How to switch from Avalara

INTRODUCTION AND EXPECTATIONS

Switching from Avalara to TaxCloud can feel like untangling years of sales tax processes and systems, especially if you’ve never changed providers before. It’s a process that requires clarity, planning, and careful coordination.

Fortunately, you don’t have to make the switch alone!

Our onboarding team can talk you through the process required to move your filings and tax calculations from Avalara into the TaxCloud ecosystem.

This guide is built specifically for users transitioning from Avalara to TaxCloud.

Inside, we’ll break down every step of the migration process — as well as what you should avoid — so that you’ll always know what to do next.

How to switch from Avalara to TaxCloud

The thought of changing tax providers can be overwhelming, especially if you aren’t sure where to start. Breaking the process into clear steps makes everything more manageable.

Ultimately, the goal is to avoid gaps in data, missing files, or overlapping responsibilities during the transition.

Here’s a simple framework to guide your transition:

1. Plan your transition timeline and select a cutover date — the date when service with Avalara will stop and service with TaxCloud will begin.
2. Export all data from Avalara (including returns and transition history) before losing access to the account.
3. Confirm final filing dates with Avalara and start dates with TaxCloud to avoid filing overlap or missed returns.
4. Set up your TaxCloud account and import historical data.
5. Map product tax codes to TaxCloud TICs.
6. Test tax calculations across various products and jurisdictions to make sure that TaxCloud’s engine is calculating details correctly.
7. For Streamlined Sales Tax (SST) users: Separate Avalara from your account. Doing so will remove Avalara’s ability to file as your Certified Service Providers (CSP) within the SST portal.
8. Go live with TaxCloud, revoke Avalara’s access to any existing tax portals, and configure TaxCloud as your new CSP for SST filings.

As we’ll discuss in later sections, having a clear plan of action and plenty of advanced notice is the best way forward. TaxCloud’s onboarding specialists can guide new users through most aspects of the changeover.

Preparing for the switch

Before you leave Avalara, it’s important to lay the groundwork for a smooth transition. Failure to do so can lead to gaps in coverage and a loss of historical data that you’ll need to get up and running with your new TaxCloud account.

This section outlines the key steps to take before cancelling your Avalara account. Some of these tasks can be handled internally while others can be coordinated with TaxCloud’s onboarding team.

Ending service with Avalara

Before any technical setup begins, it’s important to formally plan how and when you’ll end your relationship with Avalara.

Timing is critical because Avalara, like many providers, doesn’t allow users with expired contracts to access data stored on their accounts. Because of this restriction, you’ll need to gather all the data from the platform before your contract expires.

At TaxCloud, you’ll also need some time to set up your new account. During this process, our onboarding team can show you how to use the information from Avalara to configure your settings, account preferences, and automations while also using your historical transaction data to ensure that future filings are accurate.

If these details aren’t finalized up front, you risk duplicate filings, missed returns, or continued billing from Avalara even after you’ve fully switched to TaxCloud!

Here’s what you’ll need to do:

1. Review your Avalara contract and confirm your cancellation date. Make sure you have a good understanding of your contract terms — including any required notice period — to avoid surprise billing or unexpected service extensions.
2. Choose a transition window that avoids filing deadlines. Returns are filed after the close of a reporting period. For example, February transactions are typically filed in March. Plan your cancellation so Avalara can complete all filings before your account closes.
3. Notify internal stakeholders of the upcoming change. Filing responsibilities may shift between teams during the transition. Make sure your accounting, operations, and leadership teams are aligned on obligations and timelines.
4. Contact TaxCloud 30-60 days before your cutover. This allows time for our onboarding team to prepare your account, coordinate filings, and support a smooth transition away from Avalara.

Leaving at the end of the contract period makes the most sense for the majority of businesses, but it shouldn’t be an impulse decision. By getting in touch with our team early and letting us know your intent to switch, we’ll have more time to help you migrate across platforms without interruptions or unexpected curveballs.

Coordinating your filing obligations

Once you’ve selected your cancellation date and informed your team, you’ll need to clearly define which provider is responsible for your filings during the transition period.

Like TaxCloud, Avalara can file through the Streamlined Sales Tax (SST) program, so they may be filing on your behalf in two separate capacities:

• As your Certified Service Provider (CSP) through the SST program.
• Through direct filing services available in non-SST states.

Each path requires slightly different steps to resolve, and it’s important to get them right to avoid missed or duplicate filings.

For clarity, here’s a breakdown of the states covered under SST:

Let’s look at each approach separately.

SST Accounts

If Avalara is currently acting as your CSP under the Streamlined Sales Tax program, you’ll need to request that they file your final SST returns and then formally separate from your SST account.

