Avalara Integration with Zoho: A Complete Walkthrough

If you’re looking for a reliable way to automate tax compliance, the Avalara integration with Zoho offers a complete solution. Whether you’re managing invoices, exemption certificates, or multi-state filings, this walkthrough shows how Avalara works inside the Zoho ecosystem with ease and accuracy.

In this hands-on walkthrough, Jed Sampson from Avalara joins Zenatta to explore how Avalara integrates directly into Zoho.

If you’ve been wondering how Avalara works in practice, how it handles state thresholds, or what setup looks like behind the scenes, this demo answers it all.

Watch the full video walkthrough below:

Need help getting started?

Schedule a Call with Jed at Avalara: https://avalara.chilipiper.com/book/me/jed-sampson

What This Walkthrough Covers

In this demo, Avalara’s Jed Sampson shows how Avalara works inside Zoho, including:

• Real-time tax calculation with AvaTax
• Product-to-tax code mapping
• Automated tax on quotes and invoices
• Filing returns with Managed Services
• Exemption certificate tracking and requests
• Multi-entity management and user roles
• Preview of the upcoming Zoho CRM integration

How the Avalara Integration with Zoho Works

Avalara’s AvaTax engine connects directly with Zoho to calculate tax at the time of transaction. When you create a quote or invoice, AvaTax pulls the shipping address, validates it down to the rooftop level, and determines the applicable tax rates for state, county, and city jurisdictions. Everything happens instantly in the background.

It also tracks economic nexus exposure across states. Avalara monitors your sales volume and alerts you when you’re nearing or crossing a state’s registration threshold. If you need to register, the system links you to the appropriate form to get started.

Key benefits include:

• Automatic jurisdiction-level tax calculation on every invoice or quote
• Real-time tracking of state-level economic nexus
• Notifications when you hit 80 percent or exceed 100 percent of any state threshold
• Simple workflow for initiating registrations in new states

Mapping Products to Tax Codes

The Avalara integration with Zoho simplifies what would normally be a manual, error-prone tax process. To calculate tax correctly, Avalara needs to know what you’re selling. This is handled through product tax mapping.

Inside the Avalara dashboard, you can:

• Search for the type of product or service
• Assign a tax code from Avalara’s comprehensive catalog
• Apply it once and let Avalara handle all future calculations

These tax codes are maintained by Avalara’s compliance team, ensuring that your mappings stay valid as state laws evolve. Whether you sell SaaS subscriptions, hardware, or services, there’s a matching tax code available.

How Invoices and Quotes Are Calculated

Once tax codes are mapped and AvaTax is connected, every invoice and quote generated in Zoho runs through Avalara’s logic engine. Each line item is evaluated independently. This matters because hardware, services, and subscriptions may be taxed differently depending on where they’re shipped.

Behind the scenes, Avalara:

• Validates the address and applies geolocation
• Reviews each line item’s taxability
• Applies customer exemption status if applicable
• Returns the tax total to Zoho automatically

All calculations are stored and auditable, with full visibility into how tax was determined.

Filing Returns with Managed Services

Calculating tax is only part of the challenge. Filing it accurately and on time is another. Avalara’s Managed Returns feature automates the entire process.

Here’s how it works:

• Between the 1st and 10th of each month, you can review and edit filings
• After the review window closes, Avalara locks the returns
• Funds are pulled in one batch from your account and distributed to each state
• Avalara submits the forms, payments, and documentation for you

If you want internal oversight, you can add users to review filings or approve submissions. Permissions are customizable based on role or entity.

Managing Exempt Customers and Certificates

If your business works with nonprofits, manufacturers, or resellers, you’ll need to handle exemption certificates. Avalara simplifies this process using its Exemption Certificate Management tools.

With ECM, you can:

• Track the certificate status for each customer by state
• Get alerted when a certificate is missing or expired
• Automatically send out renewal requests
• Store and validate uploaded certificates in one place

You can also run renewal campaigns to ensure certificates are updated before they expire. Avalara handles the outreach, and customers can upload documents through a secure, branded portal.

Multi-Entity Setup and Access Controls

Many businesses operate under multiple legal entities or brands. Avalara supports that structure with multi-company access from a single dashboard.

Inside Avalara, you can:

• Switch between companies with different EINs
• Set up separate filing preferences for each entity
• Assign users with custom permissions to specific entities or functions

This is ideal for holding companies, franchisors, and businesses with multiple geographic footprints.

Coming Soon: Zoho CRM Integration

Avalara already integrates seamlessly with Zoho Books, Billing, Inventory, and FSM. However, many companies also generate quotes and invoices directly inside Zoho CRM.

To solve this, Zenatta and Avalara are finalizing a new CRM extension that will:

• Enable sales tax calculations directly in CRM
• Mirror the current Books integration without needing a separate accounting app
• Offer a streamlined setup for sales teams that work entirely in CRM

This feature is currently in late-stage development and will be available on the Zoho Marketplace soon.

Why Avalara and Zoho Are a Smart Fit

Avalara removes complexity from tax compliance. It calculates accurate rates, monitors your nexus exposure, files returns, and manages exemption certificates. When used alongside Zoho’s suite of financial and operational tools, Avalara becomes a seamless part of your workflow.

You don’t have to log into state portals, juggle spreadsheets, or remember deadlines. It just works.

Get Started with Avalara and Zoho

If you’re ready to simplify your tax operations, automate returns, and avoid compliance risk, Avalara is a strong fit for any Zoho-based business. You can watch the demo or book time directly with Jed to explore how Avalara would work in your environment.

Schedule a Call with Jed at Avalara: https://avalara.chilipiper.com/book/me/jed-sampson

Need help with implementation? Drop us a line.

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