Case Study: Groupon reduces tax complexity and boosts compliance with Avalara

Groupon relies on Avalara to reduce tax complexity

Groupon, a global ecommerce marketplace connecting millions of consumers with local and international businesses, faced mounting indirect tax complexity—from U.S. economic nexus and marketplace rules to international e‑invoicing and transparency laws. Keeping up with rapidly changing rates, taxability rules, and hundreds of monthly filings created compliance risk and process inefficiencies that threatened growth.

Avalara implemented a custom solution using AvaTax and Avalara Returns, with nested merchant accounts that let Groupon collect taxes where required or pass tax through for merchants to remit. Automated rate updates, taxability determinations, and filing/remittance services boosted compliance, streamlined processes, removed operational burdens, and enabled faster product launches and business growth.

Group​o​n

Brad Caproni

Director, Global Indirect Tax