Once you inform Avalara that you’re transitioning to a different provider, they’ll typically offer three paths forward:

In order for TaxCloud to take over your SST filings, you’ll choose to remove Avalara as your CSP (Option 3) while continuing your registration with the SST program. After Avalara files your final returns, they should initiate separation from your SST account without removing or closing your registrations.

In order to make sure that Avalara fully understands your request to separate without de-registering your business, we’d recommend phrasing your request like this:

This is a critical step in the closure process, because SST accounts can only have one registered CSP at a time. In order for TaxCloud to operate as your CSP, Avalara must be removed from your SST account.

You’ll also need to save your SST ID number. Our onboarding team will need this number to request CSP access and begin filing on your behalf.

Your SST ID will begin with “S” followed by several numbers. (Example: S00123456.)

Non-SST states

If Avalara is also filing for your outside of the SST program, it’s essential to carefully define your last filing period with them. Because of how filing periods and schedules work, it’s easy for these directions to be misunderstood.

When coordinating with Avalara, be specific about your filing dates and periods so that it’s clear what paperwork should be completed by their team and when they should stop their filing processes.

During these discussions, make sure that your instructions align with your cancellation date. This way, Avalara will stop filing on a set date and TaxCloud can pick up where they left off.

To prevent confusion, we recommend phrasing the request like this:

Once the handoff is complete, our team will work with you to remove Avalara’s access to your state portals (where possible), so that no additional filings are submitted after your cancellation date.

As a final checklist for this section, confirm the following:

• Determine how Avalara is filing your taxes.
  • For the SST program, notify them that you’re switching providers and that you want the new provider to file your SST return. Remove Avalara as your CSP without having them close your SST account. (Option 3 in the table above.)
  • For non-SST states, confirm which returns Avalara will file and make sure your cancellation date aligns with your final filing dates.
• Save your SST ID number. TaxCloud will request this during onboarding to register as your new CSP.
• Confirm with TaxCloud when our team plans to take over filing on our behalf. Make sure this aligns with your exit from Avalara.

Data retention and importing

Before you leave Avalara, it’s essential to collect and preserve your tax data, transaction records, and any configuration details that you may need down the line.

Avalara typically restricts account access after your contract ends, which means you could lose valuable information unless you act ahead of time.

Keep in mind that you may have to wait until close to your contract end date to download your most recent records. If you export your data too early, you run the risk of missing the information accumulated during the final weeks or months before the switch.

What to download

1. Filed tax returns. Download and store copies of any returns filed through Avalara, including reported amounts. These are critical for audits and future reference.
2. Sales tax reports by state or jurisdiction. Export the reports used to prepare each return. These should include total tax collected and jurisdiction-level breakdowns.
3. Transaction-level sales data (last 12-24 months). Export detail transaction data to support nexus tracking, reporting, and historical context within TaxCloud.
4. Product tax code mappings. Export your Avalara tax codes. TaxCloud uses its own system (called TICs), and this data will help our team map products accurately during the onboarding process.
5. Customer exemption certificates. Download all exemption documentation. Without these, you’ll need to recollect certificates from tax exempt customers. Note that these documents may be stored in Avalara’s certificate management module and may be required to validate exemption status in the event of an audit.
6. States enabled for tax calculation. Take note of the states where Avalara was calculating sales tax. At TaxCloud, we can use this data to make sure that no states are missed during the changeover.

TaxCloud uses this data to configure your account, map products, and ensure accurate filing from day one. Providing historical data allows our engine to account for existing transaction activity and economic nexus thresholds, closing any potential gaps as the cutover takes place.

If historical data isn’t provided, TaxCloud can still track nexus and reporting but will do so without historical context. In this scenario, our platform will track nexus and reporting, but it will start from $0 and won’t be able to offer a full picture of your tax obligations.

Configuration and testing

Once your TaxCloud account is set up, we strongly recommend testing your tax calculations before going live.

While our team works closely with you during the onboarding process to configure your states, product codes, and exemptions, every sales channel is different. Miscalculations can happen if testing is skipped, leading to reporting discrepancies, incorrect tax calculations, and other problems down the road.

Here’s a closer look at testing methods we recommend:

1. Use a sandbox or staging store during setup. If your marketplace or e-commerce platform supports it, clone your store and run TaxCloud calculations in a test environment before going live. This is the safest and easiest way to catch issues without impacting live transactions.
2. Test across product types and shipping destinations. Confirm taxable, non-taxable, and reduced-rate products. Test shipping to multiple states to confirm that the correct rate and treatment applies.
3. Test tax-exempt scenarios. Place orders using tax-exempt accounts or certificates to make sure that exemption logic works properly.
4. Compare results to your Avalara data. If you have some time before your Avalara contract expires, or if your marketplace/e-commerce store allows two tax platforms to integrate simultaneously, compare transaction data side-by-side. Pay careful attention to line-item handling, rounding, and any special tax rules that might apply.
5. Validate edge cases. Discounts, drop shipping, bundles, and other complex scenarios are where errors are most likely to occur. Include these in your test suite, along with any other fringe cases or uncommon variables that are unique to your storefront operation.

