Companies like Casa Madaio and Big House Brewery can’t be blamed for trying to expand their customer base. Many wineries and breweries today sell their products direct-to-consumer. The problem is, those direct sales trigger sales tax nexus, a taxable status in sales tax law that triggers a business’s requirement to register for sales tax (and collect the tax on future sales) in a state where they have operations or a measurable economic presence, such as property, payroll, or inventory. Another Problem: Many retailers are unaware of their sales tax obligations. They may know they need to register in a state where they have storefronts, but are unaware they have nexus in the states where they are making direct-to-

When it comes to compliance, direct-to-consumer sellers of wine, beer and spirits have some unique challenges. They need to track sale and shipment information of every bottle they sell, which can be time-consuming and difficult.  A lot of that information is also hard to get.  Now, Avalara has a solution.

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SEATTLE, WA – 21. April 2021 – Avalara, Inc. (NYSE: AVLR), a leading provider of cloud-based tax compliance automation solutions for businesses of all sizes, today announced the availability of Avalara Shipping Verification for Beverage Alcohol (Avalara Shipping Verification). Avalara Shipping Verification is a new extension of Avalara for Beverage Alcohol that provides a complete solution for direct-to-consumer (DTC) alcohol companies throughout the entire lifecycle, from product licensing and registration to tax and tax return calculations.

Avalara Shipping Verification allows wineries, breweries, distilleries, importers, alcohol vendors, alcohol marketplaces and alcohol delivery apps to verify in real time key aspects of alcohol shipment compliance, including:

  • Permit requirements. Verifies that the destination requires a license to deliver the shipment in the state and that the shipper has a valid license for each jurisdiction.
  • Dry areas. Uses the destination address to confirm whether alcohol dispensing is allowed, e.g. B. wet or humid areas in dry neighborhoods
  • Volume limits. Analyzes transaction data to determine whether the licensee’s delivery exceeds volume limits per person, per household, or per state combined.
  • Age Classification. Make sure both the buyer and the recipient are of age.

The new offering also provides clear messages to e-commerce, point-of-sale, club/subscription and other order management systems when an order cannot be validated, helping to reduce shipping risk. This information can be used by retailers to determine the next steps in conducting their business and complying with regulations governing the transportation of alcoholic beverages.

Avalara Shipping Verification is a key complement to the Avalara for Beverage Alcohol software and service, which also includes the following services

  • Avalara AvaTax for alcoholic beverages. Searches and calculates rates for multiple taxes (sales tax, use tax and liquor tax) with the greatest accuracy and connects to e-commerce or accounting software that customers already use.
  • Avalara liquor license. Obtain and renew licenses from the Bureau of Alcohol and Tobacco Taxes and Trade (TTB) at the federal level and the Departments of Revenue (DOR) and Alcoholic Beverage Control (ABC) at the state level.
  • Avalara product registration for alcoholic beverages.  Automates the secure registration and renewal of products in any jurisdiction and ensures that each label is correctly registered based on account information.
  • Avalara provides alcohol for beverages. Manage the entire tax preparation process on behalf of clients, improve compliance and reduce manual steps.

Avalara launches Avalara Shipping Verification as DTC regulations for interstate alcohol shipments become increasingly complex. Regulations vary from state to state and have significant consequences for shipments that fail to comply, including the loss of licenses and permits to sell in a particular state. Avalara Shipping Verification comes with AvaTax for Beverage Alcohol and offers sellers the following benefits:

  • Risk mitigation for wine producers shipping large volumes of product, allowing them to comply with regulations, continue operations and maintain regulatory approvals.
  • Improves usability for Avalara customers to ensure compliance with delivery terms by viewing messages on their current systems.
  • This allows AvaTax customers with alcoholic beverages to save money, as this feature is included at no additional cost.
  • Saves time for customers who currently use manual processes to verify deliveries.

By 2020, our e-commerce business has exploded. We have been working hard to improve our direct selling technology, including improving transaction compliance, a critical step in online sales, said Rob Murray, owner and founder of Tooth & Nail Wine Company. Avalara’s real-time delivery verification in AvaTax ensures that transactions are compliant before they are executed, which is critical to our business. We rely on Avalara’s comprehensive beverage solution to ensure we are compliant in all destinations and can focus on building our brand.

Alcoholic beverage retailers are quickly taking advantage of the green light in the legislation, allowing a growing number of states to allow electronic commerce without a prescription, says Jeff Carroll, CEO of alcoholic beverage company Avalara. 2021 will be the year these companies implement the right technology to be operationally ready and enter new markets. Avalara Shipping Verification, our premier complement to Avalara for Alcoholic Beverages, completes the industry’s most comprehensive compliance solution for alcohol retailers with rapid growth plans.

For more information on Avalara for alcohol, click here.

About Avalar

Avalara helps businesses of all sizes meet tax requirements. In partnership 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 use tax, value-added tax, value-added tax, excise tax, communication and residence tax, and other types of indirect taxes. Avalara is headquartered in Seattle, with offices in the United States and worldwide in Brazil, Europe and India. For more information, visit avalara.com.

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