Avalara for WooCommerce is built for enterprises, not midsize sellers

Avalara’s WooCommerce plugin promises to simplify sales tax compliance, but most SMBs and midsize sellers discover the opposite: unclear pricing, delayed responses from support, and ongoing technical headaches.

For sellers without enterprise resources, it creates more friction than it solves, and they wind up looking for a better Avalara alternative.

This guide breaks down exactly how Avalara’s WooCommerce plugin works, where it helps, where it falls short, and why TaxCloud is the better more affordable choice for sellers who want transparent pricing, responsive U.S.-based support, and built-in SST filing — without the enterprise baggage.

How does Avalara work with WooCommerce?

Avalara integrates with WooCommerce through the Avalara for WooCommerce plugin (link: woocommerce.com/products/woocommerce-avatax), which calculates sales tax at checkout. But getting started isn’t as simple as installing the plugin.

Getting started typically involves:

• Creating an AvaTax account via Avalara’s sales team
• Installing the Avalara for WooCommerce plugin on your site
• Entering your company code and license key
• Manually configuring settings

Once your Avalara account is connected, AvaTax pulls product and customer data from your WooCommerce store and calculates sales tax in real time. It uses geolocation to determine the correct tax rate by jurisdiction and applies rules based on item type, exemptions, and more.

But here’s what often surprises sellers:

• Filing isn’t included. AvaTax handles calculation and reporting, but to file and remit taxes, you’ll need to subscribe to Avalara Returns, a separate product with its own pricing.
• Manual setup and developer input is commonly required. Many WooCommerce sellers report needing developer help to get the plugin working smoothly — especially when syncing across platforms or enabling multiple online store views.
• Variable products need extra work. Avalara can calculate tax on variable products (like different sizes or colors), but only if you’ve manually mapped each variation to the correct tax code. Missing that step is a common source of errors.
• International tax adds complexity. AvaTax does support VAT and other global taxes, but configuration gets complex fast.

What Avalara gets right in WooCommerce

The Avalara WooCommerce plugin connects directly to AvaTax, offering a powerful toolset for sales tax calculation.

Some standout capabilities include:

• Real-time tax calculation across U.S. jurisdictions using product type, customer location, and exemption rules.
• Exemption certificate support, available via the Avalara Exemption Certificate Management (ECM), which is a separate product with separate pricing.
• Address-level accuracy using geolocation and ZIP+4 mapping.
• Recurring order support for products for WooCommerce Subscriptions, but watch for compatibility issues. It is supported in version 1.4.1+ of the plugin.
• Nexus tracking and alerts to help businesses monitor where they may owe tax. However, if you need a more in-depth nexus analysis, it may be necessary to invest in Avalara’s Sales Tax Risk Assessment product.
• Support for international tax types (e.g., VAT), though setup can be complex and additional add-ons may be needed for more advanced cross-border and e-invoicing mandates.
• Integration with enterprise tools like SAP, Oracle, and NetSuite, but this requires separate Avalara connectors or integrations.

These features make Avalara a strong option for larger ecommerce teams that need robust calculation logic across multiple jurisdictions.

Where Avalara falls short for WooCommerce sellers

Avalara’s WooCommerce plugin handles tax calculation, but sellers still run into friction, complexity, and surprise costs. Here’s where merchants get stuck.

1. Opaque, add-on pricing

Avalara doesn’t list its pricing publicly. You’ll need to request a quote, and many users discover that basic features — like filing, support, and exemption management — require paid add-ons. Surprise fees, such as activation, late payment, or reactivation charges, are common and should be considered additional costs.

Read our full breakdown of Avalara pricing.

2. Manual setup and support gaps

Getting the plugin to work properly often requires the assistance of a developer, especially for cross-platform syncs or multi-store setup and management. For merchants that lack the internal operations needed, this can be a problem. Getting fast help when you need it is another issue. The standard support plan doesn’t include phone support to easily contact Avalara’s customer service team. Most users are routed through slow ticket systems or chat.

3. Too complex for lean teams

Avalara is for enterprise-level operations with in-house operations and dedicated tax teams. Most WooCommerce merchants don’t have that kind of internal muscle, leaving the plugin overbuilt and more of a burden than a benefit.

4. Filing not included

Avalara’s WooCommerce plugin only calculates tax. To actually file and remit, merchants are pushed into a paid Avalara Returns subscription. This is another layer of cost and setup that most sellers don’t expect.

5. History of product instability

Avalara has a track record of sunsetting products for smaller merchants. If you rely on Avalara for WooCommerce, ask yourself if you’ll be next. Looking at Avalara’s track record, there’s a clear trend: the company prioritizes enterprise clients over plugin-based users. In recent years:

• Avalara sunset the Avalara Returns for Small Business program (2024)
• Avalara discontinued the API-only pricing tier for BigCommerce sellers (2025)
• Shopify deprecated the legacy AvaTax app, forcing merchants to migrate (2025)

These shifts have left smaller merchants scrambling.