Running these tests ahead of time helps you catch small configuration issues before they become bigger problems.

Testing shouldn’t interfere with your live storefront. If possible, use a sandbox or staging environment to avoid impacting real transactions. Especially if your website or marketplace storefront enjoys regular shoppers, switching engines in a live environment can lead to missed sales, misplaced transaction data, and a host of other issues. That’s why we always recommend sandbox-based solutions when they are available.

Once testing is complete and you’re confident in the results, you’re ready to make the switch. Our team will help you coordinate the go-live process, verify that tax is being calculated correctly in real time, and confirm that your setup is fully aligned before we begin filing returns on your behalf.

Mapping product tax codes

If you’ve previously assigned Avalara tax codes to your products, you’ll need to carry that logic over to TaxCloud before going live.

TaxCloud uses a classification system called TICs (Taxability Information Codes), which function similarly to Avalara’s tax codes. While the systems don’t share a one-to-one mapping function, we’ll work with you to align your catalog with the appropriate TICs to ensure product-level taxability is preserved in all states.

While taxability codes are critical to calculating accurate tax in a given jurisdiction, configuring the system can be a hassle.

Here are some of the best ways to approach this during the migration:

Accurate product mapping is critical to correct tax calculation. Even small errors can result in over-or under-collection across different states.

Our onboarding team will walk you through this process in detail. We can even assist in bulk mapping if you provide a copy of your product catalog early in the setup process.

Common pitfalls to avoid

Even well-planned migrations can run into issues when crucial steps and details are missed.

In this section, we’ll tackle some of the most common mistakes that organizations make when switching sales tax providers.

While preparing for the transition, take careful note of the errors in this section. Be sure to keep them top-of-mind as the migration takes place.

Losing access to Avalara data

Avalara doesn’t allow users to access their accounts after contract expiration.

If you forget to download your transaction records, tax returns, or exemption certificates before the cutoff, you may lose them permanently. This can create issues during audits or when reconciling past filings.

How to avoid it:

1. Before your Avalara contract expires, download each of the following:
   • Filed returns
   • Detailed transaction data (inc. line items and assigned product tax codes)
   • Sales tax reports
   • Login details and filing frequencies for your nexus states
   • Copies of your customer exemption certificates
2. Back up your data in multiple locations (internal servers, cloud storage, etc.) to avoid loss or corruption.
3. Export data in standard formats like CSV or XLS for easy reference and cross-system compatibility.

Download everything you need close to your contract end date. However, don’t export too early, or you may miss any data collected between your download date and your cutover date.

Filing overlap or missed returns

It’s possible for brands to miss their filing obligations if transitions aren’t properly handled.

If both tax providers file the same return, you may end up double-remitting your taxes. If neither files, you risk penalties for a missed filing.

Fortunately, most of these issues can be resolved by assigning clear responsibilities to each provider.

How to avoid it:

• Confirm with Avalara when service is ending.
• Document the final filing period covered by Avalara.
• Confirm when TaxCloud will begin filing on your behalf.
• Notify your internal team of the provider change.

Remember, filing deadlines are based on the prior reporting period. For example, your June filing will account for taxes collected in May. Due to this delay, it’s possible to miscommunicate your intentions to your tax providers.

Although this may be frustrating, be explicit about which month or quarter is being filed to avoid miscommunication as responsibilities shift between platforms.

Turning off tax calculations prematurely

Disabling Avalara before TaxCloud is fully configured can result in orders being processed without appropriate tax, causing undercollection, refund issues, and future compliance problems. This is especially risky on platforms that don’t support multiple tax engines at once, like Shopify or WooCommerce.

To prevent this from happening, do the following:

• Test TaxCloud calculations in a sandbox or staging store, if possible.
• Do not disable Avalara until TaxCloud has been tested and its engine results are validated.
• If you’re unable to test live, coordinate a scheduled go-live time with our team to minimize disruption.
• Avoid making changes during high-traffic periods (sales events, product launches, etc.).

Once TaxCloud is enabled and calculations are confirmed, you can disengage with Avalara and turn off the system for live transactions.

However, until you’re confident that TaxCloud has been configured correctly, we recommend sticking with your current setup.

Not removing Avalara’s access from tax portals

Even after you cancel your Avalara subscription, the platform may still retain login access to your state accounts.

If Avalara retains access to your tax portals, their automated system may continue submitting filings even after you’ve transitioned to TaxCloud, leading to duplicate filings, payment conflicts, and confusion from state agencies.

