Our Top Picks

AvaTax ST
AvaTax ST
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Online, phone during business hours
  • Address validation
AvaTax ST understands that many businesses sell across state borders as well as 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 particularly strong 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.

Features include:

  • Address validation
  • Advanced transaction rules
  • Over 700 integrations
  • Multiple business profiles
  • Export data to reports for filing and auditing
  • Alerts for tax obligations
  • Map view of tax thresholds
  • Options for small, medium-sized, and enterprise businesses
Additionally, AvaTax ST has more than 700 pre-built integrations and an API that will help your departments use the platform with their existing systems. You can combine the program with others in the Avalara suite to enhance its capabilities in terms of returns and exemption certificates.

Pros & Cons

You can see AvaTax ST in action and test it for free for 60 days before choosing a paid plan. One of its best features is that it integrates well with other applications, including POS systems and e-commerce sites. Since different counties, states, and countries apply a range of tax rates, using this platform with threshold alerts and geolocation means you can stay on top of all your obligations.

Thanks to the advanced transaction rules and automatic updates, once set up, the program runs in the background taking care of everything. Unfortunately, as support is only available by phone during business hours, it can take a little longer to resolve issues.

Pros

  • 60-day free trial
  • More than 700 integrations, including e-commerce sites
  • Advanced transaction rules

Cons

  • Support by phone during business hours only

What Customers Are Saying

After trying AvaTax ST, many users find it’s one of the best sales tax software platforms available, saying “The reports were easy to run and use to file the necessary returns.” Others mentioned how much time it saves. One user states that “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.”

Summary

AvaTax ST
AvaTax ST
  • Starting Price
    • Contact for quote
  • Address Validation
    Yes
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Online, phone during business hours
  • Address validation
CCH SureTax
CCH SureTax
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Online, phone during business hours
  • Exemption certificate application
This software is produced by Wolters Kluwer, which 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 when it comes to audits and sales tax data. There are plenty of ways to tailor the software to your needs, including exemption and override configurations as well as nexus and location options.

The platform also includes:

  • Interactive reports
  • Exemption certificate collection and application
  • Address validation
  • Transaction tracking
  • Research data for audit trails
  • Calendar for preparation and filing of returns
  • Multiple integrations, including ERP
The integration module of CCH SureTax means you can connect it to existing systems your company uses. There are plenty of big names on the list of compatible applications, including Microsoft Dynamics, Magento, and Salesforce.

Pros & Cons

There’s a free demo to help you get a feel for the platform. The tax research options are excellent, and the reputation of the firm behind it is useful for audit defense. The integrations are another positive aspect, as using it with Microsoft Dynamics makes it easier to automate and track processes.

The software is flexible and allows document storage for different company accounts. It can sort and calculate effectively on various products from a range of industries. However, there’s no pricing structure available or a free trial. Moreover, CCH SureTax is purely for the U.S. and Canada, and phone support is only during business hours.

Pros

  • Tax research data
  • Multiple integrations
  • Flexible tracking and reporting

Cons

  • No free trial
  • Phone support during business hours only

What Customers Are Saying

CCH SureTax users say, “I like how CCH is easy to navigate and how it holds all of the files necessary to complete a return,” and “It’s cloud-hosted, and it is relatively fast.” Another review mentioned the range of uses thanks to integrations, commenting, “You can import/export depreciation schedules, autoflow tax documents and organize engagements for businesses and individuals.”

Summary

CCH SureTax
CCH SureTax
  • Starting Price
    • Contact for quote
  • Address Validation
    Yes
  • Tax Filing
    No
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Online, phone during business hours
  • Exemption certificate application
FileLINK
FileLINK
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone during business hours
  • Tax filing
FileLINK by Sales Tax DataLINK is a comprehensive platform that takes you from calculation right through to filing. The company focuses on tax technology, and its patented compliance platform has a reputation for catching errors at 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 as well as configuration for different industries and products. The plans are customizable and arranged after a consultation with 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, so your return gets more accurate and easier to file over time.

Features include:

  • Address validation
  • Tax calculator
  • Transaction tracking
  • Multiple jurisdictions
  • Nexus alerts
  • Jurisdictional error alerts
  • Detailed reporting
  • Monthly filing and improvement suggestions
  • Audit trail
  • Research tools
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.

