Avalara

Avalara

Avalara is an automated tax compliance platform for businesses. It embeds tax calculation scripts in e-commerce checkout flows to compute applicable sales tax in real time based on product type and buyer location. No behavioral tracking cookies are set.

Overview

Avalara is the dominant player in automated tax compliance, used by e-commerce platforms and businesses of all sizes to calculate, collect, and remit sales tax, VAT, and other transaction taxes. When Avalara's scripts appear on merchant websites, they're performing real-time tax calculations during checkout — determining the correct tax rate based on the product being sold, the buyer's shipping address, and the complex patchwork of local, state, and national tax jurisdictions.

This is one of the most operationally critical third-party integrations in e-commerce. Getting tax calculations wrong creates legal liability for the merchant.

What This Script Does

Avalara's scripts handle tax compliance calculations within checkout flows:

  • Real-time tax calculation: Queries Avalara's AvaTax engine with transaction details (product types, quantities, ship-to address, ship-from address) and returns precise tax amounts for each line item and the transaction total
  • Tax jurisdiction resolution: Determines which tax jurisdictions apply based on the buyer's address, handling the complexity of overlapping city, county, state, and special district tax rates
  • Product taxability rules: Applies product-specific tax rules — certain items may be tax-exempt, reduced-rate, or subject to special taxes depending on jurisdiction
  • Address validation: Validates and standardizes shipping addresses to ensure accurate jurisdiction assignment, catching errors that could lead to incorrect tax calculations
  • Exemption certificate handling: Manages tax-exempt transactions for B2B purchases where the buyer holds a valid exemption certificate

Avalara's scripts do not set behavioral tracking cookies. The data exchange is transactional — it processes the specific purchase details needed for tax calculation and returns the result.

Consent & Compliance

Avalara's scripts operate in a clear compliance context:

  • GDPR: The data processed (shipping address, product details) is necessary for the performance of a contract — specifically, calculating the legally required tax on a purchase the customer initiated. This falls under Article 6(1)(b) and Article 6(1)(c) (legal obligation).
  • ePrivacy Directive: Avalara does not set tracking cookies. Any session-related data is part of the checkout transaction flow and qualifies as strictly necessary.
  • Tax law compliance: Avalara exists specifically to help merchants comply with tax laws. The data processing is legally mandated — merchants are required to calculate and collect the correct tax amount.

The absence of behavioral tracking or marketing cookies makes Avalara one of the most consent-friendly third-party integrations in e-commerce.

Should You Block This Without Consent?

Avalara's scripts are essential to legal tax compliance during checkout. They calculate the tax amounts that merchants are legally obligated to collect. The scripts process only transaction-specific data needed for tax calculation and do not set tracking cookies or collect behavioral data. Blocking Avalara would either prevent checkout entirely or result in incorrect tax calculations — creating legal liability for the merchant.

No.

Is Avalara GDPR compliant?

Avalara typically loads functional trackers, which are not strictly necessary for your site to work. Under the GDPR and the ePrivacy Directive, non-essential cookies and trackers must stay blocked until a visitor gives clear opt-in consent. So Avalara can be fully GDPR compliant, but only if your site holds its scripts until consent is granted and lets visitors decline just as easily. Compliance depends on how your site loads Avalara, not on Avalara itself.

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Consent Categories

Also Known As

avalara trackingavalara cookiesavalara tax privacyavalara consentavalara gdpravalara checkout

Industries

Programming and Developer SoftwareComputers Electronics and Technology

Tracked Domains (1)

avalara.comEssential

avalara.com is an essential domain operated by Avalara, used to keep the site working, including security, load balancing, and sessions.

Frequently Asked Questions

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Manage consent for Avalara

ConsentStack automatically detects and manages Avalara trackers so your site stays compliant with global privacy regulations.