Global Businesses Achieve Up to 500% ROI Managing VAT Compliance with Avalara, Independent Study Finds
Customer research shows organisations reduce manual effort, lower compliance costs, and cut risk with Avalara VAT Reporting and Avalara Managed VAT Reporting
LONDON, July 30, 2026 /PRNewswire/ -- Avalara, Inc., the agentic AI leader in global tax and compliance, today announced findings from an independent study conducted by Hobson & Company showing that organisations using Avalara VAT Reporting and Avalara Managed VAT Reporting can achieve measurable financial, operational, and compliance benefits as they modernise global VAT reporting processes.
Read the full ROI reports here:
Based on independent customer interviews and modelled ROI scenarios, the research found that organisations using Avalara's VAT reporting solutions can achieve 200%–500% ROI over three years, with modelled payback periods of roughly three to four months depending on the operating model. The analysis drew on validation work with 14 customers and highlights how businesses are streamlining VAT compliance, reducing reliance on external providers, and improving visibility and consistency across jurisdictions.
"Avalara's global VAT solutions are purpose-built to eliminate the complexity, cost, and compliance risk that comes with managing VAT across borders," said Greg Chapman, EVP at Avalara. "These new independent findings reflect that automating VAT compliance doesn't just save time and money, but fundamentally changes how finance teams operate and gives businesses the confidence to grow globally without compliance holding them back."
Highlights from the Study
For organisations that want to manage VAT reporting in-house with greater automation and control, Avalara VAT Reporting helps standardise workflows, automate validations, and centralise visibility across countries and filing periods. In a representative enterprise scenario involving $150 million in VAT-applicable revenue across five countries, Hobson & Company found that Avalara VAT Reporting delivered:
- Up to 466% ROI over three years
- Annual benefits exceeding $470,000
- An 85% reduction in VAT return preparation and filing time
- A 95% reduction in third-party compliance accounting costs
- A 90% reduction in the risk of VAT fines and penalties
For businesses that prefer guided, end-to-end support, Avalara Managed VAT Reporting combines software with expert service to help manage registrations, return preparation, submission, and ongoing compliance across jurisdictions. In a representative mid-market scenario involving $50 million in VAT-applicable revenue across eight countries, Hobson & Company found that Avalara Managed VAT Reporting delivered:
- Up to 277% ROI over three years
- Annual benefits exceeding $140,000
- A 90% reduction in expected effort to prepare, file, and review VAT returns
- A 75% reduction in third-party compliance accounting costs
- A 90% reduction in the risk of VAT compliance fines and penalties
Across both deployment models, the research points to the same conclusion: the strongest business case for modernising VAT reporting comes not only from reducing compliance risk, but from improving operational efficiency. Organisations realised value through less ERP integration effort, less manual validation, faster return preparation, reduced reliance on external providers, and a reporting model that scales more effectively as the business grows.
To learn more about Avalara VAT Reporting and Avalara Managed VAT Reporting, visit avalara.com/us/en/products/vat-returns-and-reporting
About Avalara
Avalara is the agentic AI platform for global tax and compliance. For more than two decades, Avalara has built one of the most expansive libraries of tax content and integrations in the industry, processing more than 54 billion transactions annually and supporting millions of businesses worldwide. The company's purpose-built AI agents automate end-to-end compliance with greater precision, from tax calculations and return filings to exemption certificate management and beyond. For more information, visit Avalara.com.
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