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The last thing you want in a COVID-affected economy is to rack your brains about sales tax laws and rates as if 2020 didn’t give you enough headaches already. This is where eCommerce sales tax software comes into the picture.

These sales tax tools simplify the complications related to calculating sales tax and using tax rates, using the latest rules for different jurisdictions. Apart from that, they also help in filing returns, making a business audit-ready, and maintaining exemption certificates.

This list will help you to choose the right solution to automate sales tax for your business.

Top Tax Software for Magento 2 Stores

Avalara – Best eCommerce sales tax software for companies of any size and industry

Avalara advises businesses of all sizes to comply with tax regulations. In partnership with leading providers of ERP systems, accounting, e-commerce, and other financial management systems, Avalara provides cloud-based solutions to ensure compliance with various transaction taxes. Avalara’s Avatax removes the no.1 pain point of accounting overwhelm by supplying sales tax calculations and rules based on geolocation and product classification.

It suggests more than 700 integrations. Use it to manage your data across various apps connected with your e-commerce platform. Apart from that, it removes tax from exempt sales and skillfully manages and organizes exempt documentation.

Pros

  • End-to-end calculations coverage
  • A simple and clean interface
  • Precise reporting
  • Protected data and automated maintenance
  • Up to date tax rates and rules

Cons

  • No fixed payment rates for various business types
  • The software lacks freelance-friendly tax preparation features

 

Vertex – Best tax management software for small and medium businesses

Vertex utilizes a powerful calculation engine that allows achieving an accurate determination of sales and purchases tax in every transaction and also automates the tedious processes involved in calculating, collecting, and reporting on sales, VAT, and other transaction tax types.

Use this tool to stay on top of the latest economic trends, audit activity, and regulations in over 11,000 state and local jurisdictions.

Vertex can help users streamline their workflow and processes through capabilities for centralizing, automating, and improving tax accuracy across all transaction billing systems that you use. Vertex Cloud indirect tax simplifies computing and reporting of sales tax and consumer use tax in the US and value-added tax abroad.

Pros

  • Centralized and automated indirect tax processing
  • Easy navigation
  • The Help option updates you about new tax laws
  • An innovative way to determine calculations, taxability, and reporting on VAT and other tax-related processes

Cons

  • Calculations stored differently than as represented on screen
  • Customer service is available by email only

 

Intuit TurboTax – Best tax management Software as a service

TurboTax is known for processing simple tax returns efficiently. It also offers a free registration option along with easy navigation that can be used by a layman for personal tax return purposes.

Thanks to the advanced Navigation System guides new users by asking a series of easy-to-understand questions. The process becomes more convenient for users when they register the correct answer. It offers a repository of in-depth articles where users can get answers to all frequently asked questions and other important information.

Pros

  • Assistance in filling out the necessary documents
  • On-screen support for users who are stuck in the tax filing process
  • No need to install software
  • User-friendly interface
  • Import of W-2 if received from partner TurboTax

Cons

  • Expensive software tool
  • Impossible to determine the final cost until the file on a tax return is fulfilled

 

TaxCloud – Best sales tax supervision service for online retailers selling on marketplaces

The TaxCloud dashboard offers a host of features that can take care of all your tax compliance needs. It helps determine the applicable sales tax rate based on product or service and collects sales tax at the point of transaction. Use it to file and pay tax returns to appropriate state and local jurisdictions. The team also provides hands-on support for audit-related matters and state notices.

Pros

  • Superior sales tax reporting
  • An easy customer interface with multiple tools

Cons

  • Takes time to learn about the API
  • The system has a few bugs at times

 

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Dmitry Yatskevich

Dmitry Yatskevich

Head of Sales at Mobecls and eCommerce consultant with over 20+ years of experience, which he uses to help online retailers take their business to the next level.

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