Pros & Cons

FileLINK allows you to request a free demo before you sign up for a paid plan. The platform provides useful research tools to find out about nexus and other rules and rates in different jurisdictions. You’ll find that FileLINK integrates with many of your company’s existing systems, which will help streamline processes.

The software validates at invoice level before reporting, which provides an excellent level of accuracy. 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

  • Free demo
  • Useful research tools
  • Third-party integration

Cons

  • Phone support during business hours only

What Customers Are Saying

Once customers gain an understanding of FileLINK, they review it as one of the best sales tax software programs available. 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.” The time-saving aspect of the tool is also popular, with one customer writing, “I can research transactions in multiple states in one place.”

Summary

FileLINK
FileLINK
  • Starting Price
    • Contact for quote
  • Address Validation
    Yes
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone during business hours
  • Tax filing
GreenGST
GreenGST
  • Deployment: Web-based, cloud, SaaS
  • Customer service: 24/7 (live rep), phone during business hours, online
  • E-filing
GreenGST is described by Moglix, its creator, as a one-stop solution for compliance needs. Moglix is a company based in Asia that focuses on B2B commerce and works 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 gives you the capacity to generate accurate invoices, reconcile transactions, and generate reports. GreenGST is used for quick and easy e-filing and is particularly popular in India.

Features include:

  • Address validation
  • Exemption management
  • Tax calculator
  • Transaction tracking
  • Tax filing
  • Generate reports
  • VAT and Consumer Use Tax
GreenGST integrates with third-party applications, like ERP systems. Software that automates your processes is useless unless it’s secure, the platform uses 128-bit encryption and has award-winning data centers.

Pros & Cons

GreenGST features most of the services you need and would expect from one of the best sales tax software platforms. It takes you through tax calculation all the way to filing and generating reports. It works for several industries but has mostly been designed for digital procurement, manufacturing, and shipping in India.

There’s a live rep available 24/7 for support, as well as online assistance and customer service provided by phone during business hours. 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

  • Free demo
  • 24/7 live rep
  • Quick e-filing

Cons

  • Not clear which jurisdictions it covers

What Customers Are Saying

Although GreenGST doesn’t have a long track record, customers are still enthusiastic about the platform. One user states that “This software has been a lifesaver for me!” mentioning that the software fits their needs and doesn’t have many downsides.

Summary

GreenGST
GreenGST
  • Starting Price
    • Contact for quote
  • Address Validation
    Yes
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    No
  • Reports
    No
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: 24/7 (live rep), phone during business hours, online
  • E-filing
Intuit ProSeries
Intuit ProSeries Tax
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Online
  • Input guidance
Intuit is a financial services company specializing in tax and bookkeeping systems for individuals, small businesses, and accountants. Perhaps one of its most famous products is QuickBooks, which covers a broader range of accountancy tasks. Its ProSeries Tax software has the same ease of use and accountancy expertise, specifically focused on tax calculation and e-filing.

The platform is web-based and available in the cloud or as SaaS, which means you can access it from different devices and receive automatic updates. It allows you to track and manage the status of your returns. Plus, it has a portal that helps you collect documentation and link it to a client’s tax data. As Intuit ProSeries Tax is designed for accountants, it has the tools you’ll need for multiple businesses and clients.

With that in mind, this sales tax solution has options for invoicing and billing clients, too. Other helpful tools include the task scheduler, which comes with tax alerts, e-file acknowledgments, and the form guidance to assist with input.

Features include:

  • Tax calculator
  • Exemption management
  • Transaction tracking
  • Audit trail
  • Tax filing
  • On-screen help
  • Client billing options
  • Integration with other applications
ProSeries Tax works with several types of financial software, including Fixed Asset Manager, QuickBooks, and SmartVault. You can also download data directly from participating financial institutions.

Pros & Cons

Intuit ProSeries Tax has all the tools of the best sales tax software for accountants. As a specialist platform, it comes with a bit of a learning curve, so the on-screen help is particularly useful. The quick entry sheets also save time, as it’s easy to move between forms and entries.

This software is packed full of features that are useful for accountants with many clients. The free trial doesn’t give you access to e-filing, but you can get an idea of how ProSeries Tax works. However, several of the top features are only available on the Professional plan.