How to avoid it:

• Identify all states where Avalara filed on your behalf, with special attention paid to non-SST states.
• Revoke third-party access in your state portal once Avalara has filed your final return.
• Update passwords or user roles where applicable. Changing the login details that Avalara’s integrations uses to validate its credentials can stop filing, even if you have trouble removing the integration.
• Notify state departments that you’ve changed service providers, if required. Keep in mind that notifying them may not prevent confusion if they receive conflicting filings from separate providers.

Our onboarding team will assist you with this process during your transition. We’ll let you know which accounts need attention and where you should focus your efforts to ensure that Avalara can’t submit returns after their final filing period.

However, this usually requires some manual effort on your part, as our team may not have the login credentials or user authority to make changes within your accounts.

Final steps

Once you’ve completed your onboarding setup, tested your tax calculations, and confirmed your final filing handoff with Avalara, you’re almost ready to go live!

This stage is about confirming your setup and coordinating the final transition from Avalara to TaxCloud.

Pre-flight and launch

Some businesses choose to go live as soon as the initial configuration is complete. However, if time allows, we recommend scheduling a brief handoff period where both providers remain connected to your systems but are disengaged from filing duties.

Taking this approach gives your team a chance to double-check everything before fully transitioning to TaxCloud.

Going live

Once TaxCloud is configured and tested, you’re ready to make the switch official. When you launch, TaxCloud will take over active tax calculation and begin preparing filings on your behalf.

Typically, that involves each of the following:

• Activating live tax calculations in your ecommerce or POS platform.
• Monitoring real-time transactions to verify tax is applied correctly.
• Ensuring filing schedules are active and ready for the next due date.
• Disabling or disconnecting Avalara, if the system was embedded in your online store.

Remember: If something doesn’t look right, reach out to the TaxCloud team immediately. It’s essential that any issues are corrected and resolved before filings begin.

Post-launch

Sales tax is constantly evolving as new regulations are passed. After launch, TaxCloud will help you stay informed, compliant, and prepared as your business evolves.

Most of these updates take place automatically as our team updates the TaxCloud engine. In those scenarios, only the updates that directly impact your tax calculations will apply to you.

For example, if a jurisdiction in the U.S. changes its tax policy, this will be reflected in the software via an internal update. Tax will apply correctly at checkout based on new rules and regulations, but you may not be notified of the change.

However, other information may be highly relevant to you. Be sure to check your reporting and tracking tools to ensure they’re working properly. Because TaxCloud offers nexus tracking, you’ll be alerted when you’re approaching a threshold in a new state.

Lastly, our onboarding and transition teams will be available for several weeks after your transition takes place. Lean on these resources while you have them in order to smooth out any kinks in the migration process.

After the migration is complete and things have had time to settle, we’ll put you in touch with our regular support team, who are better equipped to handle issues that fall outside the scope of the onboarding and transition process.

Final transition checklist

Use this checklist to confirm that your transition from Avalara to TaxCloud is complete and aligned across all data, filings, and system configurations.

1. Planning your exit from Avalara

• Review your Avalara contract and confirm your cancellation window.
• Choose a cutover date that avoids active filing periods.
• Notify internal stakeholders of the transition and timeline.
• Contact TaxCloud at least 30-60 days before your target cutover.
• Confirm how Avalara is filing (SST, non-SST, or both)
  • For SST: Select Option 3 to remove Avalara as CSP, and retain your SST account.
  • For non-SST: Confirm your final filing period and communicate exact filing dates.
• Save your SST ID for onboarding. Ensure Avalara will stop filing after their final reporting period.
• Confirm when TaxCloud will take over filing responsibilities.

2. Collecting and backing up your data

• Download all state tax returns filed through Avalara.
• Export sales tax reports by state or jurisdiction.
• Save 12-24 months of transaction-level data for nexus tracking and reporting.
• Export product tax code mappings (Avalara codes).
• Download customer exemption certificates. Record all states currently enabled for tax calculation.
• Store backups in secure locations using standard formats (CSV, XLS, etc.).

3. Setting up and testing TaxCloud

• Connect your ecommerce/POS/ERP platforms to TaxCloud.
• Map products to the correct TICs (Taxability Information Codes).
• Use sandbox and staging environments to test transactions across products, states, and scenario.
• Validate tax-exempt customer behavior.
• Compare TaxCloud’s calculations to Avalara’s outputs (where possible).
• Confirm accuracy before disabling Avalara.

4. Final handoff and go-live

• Confirm TaxCloud’s filing start date.
• Enable TaxCloud for live transactions.
• Deactivate Avalara from your ecommerce system.
• Revoke Avalara’s access to your state tax portals.
• Update portal credentials to prevent unintended filings.
• Notify states of your provider change, if required.
• Monitor real-time calculations after go-live.
• Confirm filing schedules are active.
• Archive all Avalara data for audit and reference.