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.