For accountants with clients that sell or distribute alcohol beverages, Avalara Inc., a provider of cloud-based sales tax compliance automation, has released Avalara Shipping Verification for Beverage Alcohol (Avalara Shipping Verification).
Avalara Shipping Verification is a new enhancement to Avalara for Beverage Alcohol, which provides a complete solution for direct-to-consumer (DTC) alcohol businesses across the compliance life cycle, from licensing and product registrations to tax calculations and returns.
Avalara Shipping Verification allows wineries, breweries, distilleries, importers, alcohol retailers, alcohol marketplaces and alcohol delivery apps to check, in real time, major compliance areas of beverage alcohol DTC shipments, including:
License requirements. Checks if the destination requires a license to ship into the state, and if the shipper has a valid license for each jurisdiction
Dry areas. Uses the destination address to confirm if alcohol shipments are allowed, including, for example, wet or moist precincts within dry counties
Volume limits. Analyzes transaction details to determine if a shipment will cause the licensee to exceed per-individual, per-household, or state aggregate volume limits
Age validation. Ensures the purchaser and recipient are of legal drinking age
The new offering also provides clear messaging to ecommerce, point of sale, club/subscription, and other order management systems if an order fails a check, to help mitigate shipment risks. This information can be used by sellers to determine next steps for their business and shipping compliance for beverage alcohol.
Avalara Shipping Verification is a key addition to the Avalara for Beverage Alcohol suite of software and services that includes:
Avalara AvaTax for Beverage Alcohol. Locates and calculates multi-tax (sales and use tax plus beverage alcohol tax) rates with rooftop-level accuracy, and connects to ecommerce or accounting software already in use by customers
Avalara Licensing for Beverage Alcohol. Secures and renews licenses with the federal Alcohol and Tobacco Tax and Trade Bureau (TTB), state departments of revenue (DORs), and Alcohol Beverage Control departments (ABCs)
Avalara Product Registration for Beverage Alcohol. Automates secure product registrations and renewals with each jurisdiction, making sure each label is properly registered based on account information
Avalara Returns for Beverage Alcohol. Manages the end-to-end tax returns process on behalf of customers, improving compliance while reducing manual effort
Avalara Shipping Verification comes to market as the rules for DTC interstate shipment of alcohol are becoming increasingly complex. Regulations vary by state, with significant consequences for noncompliant shipments, including loss of licenses and approvals to sell in a state. Avalara Shipping Verification is bundled with AvaTax for Beverage Alcohol and delivers the following benefits to sellers:
Mitigates risk for wineries that ship higher volumes to make sure requirements are met, business can continue, and state approvals are maintained
Allows Avalara customers to maintain shipping compliance via messaging verification in their current systems
Delivers cost savings for AvaTax for Beverage Alcohol customers as this feature is included at no additional fee
To learn more about Avalara for Beverage Alcohol, click here.