New Avalara Intelligent Tax Classification Solution Automates Product Mapping at Scale

AI-powered platform unifies self-service, API automation, and expert-managed workflows to classify product catalogs with trusted tax codes

DURHAM, N.C., Nov. 5, 2026 /PRNewswire/ -- Avalara, Inc., the agentic AI leader in global tax and compliance, today announced the launch of Avalara Intelligent Tax Classification (AITC), an AI-powered platform designed to automate and streamline the classification of product catalogs to tax and compliance codes. Trained on more than 3 billion items across 8,000 brands, AITC delivers more accurate, confidence-scored tax code recommendations, role-based approval workflows, and a robust audit trail to help businesses eliminate downstream calculation errors and accelerate time-to-market for new products.

Solving the Critical Gap in Product Tax Classification

Product tax classification remains one of the most labor-intensive and error-prone steps in indirect tax compliance for growing mid-market and enterprise businesses. Companies managing high-volume SKU catalogs often rely on spreadsheets, disconnected portals, and email threads to map products to jurisdiction-specific tax rules.

"Accurate indirect tax determination begins long before the point of sale. It starts with knowing exactly how each product in a catalog is categorized under constantly shifting tax rules," said Kael Kelly, GM of Avalara Tax Research and Avalara Tax Content. "Whether managing a large number of SKUs or classifying complex products, businesses need a faster and more accurate way to determine taxability. By combining an AI engine trained on billions of products with human-in-the-loop oversight and expert services, we are helping businesses bridge the gap between SKU creation and compliant sales while providing total confidence during tax audits."

Key Capabilities of Avalara Intelligent Tax Classification

• AI-Assisted Recommendations with Confidence Scoring: Powered by Avalara's trusted tax content, the AI engine analyzes complex item descriptions and attributes to provide tax code recommendations, accompanied by transparent confidence scores. Teams can automatically approve high-confidence items in bulk while routing edge cases for manual review or expert escalation.
• Human-in-the-Loop Governance and Role-Based Approvals: Built-in multi-role workflows allow businesses to establish distinct separation of duties between catalog data entry and final tax approval, ensuring rigorous oversight before data is exported.
• Three Flexible Delivery Modes in One Platform: Organizations can tailor their classification workflows to match internal capacity and technical maturity by utilizing a self-service portal for AI-assisted internal reviews, a fully automated REST API for system-to-system bulk processing, or Avalara Managed Services to have Avalara tax experts handle classification directly. Teams can combine all three modes and switch seamlessly as operational requirements evolve.
• Timestamped Review Log: Every review and approval action is logged, timestamped, and stored. Businesses gain a documented internal record that supports their own audit and compliance requirements.
• Broad Ecosystem and Tax Engine Compatibility: Available as a standalone solution or alongside Avalara AvaTax and Avalara Tax Content, AITC connects via API to ERP, ecommerce, PIM, and POS systems, giving businesses the flexibility to fit it into their existing tech stack.

AITC launches with support for Avalara tax codes, with additional classification outputs on the roadmap, including Harmonized System (HS) Codes for cross-border trade, Amazon Product Tax Codes, UNSPSC classifications, Google Product Codes, Stripe Product Tax Codes, and custom taxonomies, all planned to be delivered through the same platform.

Learn more about Avalara Intelligent Tax Classification.

About Avalara

Avalara is the agentic AI leader in global tax and compliance. For more than two decades, Avalara's trusted tax content, deep compliance expertise, proprietary data, and technology have helped customers succeed on a global scale. Avalara now pairs that foundation with agentic AI to help businesses execute complex compliance work while keeping people in control. Avalara processes more than 54 billion AvaTax API calls annually and supports millions of businesses worldwide. For more information, visit Avalara.com.

SOURCE Avalara, Inc.