Pros

  • Free trial
  • On-screen help
  • Client management tools

Cons

  • Several features restricted to Professional plan

What Customers Are Saying

Customers are enthusiastic about many of the ProSeries Tax features; one claims, “It’s easy to use for beginners, very intuitive and offers multiple ways to enter data.” Others enjoy the little things that save them time, writing, “I like the ability to carry forward returns from previous years to keep the important information and data consistent in the records for each client.” Another was impressed by the cloud access, saying, “My practice is 100% virtual, so it’s nice to be able to work within the cloud and share with my team online.”

Summary

Intuit ProSeries
Intuit ProSeries Tax
  • Starting Price
    • ProSeries Basic
    • Basic 20: $450/yr
    • Basic 50: $769/yr
    • Basic Unlimited: $1130/yr

    • ProSeries Professional
    • Pay-Per-Return: $340/yr
    • Choice 2003: Contact for quote
    • 1040 Complete: $1900/yr
    • Power Tax Library: Contact for quote
  • Address Validation
    No
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Online
  • Input guidance
Sovos
Sovos Intelligent Compliance Cloud
  • Deployment: Windows, web-based, cloud, SaaS
  • Customer service: Online, phone during business hours
  • Multiple filing methods
The motto at Sovos is “Solve tax for good,” and its Intelligent Compliance Cloud shows it aims to do just that. Designed to be a complete solution, it has around 7,000 customers, many of whom are Fortune 500 companies. The platform not only helps minimize compliance risks but also centralizes the administrative tasks associated with sales tax filing.

You can install this software on your Windows device or access the web-based, cloud, and SaaS versions. It includes automatic updates, which provide the latest forms and filing methods. While transaction tracking allows for review and easy reconciliation, nexus configuration identifies your filing obligations and provides alerts for any missing data.

Several functions are automated, including data additions, corrections, and validations. Additionally, you can customize processes and the reports Sovos Intelligent Compliance Cloud generates. Of course, the crucial aspects of the software are the filing methods; you can use e-filing, electronic data interchange, and streamlined electronic return.

Features include:

  • Filing calendar
  • Transaction tracking and analysis
  • Reconciliation and adjustment
  • Address validation
  • Tax calculation
  • Audit trail
  • Tax filing
  • Exemption management
Sovos Intelligent Compliance Cloud has a flexible API, which means it works well with existing systems. You can also integrate an ERP or e-commerce platform, such as Magneto.

Pros & Cons

Sovos Intelligent Compliance Cloud holds its own as one of the best sales tax software thanks to its multi-jurisdiction approach across states and counties. It’s a fantastic platform for consolidating data in different formats from various sources. Plus, it covers the basics of tax calculation and transaction tracking well.

There are some extra benefits to being able to opt for different filing methods, and the integrations with SAP and ERP are particularly advantageous. Sadly, phone support is limited to business hours.

Pros

  • Multiple integration options
  • E-filing, EDI, and SER
  • Centralized admin

Cons

  • Phone support during business hours only

What Customers Are Saying

Clients are impressed with the features of Sovos Intelligent Compliance Cloud, especially the options, writing, “We do like the Data Editor module of Sovos sales tax software which allows tailored customizations to our particular lines of business.” There’s also praise for the basic function of the platform, which makes everything easier: “The best feature for us is the management and collection of exemption certificates from customers through Certificate Manager.”

Summary

Sovos
Sovos Intelligent Compliance Cloud
  • Starting Price
    • Contact for quote
  • Address Validation
    Yes
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Windows, web-based, cloud, SaaS
  • Customer service: Online, phone during business hours
  • Multiple filing methods
TaxCloud
TaxCloud
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone during business hours, online
  • Automated tax filing
TaxCloud is one of the best sales tax software of 2021 for state-subsidized compliance services. It takes advantage of the 25 states that provide compensation for tax filing to offer a no-charge service in those areas. It has over 28,000 online customers and continues to focus on simple processes and low-cost products.

There are two main options to choose from: Enhanced Services, where TaxCloud handles everything, or Core Services, which you can scale to fit your needs. The comprehensive package provides tax calculation, responses to state tax notices, indemnification in the member states, and filing and remittance. The selective version creates reports ready for you to file your returns.

