A Complete Comparison of Avalara and Vertex
Currently using Vertex or Avalara but feeling like there might be a better option out there? Or perhaps you’re just starting the process of choosing between the two? Whether you’re dissatisfied with Avalara’s pricing and support or seeking a cheaper alternative with more features than Vertex, we’re here to help!
We’ll conduct a thorough comparison of Avalara vs Vertex – examining their features, pricing, support, pros, cons, and reviews. On top of that, we’ll compare both solutions to TaxCloud, one of the top Avalara alternatives known for its industry-leading features, support, and pricing.
Let’s begin the comparison!
Overview: Avalara vs. Vertex vs. TaxCloud
What is Avalara?
Avalara is a publicly traded company that debuted on the stock market in 2018. It specializes in providing cloud-based solutions for sales tax compliance.
Overview:
- 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
What is Vertex?
Vertex is a tax technology company that provides various tax solutions to help users with sales tax compliance.
Overview:
- 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, monitoring nexus thresholds, and filing and remitting sales taxes
Vertex Products:
| Product | Description |
| Vertex O Series | Automate and centralize sales, use, and value added tax (VAT) management. |
| Vertex e-Invoicing | A solution for real-time reporting and e-invoicing. |
| Vertex VAT Compliance | Automate VAT/GST filings and returns. |
| Vertex O Series Edge | Calculate sales tax at the transaction with edge computing. |
| Vertex Accelerator+ for SAP ERP | Global sales tax management for our SAP ERP. |
| Vertex SUP Compliance Service | End-to-end sales and use tax compliance support. |
| Vertex Certificate Center | Streamlined exemption certificate management. |
| Vertex Data Integrity | Data validation, analysis, and transformation for taxes. |
| Vertex Indirect Tax for Omnichannel Retail | Automated tax solution for omnichannel retailers. |
| Vertex for Marketplaces | Automated VAT/GST management for marketplaces. |
| Taxamo Assure by Vertex | Management of VAT/GST for e-commerce transactions. |
| Vertex for e-Commerce | Automated global tax determination and compliance. |
| Vertex Advantage PLUS | VAT/GST filing and remittance service for e-commerce. |
| Vertex PLUS Tools | Tax management optimization for SAP ERP. |
| Vertex Invoice IQ | API-based tax-compliant global invoicing support. |
| Vertex Validator | API-based solution for validation of business tax IDs. |
| Vertex Accelerator for Oracle Cloud ERP | Tax management for Oracle Cloud ERP. |
| Vertex Indirect Tax Returns – North America | Signature-ready returns and automated tax compliance. |
| Vertex Indirect Tax Intelligence | Data intelligence in support of tax performance. |
| Vertex O Series Latitude/Longitude Jurisdiction Locator | Longitude and latitude coordinates to improve tax accuracy. |
| Vertex O Series Address Cleansing | Precise addresses for improved tax accuracy. |
| System DFE | Automated management and validation off accounts payable invoices in Brazil. |
| Vertex Payroll Tax | Payroll tax calculation solution for HCM and Staffing applications. |
| Vertex Payroll Tax Address Cleansing | Automated tax address automation for payroll. |
What is TaxCloud?
Established in 2008, TaxCloud boasts over 16 years of sales tax compliance expertise. TaxCloud offers services that help you calculate, collect, and file your sales tax with ease and 100% accuracy.
Overview:
- Automates the entire sales tax compliance process, including nexus monitoring, calculation, return preparation, remittance, audit defense, and more
- Manages sales tax rate calculations across 13,000+ US jurisdictions
- Offers industry-leading U.S.-based customer support through live agents via phone, email, and chat
- Caters to small and medium-sized businesses operating in the US, including SaaS
- Offers affordable pricing
Features: Vertex vs. Avalara vs. Taxcloud
Let’s start by comparing these sales tax management software solutions on the basis of their features! Here’s a chart to help you compare the features offered by Vertex, Avalara, and TaxCloud.
