DAVO Technologies

DAVO Technologies is an automated sales tax management service headquartered in Topsham, Maine, that integrates directly with POS systems to collect, set aside, and file sales tax on behalf of restaurants and retailers. Founded in 2012 and acquired by Avalara, a leading tax compliance platform, DAVO takes a unique daily set-aside approach to sales tax management: it automatically transfers the exact amount of sales tax collected each day into a dedicated account, then files and pays sales tax to state authorities on the due date — without requiring any action from the business owner.\n\nDAVO's integration-first approach means it connects directly to restaurant POS systems including Square, Clover, and Shopify, pulling daily transaction data automatically and handling all calculations, filings, and payments behind the scenes. For restaurant operators who face significant complexity around sales tax — including different tax rates for food, alcohol, and delivery — DAVO eliminates an entire category of administrative risk and compliance burden.\n\nAs part of the Avalara family, DAVO benefits from Avalara's regulatory expertise, state tax authority relationships, and technology infrastructure. The service is particularly popular among independent restaurant operators and small retail businesses that lack dedicated accounting staff and face significant penalties for missed or incorrect sales tax filings. DAVO's flat-fee pricing model and zero-effort setup make it an accessible solution for operators who want to eliminate sales tax risk without hiring a tax professional.