Customer service: 24/7 (live rep), phone during business hours, online
How Did We Choose the Best Sales Tax Software?
The best sales tax software takes care of the hard work, letting you focus on your product or service and customers. Here’s how we evaluated some of the best sales tax software in the industry:
Sales tax features: We looked for sales tax software with tax calculators and filing, transaction tracking, exemption certificate tracking, and more.
Integrations: Some accountancy software types will have their own module, whereas others will integrate with accounting systems and inventory software. The best sales tax software should allow you to adjust the functionalities of your platform and use it with third-party applications.
Reports: The best sales tax software will provide easy-to-digest reports. It should allow you to keep track of activities per month, per quarter, and per year. You should have a clear picture of your sales tax bill and when it was paid.
What Is Sales Tax Software?
Sales tax software refers to online platforms that help businesses calculate their sales tax, issue reports, and file returns. There are thousands of different sales tax rates in the U.S. alone, and international sellers have even more to consider.
Automating the process makes it faster to reconcile, check exemptions, and calculate taxes. Since the software typically tracks transactions and files returns, it creates an opportunity to get an overview of compliance. This report can be used as an audit trail if there’s an investigation from the tax authorities.
The right sales tax software will require some setup to cover the products and areas where you sell. The majority will offer research tools that give you the information you need about rates and requirements, which you can apply to invoices. Many integrate with your e-commerce platform, so you can apply it to sales as customers check out.
How To Choose Sales Tax Software
When looking for the best sales tax software, there are a few essential features you need to evaluate:
Automatic application of tax rates: Most systems will include a database of certain sales tax rates, which can be applied automatically when particular conditions are met. Make sure you find out which jurisdictions the software covers and whether it has the appropriate regulations for your products.
Tax returns: Calculating and charging your customers sales tax is the first step. The second part is compliance with tax laws and filing returns by the required deadline. Check whether your software helps you compile the returns or if it offers e-filing options too.
Exemption certificate management: This is vital if you face an audit. Keeping track of any exemptions from customers, including storing them and knowing when they expire, is a pivotal part of tax compliance. Your software should provide alerts and collect your certificates to make this easy.
Detailed reports: No matter how much you trust your software, you’ll still want to be able to check and prove that sales tax has been applied appropriately. The platform should give you in-depth reports as well as summaries of transactions and returns.
Integration and customization: Whether it’s through API or built-in integrations, your sales tax software should work with your existing systems. If you use a particular e-commerce platform, finding one that communicates with it is essential to smooth operation and easy tax application.
Why it’s best: Excellent customer support, globally accessible, one interface for all tax needs
The full name of the product is Vertex Cloud Indirect Tax, as it deals with U.S. sales and consumer use tax, as well as value added tax (VAT) abroad. The company boasts over 40 years in the tax technology industry and provides support in more than 130 countries. Vertex Cloud’s sales tax software aims to deliver a consistent experience by using one interface for all your needs.
The platform provides tools for the various stages of the tax compliance cycle. You’ll have access to automated calculation, exemption certificate management, and completing tax returns. As the name suggests, this software is deployed as a cloud, web-based, or SaaS solution, so updates arrive automatically, and you can access it from several devices.
You’ll find several Vertex Cloud integrations available. The platform also works with many types of e-commerce systems, as well as procurement platforms and ERP. Moreover, it can be tailored to suit your needs. Accountancy firms can also use this system with specific client management features and an online dashboard for a clear overview of different projects.
A strong advantage of Vertex Cloud is that you get online support during business hours and access to a live rep 24/7. The tax research team covers complicated compliance issues, which means this software can fully automate your tax process. However, the downside to this platform is the lack of pricing information.
Pros and cons of Vertex Cloud
24/7 customer support
Automated tax process
Over six reporting options
No pricing information
What customers are saying about Vertex
Many Vertex Cloud customers are happy to have an online system, stating, “There is no server maintenance or monthly tax rate update files to be applied” and “Being able to access Vertex data from anywhere in the world made our team more productive across the board.”
Why it’s best: Handles international duties and taxes, automates tax compliance and runs in the background, calculates tax rate by geolocation
Avalara understands that many businesses sell across state borders and globally, so it provides software capable of handling international duties and taxes. The SaaS cloud or web-based platform automates the key steps of tax compliance. One powerful feature of the software is that it calculates rates for each transaction by geolocation instead of ZIP code. This improved accuracy means customers are charged correctly, and you get address validation.
It’s not just the location that AvaTax handles; it can automatically apply the appropriate taxes for different goods and shipping, taking into account sales tax holidays, too. There’s a handy alert system for when new tax obligations are established that includes a map view of where you need to file. The platform is exceptionally flexible, as you can add profiles for multiple businesses while managing them separately.
AvaTax ST has more than 700 pre-built integrations and an API to help your departments use the platform with their existing systems.
You can see AvaTax ST in action and test it for free for 60 days before choosing a paid plan. Unfortunately, support is only available by phone during business hours, so resolving issues can take a little longer.
Pros and cons of Avalara
60-day free trial.
More than 700 integrations, including e-commerce sites.
