RSMUS.comMigrate to new AvaTax for Shopify platform before April deadline
Plan for transition to avoid tax compliance disruption
By Thomas Hamill and Michael Giannettino
A significant change is approaching for businesses utilizing Avalara AvaTax with Shopify Plus. As of April 30, 2025, the current AvaTax integration will be deprecated, requiring action from users to avoid disruptions in their sales and use tax calculation and compliance services from Avalara.
Avalara has historically provided automated tax calculations with Shopify Plus through the AvaTax integration. However, as of April 30, 2025, this legacy integration will no longer be supported. In order to continue leveraging Avalara’s services, users are required to migrate to the new Avalara for Shopify integration, which is directly managed and supported by Avalara.
What this means for you
Although users can continue using AvaTax through the legacy integration with Shopify Plus until the deadline, planning for this transition is essential to avoid disruptions in tax compliance.
To maintain seamless tax calculations in your Shopify store after April 30, 2025, businesses should switch to the Avalara for Shopify integration. This new solution provides several key benefits including direct support from Avalara, enhanced transaction and exemption management, and retention of existing AvaTax settings after transition.
Planning your migration
The deprecation of AvaTax for Shopify Plus marks an important shift in how merchants will handle tax compliance. By transitioning to the new Avalara for Shopify integration, businesses can ensure they remain compliant while benefiting from enhanced features and support. As we approach the April deadline, it’s vital to begin planning this migration strategy now. Alternatively, should you choose not to migrate to the Avalara for Shopify solution, you should coordinate with Shopify to properly configure and deploy the native Shopify Tax solution.
For further assistance or detailed information about this transition, please reach out to your Avalara account manager or directly to thomas.hamill@rsmus.com or michael.giannettino@rsmus.com of RSM’s transaction tax automation team.
This article was written by Thomas Hamill in collaboration with Michael Giannettino.
Michael Giannettino is a member of the firm’s state and local tax (SALT) practice and has served clients as a public accountant for over 25 years. He serves as the leader for RSM’s Northeast SALT indirect technology practice, where he consults clients on state and local indirect tax matters regarding people, process and technology needs.
Thomas Hamill
Thomas joined RSM in 2013, he is in the transaction tax automation practice and is a consumer products senior analyst. He assists clients with managing indirect tax requirements through process improvement and digital innovation. As a member of the firm’s Industry Eminence Program, Thomas works alongside the firm’s chief economist and his fellow senior analysts to understand, forecast and communicate economic, business and technology trends affecting middle market businesses.