About
DAVO Sales Tax, offered by Avalara, is a hands-free sales tax automation platform designed specifically for small businesses such as restaurants, retail shops, and salons. Once connected to your point-of-sale (POS) system, DAVO automatically pulls the correct sales tax amount from your daily sales and sets it aside in a dedicated account. When your filing deadline arrives, DAVO prepares your return, files it with the appropriate tax authority, and pays the balance in full — on time, every time, and guaranteed. Despite its sophistication, DAVO requires zero changes to how you run your business. You continue entering sales as usual while DAVO handles all the tax compliance in the background. The platform integrates with a wide range of popular POS systems including Square, Clover, Toast, Lightspeed, SpotOn, QuickBooks, Revel, and many more, making setup seamless for most business types. DAVO is ideal for business owners who want to eliminate the risk of missed or incorrect sales tax filings without hiring an accountant or learning complex tax rules. Rated 4.7–4.8 out of 5 across major review platforms, it is trusted by thousands of small businesses across the United States. The service is available for $57.99/month after a free first-month trial, with no long-term contracts required.
Key Features
- Daily Sales Tax Set-Aside: DAVO automatically pulls the exact sales tax owed from your daily sales and holds it securely, so funds are always available when your payment is due.
- Automated Filing & Payment: When your tax deadline arrives, DAVO prepares your return, files it with the appropriate state or local authority, and pays the balance in full — no action required from you.
- Broad POS Integration: Connects seamlessly with 20+ popular POS systems including Square, Clover, Toast, Lightspeed, QuickBooks, Revel, and SpotOn, making setup quick and code-free.
- On-Time Guarantee: DAVO guarantees that your sales tax will be filed and paid on time and in full, eliminating the risk of costly penalties and late fees.
- Zero Workflow Changes Required: Business owners simply continue entering sales as usual — DAVO handles everything in the background without disrupting daily operations.
Use Cases
- A restaurant owner connects DAVO to their Toast POS to automatically handle monthly sales tax filing across multiple states without hiring an accountant.
- A boutique retail shop uses DAVO to ensure sales tax collected from customers is set aside daily and never accidentally spent, avoiding cash flow surprises at filing time.
- A salon franchise with multiple locations uses DAVO to standardize and automate sales tax compliance across all branches simultaneously.
- A first-time small business owner relies on DAVO to handle state sales tax requirements they don't fully understand, avoiding costly filing mistakes.
- A seasonal pop-up business uses DAVO's monthly subscription to handle sales tax only during active months, canceling during the off-season with no long-term commitment.
Pros
- Truly Hands-Free Automation: Once connected to your POS, DAVO requires no ongoing input — it sets aside, files, and pays sales tax entirely on its own.
- Wide POS Compatibility: Supports 20+ major POS systems out of the box, making it accessible to the vast majority of small retail and food service businesses.
- Strong Customer Ratings: Consistently rated 4.7–4.8 out of 5 across G2 and other review platforms, with users praising it as a must-have time-saver.
- Compliance Guaranteed: The on-time filing and payment guarantee gives business owners peace of mind that they won't face penalties for missed deadlines.
Cons
- Single Flat Monthly Fee: At $57.99/month, the flat pricing may feel steep for very small or seasonal businesses with minimal sales tax obligations.
- U.S.-Focused Only: DAVO is designed for U.S. state and local sales tax compliance and is not suitable for businesses operating outside the United States.
- Requires Compatible POS: Full automation depends on POS integration; businesses using unsupported or custom POS systems may have limited functionality.
Frequently Asked Questions
How does DAVO set aside my sales tax?
DAVO connects to your POS system and automatically calculates and withdraws the sales tax collected from your daily sales, holding it in a secure account until your filing deadline.
Which POS systems does DAVO integrate with?
DAVO integrates with 20+ POS systems including Square, Clover, Toast, Lightspeed, SpotOn, QuickBooks, Revel, SkyTab, TouchBistro, GoTab, SumUp, and many more.
Is there a free trial?
Yes. DAVO offers a free trial for your first month, including your first monthly filing. You must cancel before the end of the trial month to avoid being charged $57.99 on the first of the following month.
What does the sales tax guarantee cover?
DAVO guarantees that your sales tax will be filed and paid on time and in full, subject to conditions and limitations outlined in their terms. If DAVO causes a late filing, they cover any resulting penalties.
Who is DAVO best suited for?
DAVO is ideal for small business owners in retail, food service, salons, and similar industries who collect sales tax and want to eliminate the time and risk associated with manual tax compliance.
