Calculate and report sales tax more easily with auto sales tax

With automated sales tax, powered by Avalara, sales tax is automatically calculated on invoices, while detailed reports help you prepare returns. Save time now and help avoid a compliance headache later.

Person holding laptop while calculating sales tax through Xero.

Fast, self-guided setup

Quickly set up sales tax in Xero for all the states you're registered to collect sales tax in.

Automated sales tax calculations

Sales tax is automatically calculated for any state or jurisdiction.

Comprehensive sales tax reporting

Use automatically created reports to track upcoming payments due and previously filed reports.

“Until now, I haven’t taken on goods-based businesses across multiple states because the sales tax is just too hard. I can now expand my services to more complex goods-based businesses.”

What accountants and bookkeepers are saying about it…

Fast, self-guided setup

Setting up automated sales tax is simple. Enter your contact information, business location and tax details to get set up in all states you’re currently registered to collect sales tax in.

  • Included
    Avalara covers all US states and more than 13,000 tax jurisdictions
  • Included
    Manage sales tax attributes for your products and services
An on-screen message confirms that sales tax has been set up in a specific state.

Automated sales tax calculations

Get automated sales tax calculations on invoices without the guesswork when you use Xero’s new invoicing option.

  • Included
    Taxes are automatically calculated based on where you’re selling from, where you’re selling to, whether an item is taxable according to state rules, and whether your customer is exempt from sales tax
  • Included
    Avalara automatically updates with the latest rates and rules about what’s taxable
  • Included
    Automated sales tax is not yet available on credit notes, repeating invoices, find and recode, and quotes, but you can use manual tax rates in these cases
Sales tax software in Xero showing automatic calculations for an invoice.

Comprehensive sales tax reporting

View enhanced, jurisdiction-based sales tax reports to make filing easier.

  • Included
    View automatically created state reports broken down by jurisdiction for each filing period
  • Included
    Get a summary, breakdown, or transaction view of sales tax totals that distinguishes between taxable and non-taxable sales transactions by jurisdiction
  • Included
    Set and view payment deadlines and previously filed reports
A detailed sales tax report displays in Xero showing sales tax by state or jurisdiction.

New to Xero? Try it free for 30 days

Try all of Xero’s features including invoicing and auto sales tax, free for 30 days.

Already using Xero? Try auto sales tax now

Try auto sales tax if you’re registered for sales tax and invoice for taxable goods and services, select “Sales tax” in the Accounting menu.

Are you an accountant or bookkeeper?

Automated sales tax is just one way that Xero can help you to support your clients and expand your services. Learn more about how Xero can help your practice grow.

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