Advanced transaction rules.
Support by phone during business hours only.
What customers are saying about Avalara
“Once you have it set up, it runs in the background and involves almost no review. I know we are always charging the correct tax rate, and with the tax return processing, I know my returns are being submitted correctly and on time.”
Why it’s best: Easily customize exemption and override configurations, tax calculations, and locations
CCH has delivered tax and accounting guidance since the early 1900s. The platform is one of the best in its league, with seamless data flows that remove the time-consuming manual processes. CCH SureTax, like many other programs, comes with different modules that cover aspects of sales tax, such as calculation, exemption certificate management, and returns.
The platform is cloud-based, providing maintenance-free operation. CCH SureTax calculates rates for real-time sales in U.S. and Canadian jurisdictions. A big part of its appeal is the Wolters Kluwer name, which is trusted in audit and sales tax data. There are plenty of ways to tailor the software to your needs, including exemption and override configurations and nexus and location options.
The integration module of CCH SureTax means you can connect it to existing systems your company uses. Many big names are on the list of compatible applications, including Microsoft Dynamics, Magento, and Salesforce.
There’s a free demo to help you get a feel for the platform. However, there’s no pricing structure available or a free trial. Moreover, CCH SureTax is purely for the U.S. and Canada, so businesses outside this region will have to find an alternative. In addition, phone support is only during business hours.
Pros and cons of CCH SureTax
Tax research data.
Flexible tracking and reporting.
No free trial.
Phone support during business hours only.
What customers are saying
“I like how CCH is easy to navigate and how it holds all of the files necessary to complete returns. It’s cloud-hosted, and it is relatively fast.”
Why it’s best: Real-time reconciliation, validation, and tax filing tools, detailed monthly reports and alerts
Sales Tax DataLINK is a comprehensive platform that takes you from calculation to filing. The company focuses on tax technology, and its patented compliance platform has a reputation for catching errors at the invoice level to prevent future complications. The system is web-based and works in the cloud and as SaaS.
The software includes multi-jurisdiction rates and configurations for different industries and products. The plans are customizable and arranged after consulting an experienced sales tax specialist. There’s also an alert system to help you keep track of rate issues in a particular location.
FileLINK is one of the best sales tax software thanks to its real-time reconciliation, validation, and various tax filing tools. Monthly reports include improvement alerts, making your returns more accurate and easier to file over time.
Additionally, FileLINK offers various integrations with third-party software. While it doesn’t publicize which options it supports, it can connect with most ERP and e-commerce platforms.
The platform provides useful research tools to find out about nexus and other rules and rates in different jurisdictions. This aspect, combined with the improvement recommendations at each compliance cycle, will get your taxes in good shape. Unfortunately, it doesn’t list any plans or prices, and phone support is only during business hours.
Pros and cons of Sales Tax DataLINK
Useful research tools.
Phone support during business hours only.
What customers are saying
Once customers understand FileLINK, many review it as one of the best sales tax software programs. One states that it “Saves time [and] integrates into our software. They are responsive and helpful” and that “Monthly updates on constantly changing tax rates ensure our invoices are accurate.”
Why it’s best: Complies with tax regulations across several industries, simple e-filing capabilities, generates reports easily
GreenGST is described by Moglix, its creator, as a one-stop solution for compliance needs. Moglix is a company based in Asia focusing on B2B commerce and working with SMEs. After the first year of understanding the issues digital procurement and supply chain companies face, it launched its own tax compliance software. The result was GreenGST, which is SaaS, web, or cloud-based.
The system helps with several aspects of tax compliance. In addition to calculation, it allows you to generate accurate invoices, reconcile transactions, and generate reports. GreenGST is used for quick and easy e-filing and is particularly popular in India.
GreenGST features most of the services you need and would expect from one of the best sales tax software platforms. It works for several industries but has mostly been designed for digital procurement, manufacturing, and shipping in India.
The free demo is a helpful way to discover whether this program is the right fit for your company. However, the pricing structure isn’t public, so it’s difficult to know if this is a scalable solution.
Pros and cons of GreenGST
24/7 live rep.
High price point.
No dedicated hosting.
What customers are saying
Although GreenGST doesn’t have a long track record, customers are still enthusiastic about the platform. One user states, “This software has been a lifesaver for me!” mentioning that the software fits their needs and doesn’t have many downsides.
Frequently Asked Questions About Sales Tax Software
What is sales tax software?
Sales tax software refers to programs and online platforms that help businesses calculate their sales tax, issue reports, and file returns. Many integrate with your e-commerce platform, so you can apply it to sales as customers check out.
How much does sales tax software cost?
Most companies only provide a quote after a consolation to understand your needs. The providers listed here charge between $19.99 and $158 per month.
What are the benefits of sales tax software?
No matter the size of your business, sales tax software can help you in many ways. These include meeting your deadlines, simplifying tasks, saving time, and keeping your company compliant.
What features should I look for in sales tax software?
The essential features of good sales tax software include automatic application of tax rates, compiling and filing returns, exemption certificate management, providing detailed reports, and integration and customization.
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