Key Features
| TaxCloud Starter | Vertex | Avalara AvaTax | TaxCloud Premium | |
|---|---|---|---|---|
| Sales tax calculation engine | ✓ | ✓ | ✓ | ✓ |
| Automate sales tax filing | ✓ | ✓ | ✓ | ✓ |
| Filing audit support | ✓ | |||
| Streamlined Sales Tax (STT) Program | ✓ | ✓ | ||
| Exemption certificates | ✓ | ✓ | ✓ | ✓ |
| Address verification API | ✓ | ✓ | ✓ | |
| API access and reports | ✓ | ✓ | ✓ | |
| Email support | ✓ | ✓ | ✓ | ✓ |
| Phone support | ✓ | ✓ | ✓ | ✓ |
| Chat support | ✓ | ✓ | ✓ |
Winner: TaxCloud Premium has more features and functionality than Avalara and Vertex – including important things like more support options so you can get help in however works best for you. What’s more, TaxCloud is the cheaper option so you get Avalara features at a lower price point.
Pricing: Avalara vs. Vertex vs. TaxCloud
What about pricing? Which sales tax management software provides the most value? Here’s a chart breaking down TaxCloud vs. Vertex vs. Avalara pricing.
| TaxCloud Starter | Vertex | Avalara AvaTax | TaxCloud Premium | |
|---|---|---|---|---|
| Cost (annual invoicing) | $19/month | $0.12 – $0.14 per order for calculation alone | $$$$ Volume and feature-based pricing | $79/month |
| Exemption certificate support | Included | $1,200/year | $$$$ | Included |
| Setup fee | ✓ | |||
| Orders included | 100/month | None | None | 200/month |
| Lock-in required | ✓ |
Winner: TaxCloud doesn’t just offer more services included in the price, we also have lower prices. We also don’t have a costly set-up fee like Avalara.
Vertex vs. TaxCloud order-based pricing
Here’s what it really looks like when you compare TaxCloud and Vertex on a per-order basis.
Remember to add $1,200 to the Vertex price if you need exemption certificate support.
| Orders | Vertex (paying annually) |
TaxCloud Starter (paying annually) |
TaxCloud Premium (paying annually) |
|---|---|---|---|
| 200 orders per month | $288-$360 | $299 | $799 |
| 400 orders per month | $576-$720 | $499 | $1,499 |
| 1,000 orders per month | $1,440-$1,800 | $899 | $2,999 |
| 2,000 orders per month | $2,800-$3,600 | $1,299 | $3,999 |
| 4,000 orders per month | $5,760-$7,200 | $1,799 | $5,499 |
| 10,000 orders per month | $14,400-$18,000 | $2,499 | $7,499 |
Winner: TaxCloud Starter is much cheaper and offers more included services than Vertex. TaxCloud Premium, which offers even more services, is also cheaper than Vertex’s tax calculation product alone once businesses have over 2,000 orders per month.
Support: Avalara vs. Vertex vs. TaxCloud
Sales tax compliance is critical for every business. Relying on software for something that could cost your company a significant amount of money if done wrong requires a lot of trust. If something goes wrong or just to get your software set up, you’ll want to talk to someone quickly.
So, how do these companies compare around customer support?
Here’s what they offer:
| Vertex | Avalara AvaTax | TaxCloud Starter & Premium | |
|---|---|---|---|
| Email support | ✓ | ✓ | ✓ |
| Phone support | ✓ | ✓ | ✓ |
| Chat support | ✓ | ✓ |
Winner: While TaxCloud and Avalara both offer a number of ways to get in touch when you need help, Avalara does not offer all those options to all their customers in their plan.
TaxCloud wins because we offer instant support from real humans to all customers.
Reviews: Vertex vs. Avalara vs. TaxCloud
Your reputation is built on the trust of your customers – and ecommerce businesses adopting sales tax management software have complex needs. Rather than choosing a sales tax management solution, investing significant time in its setup, and then discovering it’s not what you expected, it’s important to read user reviews in advance so you know what you’re buying.
Here’s what customers are saying about these companies:
Avalara
Although many Avalara customers are satisfied with the AvaTax platform, there are some common themes that customers voice in Avalara reviews.
| Category | Review Excerpt |
| Cost | “High cost. No benefit. Avalara only files what you file with them. This is useless service at a high cost. Just file your tax yourself as they do nothing unless you file the income and tax with them first.” |
| Customer support | “The customer support. We’re multiple months into having the same type of order’s tax miscalculated and I’m still fighting to get any help on it, meaning hundreds of orders are being charged incorrect sales tax.” |
| Issues with tax calculation | “I discovered that all my returns for the last three quarters of 2023 had been filed with a $0 sales tax liability. They had deducted ALL of my sales as non-taxable. Not only did I have to go back and amend over 50 tax returns, I owed thousands in penalties and late fees.” |
| Inaccurate rates | “The accuracy of the tax rates is questionable to the point of us having to double check rates on state websites to verify that the correct tax rate is being charged. We were also unable to successfully integrate Avalara with QuickBooks.” |
Vertex
While Vertex is a great solution for some businesses, the company’s online reviews have a few recurring complaints. Here are some common themes in Vertex reviews.
