Filing returns

Guide: Avalara Managed Returns API (U.S. and Canada)

Understand the automated process Avalara uses to file returns on a recurring basis.

Once a merchant configures the return form and approves the filing calendar, Avalara starts the automated return filing process.

This process recurs based on the filing frequency set 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:

1. Ingest transaction data

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

2. 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 can review this summary to verify the totals before submission.

3. Make adjustments (if needed)

   If necessary, adjust account for:

   • Prior payments

   • Manual tax credits

   • Amended transactions

   Complete these adjustments before you lock the return for submission.

4. Lock and approve the return

   Once verified, Avalara locks the return to prevent further changes. This approval step makes sure that the return is ready for filing.

5. Avalara submits the return

   Avalara submits the return to the appropriate tax authority using the method defined during setup (e-filing, web upload, or manual).

6. 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 need to design their systems to:

• Continuously ingest transaction data

• Poll for return status updates

• Show filing status and confirmation details to merchants