Tax Compliance Software Firm Avalara Acquires INPOSIA

Avalara, a tax compliance software firm with a focus on the business sector, said on Tuesday (Dec. 29) that it has struck a deal to buy INPOSIA Solutions GmbH.

The Seattle-based firm, which did not disclose the purchase price, said in a press release that the transaction is expected to close in the first half of 2021.

Avalara’s acquisition of INPOSIA Solutions is expected to enhance its offerings, with the German software company focused on “e-invoicing, digital tax reporting, and business and data integration,” the companies said.

The deal also comes amid a shift toward “real-time compliance requirements” as tax officials around the globe seek ways to collect revenue faster, and with more transparency and a lower risk of fraud.

Electronic invoicing and associated live reporting requirements, in turn, can help to spur the exchange of tax and purchasing information “in or near real-time” between the business sector and governments around the world, the companies noted in the press release announcing the deal.

INPOSIA currently works with customers in more than 60 countries in Latin America, Europe and Asia.

“E-invoicing is becoming a mandatory global requirement for transactional tax compliance,” said Jayme Fishman, EVP of corporate development at Avalara, in a press release. “INPOSIA is an essential platform to connect sellers and suppliers, and businesses and governments. The trusted facilitation of data between these parties and across any business system is essential to success as governments move from the end of the transactional tax chain to the middle.”

In September, Avalara rolled out its Avalara India GST e-Invoicing product, designed to help firms follow goods and services tax rules in India.

“Real-time data management is more important than ever as businesses demand more visibility and accessibility to their invoicing records,” said Muzaffer Havcarci, CEO of INPOSIA, in a press release. “The demands of digital transformation have accelerated this need – for businesses with each other, and from global governments.”