Managing taxes is one of the trickiest parts of running an online business. If you’re a Shopify seller, you know how stressful sales tax, VAT, and compliance can get. That’s where avalara shopify comes in, making tax automation effortless.
In this guide, we’ll break down what Avalara does, how it works with Shopify, and why so many sellers choose it.
Keynotes:
- Simplifies tax compliance.
- Cuts down human error.
- Works for global markets.
- Saves time for scaling your store.
- PlugBooks makes setup even easier.
Understanding Avalara and Shopify
When people talk about avalara and shopify, they’re usually referring to how Avalara helps sellers automate tax collection directly in their Shopify store. Instead of manually tracking rates across different states or countries, Avalara takes care of it instantly.

Why Avalara for Shopify is Worth It
If you’re wondering whether avalara for shopify is necessary, think about your growth. Selling in multiple states or internationally means different rules. Avalara automatically calculates the right tax rates at checkout so you can focus on growing sales instead of stressing over compliance. With PlugBooks Shopify bookkeeping, you can keep those tax records synced with your finances effortlessly.
Making Sense of Avalara Tax Compliance Shopify
Handling compliance isn’t just about charging taxes. It’s about filing correctly too. Avalara tax compliance shopify ensures the right forms and filings are submitted on time. For U.S. sellers, that means state-by-state reports.
For global sellers, it covers VAT and GST. Tools like PlugBooks order reports make it easy to keep track of these numbers.
Exploring the Avalara Shopify App
The avalara shopify app brings automation to your fingertips. Once installed, it updates tax rates, collects the right amounts, and even prepares filing documents. Sellers appreciate how it removes the guesswork from tax compliance.

Steps for Avalara Shopify Integration
Setting up avalara shopify integration may sound technical, but it’s straightforward. You connect your Shopify store, map products, and let Avalara handle rates and compliance. This saves hours you’d otherwise spend crunching numbers.
At PlugBooks, we’ve guided many Shopify sellers through this process. One client saw their monthly tax filings shrink from a week of stress into just a few hours, thanks to Avalara automation combined with PlugBooks bookkeeping support.
You can explore more about Shopify bookkeeping with PlugBooks for smoother workflows.
How Does Avalara Work with Shopify?
Many sellers ask, how does avalara work with shopify? Simply put, Avalara connects in the background, monitoring every sale. It knows the rules for each region and applies the correct tax automatically.
Can You Use Avalara on Shopify?
So, can you use avalara on shopify if you only sell locally? Yes, and it’s still helpful. Even for small businesses, it ensures compliance and saves time.

Avalara vs Shopify Taxes
There’s often confusion between built-in Shopify taxes and Avalara. The avalara vs shopify taxes discussion comes down to scale. Shopify covers basics, but Avalara specializes in accuracy across complex jurisdictions.
👉 For more insights, see Shopify Processing Fees.
Setting Up Avalara in Shopify
When it comes to setting up avalara in shopify, the process is user-friendly. You install the app, choose your tax settings, and Avalara syncs with your sales.
Do I Need Avalara for Shopify?
A common question is, do i need avalara for shopify? If you’re a small local seller, maybe not. But if you’re growing, expanding internationally, or filing in multiple states, Avalara becomes essential.
Does Avalara Integrate with Shopify Seamlessly?
The answer is yes — does avalara integrate with shopify is a question many sellers ask, and the integration works smoothly. The app keeps everything in sync without extra effort.
Personal Experience with Avalara Shopify
I once managed a Shopify store that expanded into multiple states. Before Avalara, taxes were overwhelming. After setting up avalara shopify, everything changed. The system automatically applied the right rates, and filing deadlines were no longer stressful. It felt like having a personal tax assistant.
👉 Learn more in our guide on Shopify Bookkeeping.
PlugBooks Experience with Avalara and Shopify
At PlugBooks, we’ve worked with countless Shopify sellers who struggled with tax compliance before automation. One client in particular was selling across the U.S. and Europe but couldn’t keep up with different VAT and state rules.

After connecting avalara shopify integration with their store and syncing it into QuickBooks through PlugBooks, their monthly tax process went from days of manual work to just a few clicks. The client finally had peace of mind, knowing both compliance and bookkeeping were handled seamlessly.
👉 Discover more about PlugBooks Shopify Integration.
How PlugBooks Helps with Shopify and Avalara
Even with Avalara, many sellers still need bookkeeping and accounting support. That’s where PlugBooks steps in. We help Shopify sellers connect Avalara with QuickBooks or Xero, ensuring tax data flows seamlessly into your accounts.
With PlugBooks, you’re not just compliant — you’re organized, confident, and focused on growth.
FAQs
Q1: Does Avalara integrate with Shopify natively?
Yes, the app is designed to work directly with Shopify for smooth setup.
Q2: How does Avalara handle international taxes?
It manages VAT, GST, and other rules for global sellers.
Q3: Can I use Avalara only for U.S. sales tax?
Absolutely, and it works well for state-by-state compliance.
Q4: Is the Avalara Shopify app free?
The app may have additional costs depending on your plan.
Q5: Do I still need a bookkeeper with Avalara?
Yes, because bookkeeping covers more than tax automation. PlugBooks bridges that gap.
Q6: How does PlugBooks help Shopify sellers?
We provide integration support, bookkeeping, and tax compliance services tailored to e-commerce sellers.
