Avalara vs. Vertex: Features, Pricing & Which One to Choose

With digital transactions skyrocketing and tax regulations constantly evolving, selecting the right software solution for sales tax compliance is crucial. 

Enter Avalara and Vertex, the top 2 names in cloud-based tax automation. They promise to streamline your processes while keeping you on the right side of regulatory hurdles. 

But with their powerful features and varying pricing models, how do you decide which one can help you avoid penalties, streamline your operations, and focus on growing your business?

Luckily, doola can help you. We will register your business for sales tax and reseller certificate without the hassle. This will allow you to avoid penalties, streamline your operations, and focus on growing your business.

But first, let’s dive into the ultimate comparison of Avalara vs. Vertex!

Avalara vs. Vertex: Quick Comparison

While both aim to simplify and streamline businesses’ tax compliance processes, they have some key differences that set them apart. 

Avalara: Detailed Analysis

Avalara offers cloud-based tax compliance that helps businesses automate sales tax calculations, returns filing, and compliance reporting. 

It is ideal for businesses that deal with a high volume of sales and need to comply with multiple tax laws in various locations. 

This includes online retailers, e-commerce platforms, manufacturers, wholesalers, and distributors.

It can help you: 

• Manages global sales tax compliance

• Targets primarily large global businesses

• Offers Microsoft Dynamics sales tax automation

• Helps with tax rate calculations, return preparation, and sales tax compliance management

Key Features

• Automated sales tax calculation for different jurisdictions

• Compliance reporting and automated tax return filing

• Integration with ecommerce platforms to automatically calculate the right taxes

• Tax exemption certificate management

• Real-time tax rate updates

• Economic nexus checker

• Economic nexus notifications

• Multiple Tax Solutions for VAT/GST and excise taxes

🏆 Pros

• A cloud-based solution that’s easy to set up and accessible from anywhere

• Reliable automation that reduces the risk of human error

• Scalable for growing businesses

• Seamless integration with popular accounting/ecommerce platforms

• Customer support is available through phone, email, or chat

🚩 Cons

• Pricing can be high for small businesses

• Some advanced features require additional fees

• Some users have reported integration issues with certain platforms

• Issues with tax calculation in return orders

Pricing

Avalara offers flexible pricing plans based on the volume of transactions handled by businesses each month/year. 

While the company doesn’t list pricing plans on its website, it does offer three services with flat fees.

• Sales tax registration at $349 per location

• Business licenses at $99 per location

• Single-state filing at $42-$54/filing + activation fee

Vertex: Detailed Analysis

Vertex is an enterprise-level tax compliance solution that specializes in handling large-scale tax calculations, ERP integrations, and global tax compliance.

Its advanced features and transparent pricing make it ideal for companies dealing with complex tax requirements and calculations.

It can help you:

• Manages global sales tax compliance via Vertex Cloud

• Targets primarily large global businesses and SaaS

• Helps with tasks like real-time calculation of global sales taxes

• Monitors nexus thresholds and filing and remitting sales taxes

Key Features

• Advanced tax automation for large businesses

• Integration with ERP systems, ecommerce platforms, and payment processors

• Support for international tax compliance

• Automated tax return filing for multi-jurisdictional businesses

• AI-driven tax rate optimization

• Real-time updates on changing regulations to ensure compliance

• Smooth navigation between different modules without the need for training

🏆 Pros

• Advanced calculation engine for accurate taxation

• Real-time regulatory updates

• Reporting and audit capabilities

• Cloud-based platform accessible from anywhere

• User-friendly interface

• Automated filing processes

🚩 Cons

• Higher price point compared to other competitors

• Limited integration options with non-ERP systems

• A steep learning curve for beginners

Pricing

Vertex has per-order pricing plans that will charge you $0.12 – $0.15 per order just for sales tax calculation.

While an exact price for Vertex cannot be provided, you can expect to pay around $288-$360 for 200 orders per month.

You also have to pay an extra $1,200 for exemption certificate support and $30 for single-state tax filing.

Avalara vs. Vertex: Feature-by-Feature Comparison

While both offer a range of features to help streamline tax processes and ensure compliance, they also have significant differences. 

Here is an in-depth breakdown of key features offered by Avalara and Vertex to help you make an informed decision.

