Avalara, Inc. announced that Drop is improving compliance and saving time with Avalara's core software solutions for tax calculations and returns. Prior to automating its tax processes, Drop operated in the ecommerce space and calculated sales and use tax, VAT, and GST manually. Not only was this a heavily manual process and a headache for the Drop team, accuracy was also an ongoing issue.

In 2022, Drop received notification that it exceeded tax thresholds in Canada and the U.S., and was required to register to collect tax within certain Canadian provinces and U.S. states. The company scoured the internet for tax compliance providers and asked partners for recommendations. Drop calculates tax on nearly 10,000 transactions a year using Avalara AvaTax and files more than 150 returns annually using Avalara Returns.

One of the top benefits of using Avalara Returns is Drop's ability to make a single payment each filing period to remit tax in the 22 U.S. states where it sells and another for Canada.