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Xero Adds Sales Tax Functions

Xero is offering the ability to calculate and file sales tax from its accounting software. The New Zealand-based company is utilizing technology from Avalara.

Xero described the initial functuonality as best suited “for those who invoice for their goods and services in Xero, operate across multiple jurisdictions and have a mix of taxable, non-taxable and exempt goods.” 

The company said use cases will be expanded beyond invoices over the next few months. Planned new features include adding filing deadlines and “expanding past invoicing to other documentation and adding other revenue sources.”

Features included a guided set up for all states in which a business is registered to collect sales tax. The software can calculate appropriate rates upon invoices automatically, based on where a business is selling from, selling to and whether an item is taxable according to state rules.

Uses can view a summary of sales obligations and also break down information by state, jurisdiction, and tax exemption. Xero customers will also have the option of signing up for Avalara’s automated e-filing, with Xero’s sales data connecting to Avalara.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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