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VAT Engine Introduction

The Avalara VAT Engine is a tool made up of analytical components that perform transactional VAT determinations. To operate, VAT Engine needs information of a transaction in order to create its VAT reports which later could be used in the ERP System for VAT Reporting to create invoices.

A small business customer would use VAT Engine with a user interface like VAT Expert where customers need to add the information manually in order to create XML files that can be submitted to VAT Engine. A large scale business would use an Engine Input XML File or the Engine Service to feed VAT Engine the required information automatically in order to make VAT determinations.