Avalara is a tax calculation and filing software that integrates with Recharge on Shopify and BigCommerce. However, we have not yet approved its use until now for merchants using Shopify checkout for subscriptions & merchants who've converted to the new Shopify checkout.
We’ve tested Avalara on Shopify checkout using Shopify's own integration and determined both checkout and subsequent recurring charges both fetch tax and report tax correctly in Avalara. We’ve also validated that stores who've converted from Recharge to Shopify checkout or recently migrated to Shopify checkout are able to use Shopify's integration with Avalara to fetch tax on checkout and recurring charges. Stores who've converted from Recharge to Shopify checkout or migrated to Shopify with customers on another payment platform can additionally using our own Avalara integration to fetch tax on migrated/converted recurring charges.
How does it work?
Stores that have launched on Shopify checkout should setup Avalara on Shopify only. Shopify has an agreement with Avalara to subsidize the costs of Avalara transactions, hence all Shopify checkout and recurring charges fall under that agreement.
Stores who've recently switched to the new Shopify checkout (either via migration or via converting from Recharge checkout) should setup Avalara on Shopify and in Recharge. All Shopify checkout and recurring charges will be calculated by Shopify’s own Avalara integration (and billing agreement). All migrated/converted customers who are billed by Recharge will need to use Recharge’s Avalara integration to fetch tax. These migrated/converted customers will be billed separately by Avalara (since they do not fall under Shopify's billing agreement). All merchants still must be on Shopify Plus to use Avalara on Shopify.
Where can I learn more?
To learn more about Avalara and Recharge, visit support documentation here.
Any merchants who are waiting to convert from Recharge to Shopify checkout but have been waiting on Avalara, can now be setup with the integration by support. Please contact email@example.com for assistance setting up Avalara Avatax.