Avalara, a company that offers cloud-based tax-compliance software, has just announced it has added Bitcoin to the roster of currencies its platform can handle, the company announced on its blog.
Automated compliance could be a boon for companies that accept Bitcoin payment but have had to manually calculate and pay state and local sales tax or VAT. As Geekwire points out, in the United States alone there are 10,000 different tax jurisdictions.
“Avalara has a history of researching and addressing sticky compliance issues right from the get-go,” senior director Webb Stevens said. “Whether it’s preparing merchants to quickly address the litany of sales tax holidays or helping businesses run entirely on Bitcoin, Avalara works hard to ensure customers have real solutions, real fast.”
February Funding Round
This news comes just three months after Avalara announced it had raised $30 million for sales tax and compliance software in a funding round led by existing investors Battery Ventures and Sageview Capital, according to Dow Jones. That puts Avalara’s total capital raised since its founding 10 years ago at more than $100 million.
The funding round and this announcement seem to serve as rather clear indications as to how Avalara executives plan to grow the company.
“Avalara intends to innovate in the handling of cryptocurrencies, just as [we] have in handling tax and compliance issues for virtual goods, digital services and highly mobile location-based transactions,” Webb said.
We apologize for incorrectly stating that there are 10,000 different tax jurisdictions in the US. It's actually more than 10,000 in the United States alone.
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