The web-based, cloud, and SaaS platforms can support your business with any audit inquiries, help you track transactions, and manage exemption certificates.

Features include:

  • Address validation
  • Tax calculator
  • Transaction tracking
  • Audit trail
  • Exemption management
  • Tax filing
  • Integration with multiple applications
TaxCloud integrates with major third-party applications, particularly e-commerce sites like Etsy, eBay, Amazon, Shopify, WooCommerce, BigCommerce, Stripe, and Odoo. It also works with other bookkeeping and financial software, such as QuickBooks.

Pros & Cons

axCloud provides a free demo so you can see the advantages for yourself. Although pricing isn’t listed, it’s clear there are some affordable options here, as the platform uses state compensation to provide free services in 25 locations. Even if you pay in another state, the compensation savings are passed on to customers elsewhere.

The automated compliance package takes all the hassle out of sales tax from calculation to filing, which is ideal for small companies. The only downside is that you can’t get phone support outside of business hours.

Pros

  • Free demo
  • Affordable options
  • Integrations with e-commerce apps

Cons

  • Phone support only during business hours

What Customers Are Saying

TaxCloud customers are impressed by the price and scalability, writing, “I love not having to buy an expensive enterprise software solution. TaxCloud works seamlessly across multiple platforms and is designed to scale with my business needs.” Another user is pleased with the integration, stating, “TaxCloud works seamlessly with WooCommerce” and “We’ve used it for several months and found the integration effective, and the customer service helpful when we have a question.”

Summary

TaxCloud
TaxCloud
  • Starting Price
    • $20/month 
  • Address Validation
    Yes
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone during business hours, online
  • Automated tax filing
TaxJar
TaxJar
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone support during business hours, online
  • Transaction tracking
TaxJar is one of the best sales tax software systems for digital sellers. The company supports over 20,000 online merchants. It also appreciates that e-commerce brings the complication of nexus in multiple states and creates simple solutions.

TaxJar automates tax calculations and has an auto-file option to submit returns before deadlines. It uses exact addresses through the validation feature and provides an accuracy guarantee for TaxJar API users. Product classification isn’t an issue either, as suggestions are made for the right tax code.

Your company can use the platform to review sales and economic thresholds in different states as well as viewing nexus in new states. Alert systems will bring it to your attention, which means you don’t need to keep monitoring it. Recommendations and guidance are then provided for compliance in new areas.

Features include:

  • Tax calculation
  • Reports
  • Transaction tracking
  • Address validation
  • Exemption management
  • Audit trail
  • Tax filing
  • Integration with third-party applications
Since TaxJar is focused on online sellers, it makes sense that it should have a robust API and provide built-in integrations. Platforms for e-commerce integrations include Amazon, Magneto, Shopify, Walmart, WooCommerce, and Etsy. It also works with programs like QuickBooks and Salesforce.

Pros & Cons

TaxJar has a free demo that shows how easy it is to automate your sales tax processes with the software. If you’re still not convinced, there’s a 30-day free trial where you learn how the platform can benefit your company. The opening price point for TaxJar is affordable, which makes this ideal for smaller businesses.

For sellers, the number of integrations with e-commerce sites is a considerable advantage. eBay, Etsy, Amazon, PayPal, and many others are included. The one element lacking, though, is 24/7 support.

Pros

  • Free demo and free trial
  • Affordable basic plan
  • Multiple e-commerce integrations

Cons

  • Phone support only during business hours

What Customers Are Saying

Clients are enthusiastic about the time saved using TaxJar, with one writing, “For marketplaces like eBay and Amazon, sales are imported automatically, and you are able to set up auto-file for the states which you have Nexus and need to file.” Another user praises the number of integrations, stating, “It integrates with Walmart, Amazon, Shopify and most other major online sellers, which makes taxes for selling multichannel very easy.”

