Filing returns overview

Once a merchant’s return form is configured and a filing calendar is approved, Avalara begins the automated return filing process. This process occurs on a recurring basis according to the filing frequency defined during setup, such as monthly, quarterly, or semiannually, depending on the jurisdiction and form.

Each filing cycle follows the same core workflow:

Filing cycle workflow

The filing cycle has these steps:

Ingest transaction data

At the start of each filing cycle, transactional data for the merchant is imported via API. This includes all taxable and exempt sales relevant to the return period.
Reconcile Liability summary

Avalara generates a liability summary using the ingested data. This includes:
- Total taxable sales
- Tax collected
- Jurisdictional allocation
- Prepayments or credits carried forward (if applicable)
Partners or merchants may review this summary to verify the totals before submission.
Make adjustments (if needed)

If necessary, adjustments can be made to account for:
- Prior payments
- Manual tax credits
- Amended transactions
These adjustments should be completed before the return is locked for submission.
Lock and approve the return

Once verified, Avalara locks the return to prevent further changes. This approval step ensures that the return is accurate and ready for filing.
Avalara submits the return

Avalara submits the return to the appropriate tax authority using the method defined during setup (efile, web upload, or manual).
Payment and confirmation

If a Funding POA is on file, Avalara withdraws funds and remits payment on the merchant’s behalf. A filing confirmation and payment record are stored and made available via the API.

Filing is a recurring process

This workflow repeats automatically according to the filing calendar frequency for each return. Partners should design their systems to:

Continuously ingest transaction data
Poll for return status updates
Display filing status and confirmation details to merchants