Integrations

Both Avalara and Vertex offer robust integration solutions.

However, Vertex stands out with its wide range of integrations with various ERP systems. It also offers hundreds of pre-built connectors for popular e-commerce platforms like Shopify, WooCommerce, Magento, and more. 

On the other hand, Valara has fewer integration options but supports major ERP systems like QuickBooks and Microsoft Dynamics.

Automation Capabilities

With Avalara’s automation capabilities, such as auto-tax calculation and filing automation for recurring sales transactions, you can save time and minimize errors in their tax calculations. 

Vertex also offers similar features and additional capabilities, such as automated address validation, to ensure accurate sales tax rates are applied.

Compliance

Both Avalara and Vertex have built-in compliance checks to help businesses stay compliant with changing regulations. 

However, Vertex excels in this aspect by offering a centralized data repository that maintains up-to-date tax rates for over 140 countries worldwide.

User-Friendliness

Avalara’s user-friendly interface allows users to manage their sales taxes without any technical expertise. Its dashboard design is intuitive and straightforward. 

While Vertex also has an easy-to-use interface, it might require some initial training due to its extensive range of features.

Customer Support

In terms of customer support, both Avalara and Vertex offer excellent resources such as knowledge bases, training videos, webinars, and dedicated support teams. 

However, Avalara provides 24/7 phone and chat support, while Vertex only offers email support during business hours.

Avalara vs. Vertex: Pricing Comparison

Both Avalara and Vertex do not disclose their pricing on their websites, so you’ll have to book a sales demo to get a quote.

Both companies have feature and volume-based pricing. However, they are not as transparent with pricing and often charge extra fees for additional services, such as filing returns. 

Avalara has been criticized for hidden fees, with many users complaining about fraudulent upgrades and unexpected costs that can strain budgets and erode trust.

For Avalara, these may include implementation fees for setting up their solution as well as additional charges for services such as training or integration with other systems.

On the other hand, some of Vertex’s hidden costs may include fees for add-on services like cloud hosting or support packages that are not included in their base plans.

Avalara vs. Vertex: Which One Should You Choose?

When it comes to choosing between Avalara and Vertex, there are specific scenarios where one may be a better fit than the other. 

Due to its lower pricing plans, Avalara may be the better option for businesses with limited budgets or minimal sales tax compliance needs. 

With monthly billing options and no long-term contracts required, Avalara offers flexibility for small businesses that may want to test out the platform before committing.

Vertex, despite its higher pricing plans, may be the preferred choice if you require more advanced features or have specific compliance needs. 

Also, if budget is not a constraint and your business operates at both national and international levels with intricate sales tax regulations, then we recommend Vertex. 

The software’s unparalleled ability to handle complex compliance issues makes it stand out from competing providers like Avalara.

Is There A Better Alternative to Avalara and Vertex? Meet doola

While Avalara and Vertex are strong tax automation solutions, they are not the only options available.

If you’re looking for a simpler, more affordable way to manage your sales tax compliance, doola provides a complete solution tailored for e-commerce businesses, startups, and entrepreneurs.

Unlike Avalara and Vertex, which focus on automation software, doola offers a done-for-you approach, handling everything from sales tax registrations to ongoing compliance.

So, you don’t need to worry about setting up complex software or handling tax calculations yourself.

Our team takes care of everything for you:

• Sales tax registration in any U.S. state

• Automated filings to keep you compliant across all states

• Reseller certificates to help you avoid unnecessary taxes

• Expert guidance to ensure you meet all tax requirements

• Transparent pricing with no hidden fees

Book a demo here to learn more.

doola: The Perfect Complement to Tax Automation

Both Avalara and Vertex offer robust sales tax automation tools. However, as beneficial as these automated solutions are, they may not be sufficient on their own.

We understand that while automation can simplify and expedite certain aspects of sales tax management, it cannot replace human intelligence and input entirely.

Our Sales Tax & Reseller Certificate services are the perfect complement to tax automation. Our trained professionals work diligently with you to ensure accurate records are maintained.

We keep you updated on all state-specific exemption requirements so you can rest assured that your business remains compliant across different jurisdictions.

Book a free consultation with us today and streamline your sales tax process.