calculations. Companies must seek out the best integrations that can meet their needs and deliver quick time to value.

Integrations are essential for effective SAP tax compliance because they ensure seamless data flow between financial systems, reduce manual work, and enhance accuracy across tax processes. Without proper integration with tax engines, reporting tools, or external compliance systems, tax departments face increased risks of errors, delays, and non-compliance.

Integrated tax solutions, such as those from Avalara, allow real-time tax calculation and automated reporting directly within SAP. This reduces the need for manual data entry and reconciliation, which are prone to errors and can lead to costly penalties.

Avalara and SAP

The integration between Avalara and SAP extends across a range of SAP solutions, catering to different business needs and sizes. Avalara’s partnership with SAP provides a comprehensive suite of integrated solutions designed to automate and simplify sales tax compliance. By offering real-time calculations, automated returns processing, and efficient management of compliance documents and licenses within the SAP ecosystem, Avalara enables businesses to save time, reduce errors, and focus on their core operations.

Avalara is not just able to integrate with SAP – its Avalara AvaTax solution for SAP S/4HANA & SAP ERP is an SAP Endorsed App. Beyond real-time calculations, Avalara also offers Avalara Returns, which further simplifies the sales tax process. By leveraging data directly from AvaTax, Avalara Returns can tally the taxes owed in designated jurisdictions, prepare and file the necessary returns, and even remit payments on behalf of the business. This end-to-end automation significantly reduces the administrative burden associated with sales tax compliance.

Furthermore, the partnership encompasses solutions for managing compliance documents and licenses. Avalara Exemption Certificate Management allows businesses to efficiently collect, verify, store, renew, and manage tax exemption certificates, thereby reducing the risk of audit penalties. Additionally, Avalara Licensing facilitates the process of obtaining various non-regulated licenses, permits, and registrations across the United States, including state and local sales tax registrations.

Learning more at Sapphire

For organizations hoping to learn more about Avalara’s partnership with SAP, Avalara’s Anders Knox will present at SAP Sapphire. Knox will appear alongside Maziar Zarrehparvar, Convenor of the Oxford Commission on Sustainability Data Finance Working Group at the University of Oxford. Together, they will demonstrate how companies can turn tax compliance into AI-ready insights.

Avalara and Oxford are working together to develop a prototype of standardized and verifiable tax and compliance datasets. These datasets can help answer key questions without exposing underlying data. Attendees will learn how this approach helps reduce the cost of capital, streamline operations, and support AI-driven decisions.

What This Means for SAPinsiders

Integrations are essential for keeping pace with shifting requirements. As global tax rules grow increasingly complex, SAP integrations like Avalara ensure that tax compliance processes remain efficient, scalable, and accurate—empowering tax professionals to focus on strategy rather than transaction processing. In short, integration is the backbone of modern, proactive tax compliance in SAP environments.

Streamline SAP environments with trusted partners. As SAP organizations aim to bolster their tax workflows, they should seek out solutions that are designed to work within their ERP systems. Organizations are turning to solutions like Avalara’s AvaTax, as it is an SAP Endorsed App, designed to help customers drive innovation and deliver value. Meeting the requirements needed to be an SAP Endorsed App ensures that companies using Avalara are able drive value within tax workflows.

Adopt a learning mindset and find emerging solutions. Companies are constantly searching for further opportunities to bolster their tax workflows, such as leveraging AI to support their decision-making. Companies should take every opportunity to bolster their capabilities and drive further value within crucial areas of their business.