Be Ready for Anything in Tax with Avalara and SAP

If you’re in tax, you already know how complex it is. Technologies are fragmented, regulatory mandates are constantly shifting. AI is changing all of that and making it easier for organizations to stay in control of compliance and be ready for anything. Avalara and SAP provide the architecture and automation needed to future-proof tax.

For organizations running SAP S/4HANA, Avalara offers a powerful, cloud-native tax automation platform that aligns with SAP’s clean core strategy and supports enterprise-scale transformation. Together, Avalara and SAP minimize the need for custom code, add-ons, and maintenance expenses that come with managing multiple tax solutions.

A Clean Core Foundation for Innovation

SAP’s “clean core” philosophy emphasizes minimizing custom code within SAP S/4HANA to ensure agility, scalability, and seamless upgrades. Avalara’s tax compliance solutions are purpose-built to align with this strategy. Avalara’s integration with SAP S/4HANA (both Public and Private Cloud) is certified and built on SAP Business Technology Platform (BTP). Tax logic lives outside the ERP core. For IT, that’s fewer upgrade headaches and lower technical debt; for tax and business professionals it’s real-time accuracy across every transaction.

Avalara and SAP deliver:

• Real-time tax determination with AvaTax.
• Automated exemption certificate management via CertCapture.
• Returns filing and remittance through Avalara Returns.
• Global content updates across 12,000+ jurisdictions.
• E-invoicing and real-time reporting through a single API.
• E-commerce tax automation of calculation, filing, and reporting.
• Agentic AI for tax compliance using Avalara’s ALFA framework.

By leveraging SAP Business Technology Platform (SAP BTP), Avalara offloads tax logic and calculation from the SAP core, enabling organizations to maintain system integrity and automate tax compliance across sales, procurement, and invoicing workflows.

Future-Ready with AI, Real-Time Reporting, and E-Invoicing

Keeping up with growing global tax mandates can be a challenge. Governments worldwide are reforming indirect tax. The complexity of Brazil’s E-Invoicing rules and indirect tax reform alone burden organizations and entire departments doing business in the region. Avalara’s Agentic Tax and Compliance™ platform uses Avi AI agents to automate tasks like tax classification, filing, and audit preparation. Tasks that once slowed tax teams down and presented audit risks performed with Avi’s real-time intelligence give tax teams the time and insights needed to make faster more confident decisions at scale. Avi agents observe, advise, and execute tasks. Compliance is faster and more accurate with AI agents embedded in the environments where work happens – SAP, eCommerce, POS platforms, marketplaces, and E-Invoicing applications.

What’s key to Avalara’s AI success? Data. AI thrives on clean, ready to use data. In most enterprise environments getting here can be difficult. Systems are siloed, data management practices aren’t consistent, and data formats needed for tax are often very different from finance. Avalara’s Agentic Tax and Compliance deliver standardized and trusted data to SAP that is ready to be ingested by copilots like SAP Joule setting the stage for faster decision intelligence and more accurate compliance reporting across the business.

What this Means for SAPinsiders

• Avalara certified integrations deliver standardized tax compliance data that keeps the SAP ERP core clean.
• Avalara Agentic Tax and Compliance does more than inform decisions, it performs work that gives tax leaders the time needed to make faster, more accurate decisions.
• Together Avalara and SAP are ensuring enterprises are AI-ready by being a trusted source for compliance data that is standardized across systems.