Summary

  • Starting Price
    • Starter: starting at $19/month
    • Professional: starting at $99/month
    • Premium: Contact for quote
  • Address Validation
    Yes
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone support during business hours, online
  • Transaction tracking
TaxRaahi
TaxRaahi GST Software
  • Deployment: Web-based, cloud, SaaS, Windows, Mac
  • Customer service: 24/7 (live rep), online
  • Automatic reconciliation
LegalRaasta is the company behind the TaxRaahi brand. Its aim is to make accounting easy using a platform that automates processes. It offers tools for goods and services tax (GST), income tax returns (ITR), and tax deducted at source (TDS). The TaxRaahi GST Software lets you register for GST and has a built-in capacity for generating invoices.

The main function of the platform is the GST calculation, as well as filing for GSTR 1 to 7 and tax payments. Additionally, the software provides inventory management and tracking for expenses, sales, and purchase orders. You’ll be able to get a clear overview of the numerous financial reports the system generates.

Features include:

  • Client document management
  • Detailed reports
  • GST calculation
  • Tax filing
  • Dashboard accessible from many devices
  • Integrations for importing documents
TaxRaahi GST Software is available as an installed product on Windows and Mac and as web-based, cloud, or SaaS. You’ll be able to import data from third-party applications such as your ERP, Excel, or SAP, which means you won’t need to start from scratch with data entry.

Pros & Cons

There’s a 60-day free trial, which is an ideal amount of time to get used to the software and see if it fits the bill. The free demo can also provide a taste of how it works without any commitment from your company.

The solutions from this software are specifically tailored to help businesses in India cope with GST. If you’re looking for a calculation tool that helps you manage client documents, issue reports, and file returns, it has those crucial features. It’s a country-specific jurisdiction, so if you’re based elsewhere, this won’t meet your needs.

Pros

  • 60-day free trial
  • Comprehensive GST processing
  • Client management tools

Cons

  • Country-specific jurisdiction

What Customers Are Saying

Many clients praise TaxRaahi GST Software, one writing, “I file my GST returns in less than 20 mins. It’s easy to use and doesn’t require any training.” Another customer is happy with the multiple tax uses for the platform, stating, “I can manage GST, TDS and ITR from one dashboard.”

Summary

TaxRaahi
TaxRaahi GST Software
  • Starting Price
    • Contact for quote
  • Address Validation
    No
  • Tax Filing
    Yes
  • Transaction Tracking
    No
  • Integrations
    No
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS, Windows, Mac
  • Customer service: 24/7 (live rep), online
  • Automatic reconciliation
Vertex-Cloud
Vertex Cloud
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone during business hours, online, 24/7 (live rep)
  • Tax calculation for thousands of jurisdictions
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.

Features include:

  • Applied rates for thousands of US tax jurisdictions
  • International solution with VAT handling
  • Tax calculations
  • Address validation
  • Audit trail
  • Transaction tracking
  • Reports
  • Tax filing
  • Exemption management
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. If you’re a small business, you’ll get the right tools for the job. Accountancy firms can also use this system with specific client management features and an online dashboard for a clear overview of different projects.

Pros & Cons

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 the complicated compliance issues, which means this software can fully automate your tax process.

The reporting tools give you excellent visibility of your transactions, which can help you make better decisions for your business. You can view detailed transactions and summaries, error reports, and several other options. However, the downside to this platform is the lack of information about pricing.

Pros

  • 24/7 customer support
  • Automated tax process
  • Over six reporting options

Cons

  • No pricing information

What Customers Are Saying

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.” Others are impressed with the customer support; one writes, “Most importantly, customer support is there to help you out. They understand that not every business is run the same, and they take the time to work with you so you can accomplish the desired results when you have exceptions.”

Summary

Vertex-Cloud
Vertex Cloud
  • Starting Price
    • Contact for quote
  • Address Validation
    Yes
  • Tax Filing
    Yes
  • Transaction Tracking
    Yes
  • Integrations
    Yes
  • Reports
    Yes
Features
  • Deployment: Web-based, cloud, SaaS
  • Customer service: Phone during business hours, online, 24/7 (live rep)
  • Tax calculation for thousands of jurisdictions

How We Chose the Best Sales Tax Software

Sales tax software helps calculate what a company owes, keeps track of complex rules and regulations, and automates the process. The best solutions take care of the hard work, leaving you to focus on your product or service and customers. However, for companies large and small, finding the right platform is a challenge. As a crucial aspect of your business, it’s essential you can put your trust in the software. We’ve collated and evaluated some of the top brands in the industry to streamline the process for you. Below are the criteria we used to determine the best sales tax software of 2021.