See what real users are saying in our Avalara reviews roundup.

What to look for in a WooCommerce sales tax plugin

If Avalara left you feeling overwhelmed or overcharged, you’re not alone. When choosing a better fit, here’s what actually matters:

• End-to-end automation. Calculation alone won’t cut it. Look for a plugin that also handles filing, exemption certificates for exempt sales, and nexus tracking — without five different upsells.
• No-surprise pricing. Predictability matters. You should know exactly what you’ll pay each month, without needing a sales call or decoder ring.
• SST program participation. Turn to a solution that is a Streamline Sales Tax (SST) certified service provider to save yourself time and money on state registration and filing across 24 member states.
• WooCommerce-native integration. Forget spreadsheets or Zapier workarounds. Choose a sales tax tool built specifically for WooCommerce that installs in minutes.
• Responsive support. You shouldn’t need an enterprise plan to talk to a human. Prioritize platforms with fast, reliable U.S.-based support.

Once you know what to look for, the better alternative becomes obvious.

Why growing WooCommerce sellers choose TaxCloud

TaxCloud was built for SMB and mid-market WooCommerce sellers, not enterprise teams.

That means you get everything you need for multi-state compliance without Avalara’s pricing surprises or support gaps.

• Real-time calculations + automated filing. Stay compliant in all 50 states with real-time tax rates and hands-off filing, backed by audit-ready reports.
• Transparent pricing. No setup fees. No per-order pricing. Just simple plans you can see upfront, online.
• Streamlined Sales Tax (SST) program. Like Avalara, TaxCloud is a Certified Service Provider (CSP) for the SST program. We guide you through the application process and, once approved, manage registration and ongoing filing in 24 participating states — with those services covered by the program at no additional cost.
• Built for WooCommerce. TaxCloud’s native WooCommerce plugin is listed in the official WooCommerce marketplace — reviewed and approved by the WooCommerce team. Because WooCommerce and WordPress are part of the same ecosystem, the plugin can also be installed directly on WordPress sites, making setup seamless. Installation is simple, requires no developer assistance, and allows businesses to get up and running quickly..
• U.S.-based support you can easily reach. Unlike Avalara, TaxCloud doesn’t offshore its customer service. All onboarding, success, and support teams are U.S.-based and focused exclusively on sales tax. When questions come up, you’ll connect with real people — not bots or outsourced call centers — for faster, clearer answers.

Avalara for WooCommerce vs. TaxCloud for WooCommerce

Avalara for WooCommerce is a plugin that connects your store to Avalara’s broader AvaTax and Returns products. While it offers strong calculation features, most essential functions — like filing and exemption management — require separate subscriptions.

Here’s how it compares to TaxCloud’s all-in-one WooCommerce solution.

Want a more detailed comparison? Check out our full TaxCloud vs. Avalara guide.

Avalara vs. TaxCloud: built for enterprise vs built for SMBs and growing sellers

Avalara serves very large enterprises — their own homepage highlights customers like Netflix, Pinterest, and Adidas. This reflects the scale of the businesses they’re built around: global corporations with massive compliance teams and budgets.

TaxCloud is purpose-built for SMBs and growing WooCommerce sellers who want straightforward, automated tax compliance. With transparent pricing, SST program support, and responsive U.S.-based help, TaxCloud is the right fit — without the enterprise overhead.

Don’t waste time on tools that weren’t designed for your business, despite money-back guarantees.

Try TaxCloud for WooCommerce today and get up and running in minutes. Talk to Sales.

Frequently Asked Questions

Who is the Avalara WooCommerce Plugin best suited for?

Avalara’s WooCommerce plugin and setup is best suited for larger ecommerce teams with internal operations or tax staff who can manage the integration, configuration, and ongoing support needs. Smaller shops, or those that lack the internal resources needed, often find Avalara to be too complex and the high cost difficult to justify.

How much does Avalara cost?

Avalara doesn’t publish its pricing, but we’ve put together a guide that breaks down estimated costs based on public data and customer reports — so you know what to expect.

How does Avalara work with WooCommerce?

Avalara integrates with WooCommerce through the AvaTax plugin, which handles calculation and reporting. However, filing and remittance, as well as exemption certificate support, are not included and must be purchased as separate products. Setup can be complex, often requiring developer help.

Does Avalara handle sales tax filing automatically?

No. Avalara calculates sales tax in real time, but that’s where it stops. If you want Avalara to handle sales tax filing automatically, you need to subscribe to Avalara Returns, which is a separate paid product.

Is Avalara a good choice for small merchants?

Not usually. Avalara is built for enterprise-level operations with in-house operations and dedicated tax teams. Most WooCommerce merchants don’t have those internal resources. For many small merchants, the plugin is overkill and more of a burden than a benefit.

Is there a simpler alternative to Avalara?

Yes. TaxCloud is designed for growing, multi-state WooCommerce sellers that want transparent pricing and automated sales tax compliance. It offers real-time calculations, automated filing, and SST state coverage all in one plugin, without the need for multiple add-ons.