Aug 14, 2024 • 5 minute read
Avalara Ending Returns for Small Business
Avalara will retire their Returns for Small Business (RSB) program by December 31, 2024, pushing customers to switch products or providers. If you're unsure about your options at renewal, we can help you find cost-effective alternatives.

Using Avalara Returns for Small Business (RSB)? Consider This Alternative

Avalara announced in February, 2024 that they were retiring their Avalara Returns for Small Business (RSB) program by December 31, 2024. However, customers will lose access to the product throughout 2024 since Avalara is retiring Returns for Small Business by requiring customers choose another Avalara small business product when the renewal date comes up – or transfer to a different provider.

Returns for Small Business

The retirement of Avalara Returns for Small Business is another indication that Avalara is shifting away from supporting small businesses to focus on better serving larger enterprise clients and more hands-on services like their Managed Returns.

Unsure what to do when your RSB renewal date comes up? We’ll help you understand your options – and suggest a cost-efficient alternative to Avalara that’s similar to Avalara Returns for Small Business.

What is Avalara Returns for Small Business?

Avalara Returns for Small Business was a flexible and affordable tax compliance solution that helped small businesses with their sales tax compliance. The software automated the process of creating signature-ready sales tax returns for multiple states but did not file returns or calculate sales tax without additional Avalara services. Avalara Returns for Small Business cost $245 for an annual subscription and $25 per return.

RSB features:

  • Integrated with major ecommerce sites to pull sales data
  • Tracked economic nexus to notify businesses about nexus obligations
  • Created signature-ready returns that businesses simply had to review, edit, and file

Why is Avalara Returns for Small Business being retired?

Avalara seems to have decided to retire the Returns for Small Business product as part of a broader shift away from providing affordable sales tax compliance solutions to small business and towards focusing on larger businesses or more expensive managed services like Avalara’s Managed Returns Service (MRS) and DAVO by Avalara. They will no longer be offering any products that provide signature-ready return but will be exclusively providing more expensive hands-on filing help.

Avalara is likely hoping that many of their existing customers migrate to the more expensive Avalara Managed Returns Service or DAVO by Avalara services so they can make more money per customer. However, while Avalara is recommending that customers migrate to these products, it’s not clear how long they will be supported.

Current customers can find out when they’re up for renewal by signing into their account, going to the Accounts tab and selecting Products and usage. Once there, they can click the Overview tab for information on their subscription’s end date. Avalara recommends downloading your data prior to the termination of your RSB contract. However, Avalara will keep your data for 60 days after your data for 60 days after your contract ends and will provide you your data via Avalara’s customer support if you require it.

What can Avalara small business customers do?

Avalara gives Returns for Small Business customers three options:

  1. Avalara’s Managed Returns Service: This is a managed return service where Avalara files your tax returns for you.
  2. DAVO by Avalara: This is a managed return service specifically for businesses using point-of-sales software like Square to manage their sales tax calculations.
  3. A non-Avalara returns solution: Small business customers looking for Avalara alternatives can choose from sales tax compliance solutions like TaxCloud as an alternative to Avalara.

Customers must choose a new solution and migrate their sales tax software before their Returns for Small Business contract end date or they risk losing their data.

Returns for Small Business: Avalara Alternative

If you’re looking for an Avalara alternative for Returns for Small Business, consider TaxCloud. An end-to-end solution for sales tax compliance, TaxCloud could also replace your current sales tax calculation program – all for less than you paid for Avalara Returns for Small Business. TaxCloud starts at just $199 a year for unlimited signature-ready returns!

Avalara RSB Avalara Managed Returns Avalara DAVO TaxCloud Starter TaxCloud Premium
Cost (annual invoicing) $249/year $$$$ $659.88/year $199/year $799/year
Cost: Signature-ready returns cost $25/return N/A N/A Included Included
Cost: Return filing N/A $42-$54/filing Included $39/filing $39/filing $599/nationwide

Key Features

Avalara RSB Avalara Managed Returns Avalara DAVO TaxCloud Starter TaxCloud Premium
Product tax code catalog
Exemption certificates
Address verification API
Economic nexus checker
Economic nexus notifications
Nationwide audit support $599/month
Streamlined Sales Tax (STT) discounts
Transaction detail reports
Jurisdiction-level reports
CSV import
Email support
Phone support
Chat support

Why TaxCloud?

Sales tax calculation – for less than Returns for Small Business

Why pay for sales tax calculation and signature-ready returns separately when TaxCloud gives you both for less than you were paying for help with just sales tax filings from Avalara Returns for Small Business? TaxCloud’s Government Affairs team monitors tax changes across all 13,000+ tax jurisdictions in the US, so you don’t have to.

Cost savings with the Streamlined Sales Tax Program™

TaxCloud is a Certified Service Provider for the Streamlined Sales Tax (SST) program. Designed to help businesses streamline the collection and administration of sales and use taxes while selling to states where they lack a physical presence, TaxCloud can help with sales tax registration, sales tax calculation, and filings in all STT member states at no extra charge

Chat and phone support on all tiers

TaxCloud US-based customer support team

TaxCloud’s US-based customer support team – made up of actual human beings – are available and excited to help you get started with TaxCloud and explain the minutiae of sales and use tax.

What you get with TaxCloud

Simplify your sales tax management

Unlike with Avalara where you need different solutions for your sales tax calculation and filing, TaxCloud seamlessly manages your end-to-end sales tax compliance all in one dashboard. We offer:

  • Real-time computation of sales and use tax across 13,000 U.S. tax jurisdictions
  • Prompt notifications when nexus obligations arise
  • Up to date information about tax exemptions and sales tax holidays
  • Fast and efficient analysis of sales tax order data
  • Support with audit processes.

Real-Time Sales Tax Integrations

TaxCloud offers a wide selection of sales tax integrations for e-commerce, ERP, CRM, and accounting systems, including real-time interfacing with platforms like Odoo, BigCommerce, WooCommerce, and Magento (formerly Adobe Commerce). Developed either in-house or by one of our partners, we stand behind the reliability of our integrations.

Sales tax collection made easy

Just like with Avalara Returns for Small Business, TaxCloud gives you economic nexus notifications so you always know where you should be collecting taxes and how close you are to nexus thresholds in different states.

Automatic sales tax filing and compliance

If you don’t need a managed returns filing service, you don’t need to switch to one. TaxCloud offers signature-ready sales tax returns with both our Starter and Premium plans just like RSB did. Want more hands-on support but think Avalara Managed Returns is too expensive? Our managed returns service costs just $39 per state or $599 for nationwide filing.

Changing sales tax providers is easy with TaxCloud

If you are affected by the retirement of Returns for Small Business (RSB) and Avalara is pushing you to migrate to a much more expensive plan, give TaxCloud a call.

Switching to TaxCloud is simple and much cheaper than other Avalara products. Contact us.

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