Worldpay, Shopgate Choose Avalara for Online Tax Compliance

Dec. 18, 2014

Worldpay, Shopgate Choose Avalara for Online Tax Compliance A U.S. based provider of tax automation software announced partnerships with two U.K.-based online payments companies this week. Bainbridge Island, Wash.-based Avalara enables e- and m-commerce merchants to comply with a patchwork of global tax regulations, wherever their customers happen to live. Yesterday, the company said it reached an agreement to integrate its technology with London-based acquirer and processor Worldpay’s payment platform, becoming a seamless part of the payment process. Avalara unveiled a similar agreement last week with mobile commerce platform provider Shopgate.

Both payment companies pointed to Avalara’s solution as a way for their merchants to avoid the headache of dealing with various state tax regimes in the U.S. as well as the VAT in Europe and transactional taxes in other global regions. With lobbying groups pushing the U.S. Congress for a change in the online sales tax (now training their sights on Chinese e-commerce giant Alibaba), it could be difficult for merchants to keep up with changes, said Kevin Dallas, chief product and marketing officer for e-commerce at Worldpay.

“We understand that it can be complicated to set up easy, compliant business processes when entering a new market,” Dallas said. “By combining our expertise with Avalara, a proven expert in tax issues, we can help ensure our customers are fully tax compliant in all areas of online trading.”

Unlike Worldpay, which has supported U.S. merchants for some time, Shopgate is in the process of expanding into North America. For its thousands of European merchants, tax compliance could be a challenge.

Andrea Anderheggen, founder and CEO of Shopgate, said the “partnership with Avalara…will support our expansion in North American markets, whilst ensuring all our international customers are able to remain compliant with the complexities of transactional taxes globally.”