Sales Tax Features

You’ll find that most providers have similar features, although not all of them offer the same benefits. When choosing the best sales tax software for your business, you’ll want to make sure it covers the components you need. Here are a few features to look for:
  • Address validation
  • Exemption certificate tracking
  • Tax calculator
  • Transaction tracking
  • Tax filing
  • Automatic invoice application

Integrations

Some accountancy software types will have their own module, whereas others will integrate with a stand-alone platform. The best sales tax software should allow you to adjust the functionalities of your platform and use it with third-party applications. Some integration options to consider are:
  • Ability to work with accounting systems
  • Integration with ERP apps
  • Connection with inventory software

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 what your sales tax bill was and when it was paid. Some features include:
  • Sales tax summaries
  • Details of taxable amount and taxes paid
  • Filters for date range, etc.
  • Detailed reports with clear terminology

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. There are thousands of different sales tax rates in the U.S. alone, and international sellers have even more to consider. The seller will need to pay the correct rate, which depends on the product and the location of the buyer.

Many locations have varying thresholds for when to pay sales tax, and once triggered, those will set different deadlines for payment. Sales tax software keeps track of obligations when sales are nearing a threshold and has alerts or automated processing for the different deadlines.

Automating the process makes it faster to reconcile, check exemptions, and calculate taxes. Since the software typically tracks transactions and files returns too, 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 reputation of the research tools used in the software can help any defense required in those situations.

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.

Once you’ve added the necessary inputs, your sales tax won’t require too much maintenance. For cloud platforms, that’s especially valid, as the system will automatically update any changes or new requirements.

Benefits of Sales Tax Software

No matter the size of your company, small businesses, accountancy firms, and global enterprises can benefit. Sales tax software has several advantages that will assist you with tax compliance:

  • Meeting your deadlines: Most platforms have an alert system or automated processing. You’ll be able to keep track of deadlines from the dashboard and schedule returns to file them on time. This could save you money on penalties or help you out with tax deductions, as you’re always paying the updated rate.
  • Simplifying tasks: Sales tax tasks are complicated and could keep an accounting team busy for hours. Instead of repeating complex tasks like researching rates, filling in forms, or calculating and reconciling, your team can simply monitor the results.
  • Saves time: When a task is made easier, it often means it’ll also take less time. That’s certainly the case with using sales tax software. Hours of work can be completed in minutes, which means your finance department or accounting firm will have more time to spend on other tasks or communicating with clients. Saving time saves money, improves morale, and makes your business more effective in key areas.
  • Accurate filing: With potentially thousands of jurisdictions to keep track of, it’s a challenge to apply new changes and exemptions. Since sales tax software updates the rules and rates regularly, you’ll know your returns are accurate and ready for an audit if necessary.
  • Compliance: Manual filing leaves a lot of room for error. That could mean missing a deadline, not spotting a new obligation because a threshold has been reached, or having difficulty making accurate calculations. Sales tax software tracks transactions and generates detailed reports. You’ll know what was filed and how much was paid and when, thereby keeping your company compliant.

Must-Have Features of Sales Tax Software

When looking for the best sales tax software in 2021, 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 especially 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 for you.
  • 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. As well as summaries of transactions and returns, the platform should give you in-depth reports.
  • 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, then finding one that communicates with it is essential to smooth operation and easy tax application.

The Cost of Sales Tax Software

As you’ll have gathered from the information above, there are various price points for this software. Some give you free access through state compensation schemes, others might be pay per usage, while many have a monthly subscription fee. However, each pricing plan will give you a different level of access to the features.

It can be somewhat trickier to understand the cost of sales tax software, as many companies only provide the prices and plans after a consultation. On top of that, there are numerous add-ons and multi-system platforms that give you additional features and tools for other types of tax calculation and processing. In that case, a higher monthly fee might get you more benefits.

The ideal way to know if a program meets your needs while you discuss prices is to take advantage of a free demo or trial. Once you know how much time and effort it’ll save, you’ll know its true value. From our list, you can see that prices start as low as $19.99 per month and can rise to as high as $1,900 annually.