| Category | Review Excerpt |
| Cost | “The cost of the software is pretty immense since you’re pretty much renting a server.” |
| Customer support | “I wish that there was a better resource at Vertex for navigating solutions in O’Series, when it comes to resolving issues we discover along the way. Navigating the ticketing system and the various emails back and forth (only to get a mediocre answer) is quite discouraging.” |
| Cumbersome exemption process | “The processing time to save a customer exemption certificate is excessive. Heavy users of this application will find this very frustrating.” |
| Difficulty onboarding | “It took a very long time to get the bugs worked out after we started to use the program.” |
| Difficult to use | “The interface is not intuitive or user friendly.” |
TaxCloud
Wondering why TaxCloud is loved by our 2,000+ customers? Read the TaxCloud reviews below to get a better idea!
| Category | Review Excerpt |
| Pricing | “Extremely cost efficient scalable sales tax processing and reporting that eliminated all burdensome sales tax matters. Sales tax is now easy.” |
| Support | “It’s easy to talk to the same people any time you have an issue, and not be bounced around through different employees.” |
| Ease of integration | “TaxCloud is perfect for those who have very little technical skills or low skills in accounting. This software will assist in reports and calculations for you.” |
| Reduction in staff time | “TaxCloud has made the collection and paying of sales tax a smooth running process that takes only limited staff time to manage.” |
| Simplifies tax compliance | “Taxcloud makes staying in compliance easy, we have multiple tax codes for Washington state and we don’t have to worry about figuring out how to make it work.” |
Shopify Integration: Vertex vs. Avalara vs. TaxCloud
All three companies have official Shopify sales tax apps. Since Shopify is one of the most used ecommerce platforms, let’s explore which company offers the best Shopify sales tax app.
Vertex
Vertex is an official Shopify partner that offers sales tax software that can be integrated into your Shopify store.
Vertex’s Shopify app offers:
- Economic nexus notifications
- Global sales tax and VAT calculation
- Certificate management for vendors
- Global sales tax filing
- Global sales tax remittance
- Tax reports and analytics
- Product classification
- Integrations with ecommerce platforms, ERPs, and accounting software including WooCommerce, BigCommerce, Amazon, QuickBooks, Stripe, and more.
Downsides:
- Global support might not be needed
- Some services aren’t included in product packages or are extra
- No audit support
- No Streamlined Sales Tax discounts
- No pricing transparency – don’t list prices online
- Services are expensive and many features come at an additional cost
Avalara
TaxCloud
TaxCloud offers the most comprehensive Shopify sales tax solution with industry leading support and pricing.
TaxCloud’s Shopify app offers:
- Automated order importing into TaxCloud
- Economic nexus reporting and alerts
- State registration for sales tax
- Sales tax calculation
- Automated sales tax filing
- Automated sales tax remittance
- Audit support
- Streamlined Sales Tax support
- Exemption certificate support
- Comprehensive sales tax reports
- Email, phone and chat support
- Integrations with other platforms, payment providers, and accounting software including WooCommerce, BigCommerce, Stripe, Odoo, QuickBooks Online, QuickBooks Desktop, and more.
- Flexible API for custom integrations
Winner: TaxCloud is the most comprehensive solution for sales tax compliance for Shopify stores – and also offers industry-leading customer service and pricing.
Verdict: Vertex vs. Avalara vs. TaxCloud
Now that we’ve looked at the features, pricing, support, pros, cons, and reviews of competitors Vertex, Avalara, and TaxCloud – who won overall?
TaxCloud wins all categories:
- Features: TaxCloud – Get more features than both Avalara and Vertex.
- Pricing: TaxCloud – Enjoy significant savings over both Avalara and Vertex.
- Support: TaxCloud – All customers get three channels of support!
- Reviews: TaxCloud – Our customers love our software and service!
- Shopify: TaxCloud – We offer the most comprehensive app.