Best Tax Software for Amazon Sellers in 2023
As an Amazon seller, it’s fascinating to see your business grow. But at a certain point each year, your calendar notifications remind you about filing your taxes. The major types of taxes Amazon sellers pay are sales tax, income tax, and VAT. By law, Amazon automatically calculates, collects, and remits sales taxes for you in most states if you are a Professional seller. However, you’re still liable for reporting your sales taxes and correcting discrepancies.
Since not all sellers understand the tax code nuances, tax software can be an excellent solution for many of them. It makes tax filing far more efficient and simplifies this complicated task. This post guides you through 6 popular tax seller tools.
Hellotax is a tax compliance service with personal customer support founded by Amazon sellers in 2016 in Alicante, Spain. It offers an extensive service package at the best price. Hellotax is an excellent solution for sellers operating in Europe. The company provides a user-friendly interface and self-learning AI-powered tax letter inbox feature supporting your tax tasks. You can select between AI-based services and a personal physical tax consultant. Hellotax is compatible with Amazon, eBay, Shopify, WooCommerce, and other e-commerce platforms.
Features. Hellotax automates registration with the tax office, advance sales tax returns, creation of the sales tax return, and communication with the tax office. The One-Stop-Shop feature takes care of all your EU VAT duties in one select country. EU VAT Registrations and EU VAT Returns feature provides for sellers operating in Europe registration for VAT and consistent filing of VAT returns. VAT software solution puts VAT compliance on autopilot, while the Local Accounting Services feature provides individual bookkeeping and compliance services locally.
Pricing. Hellotax offers EU VAT compliance with no hidden costs. The basic «New Seller» subscription package costs 39€/month, the advanced «Established Seller» costs 99€/month, and the «5 Countries Pack» is 399€/month. The company also offers some additional services.
TaxJar is one of the most popular seller tax tools. The company specializes in the automation of e-commerce tax processes. It was founded in 2013 and, after growing to over 25,000 customers, was acquired by Stripe in 2021. TaxJar’s high-tech cloud-based platform automates sales tax compliance for more than 20,000 businesses. Alongside Amazon, TaxJar is compatible with many e-commerce platforms, including eBay, Shopify, etc. If you sell on a platform not supported by TaxJar, you can export data in a CSV file.
Features. TaxJar offers easy-to-understand, convenient functionality. The tool is compatible with the majority of sales platforms and accounting programs. The software is straightforward to use. You can sync your Amazon account directly with the platform and keep track of your taxes. You can also automate tax filing in selected states. TaxJar offers the Sales tax compliance platform, Real-time calculations, Filing and remittance, Nexus insights, Sales tax reports, and Integrations features.
Pricing. TaxJar has two subscription plans: «Starter» for $19/month and «Professional» for $99/month, with different features based on your business needs. You can switch between the plans or change to an annual plan at any time.
Avalara is of the most used tax compliance softwares because of the wide range of offered features and the high service flexibility. Headquartered in Seattle, Avalara has offices across the U.S. and internationally in Canada, the U.K., Belgium, Brazil, and India. The company works with businesses of all sizes to get tax compliance right. Avalara automates all tax-related activities, ranging from the company's registration with the tax office to filing the VAT return. However, you can also receive consultancy from a tax expert. The tool is compatible with Amazon, Etsy, Walmart, eBay, and other platforms.
Features. Avalara provides cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, GST, excise, communications, lodging, customs duties, and other indirect tax types. Their products and services include United States sales tax compliance, Cross-border sales tax compliance, VAT compliance, Electronic E-invoicing under GST, and E-way Bill solution.
Pricing. Alavara’s basic subscription plan costs $19/month (for returns), and the standard plan costs $83/month (for returns and calculations). The subscription can be extended with additional features for an extra charge. Avalara also offers a 60-day free trial.
SimplyVAT is an advanced sales tax platform that requires some knowledge and time to familiarize with its functionality. However, it is flexible and offers many valuable features. SimplyVAT is a UK-based company founded in 2014. It works in over 30 countries inside and outside the EU. This company is a perfect solution for sellers with customers across EU countries who must register and comply with EU VAT requirements.
Features. SimplyVAT offers registering for VAT abroad, free VAT audit, managing VAT returns, tips, and consultancy regarding any VAT questions you may have. Company services include managing Amazon VAT, One Stop Shop (OSS) scheme, Import One Stop Shop scheme, Non-Union OSS scheme, applying for an EORI number, VAT Consultancy, Brexit consultancy, and EU VAT Hub.
Pricing. SimplyVAT’s prices depend on your business, and you must contact them for a quote to get your price. To give you an idea of their price level, the one-time VAT registration will cost you $470, and the automation of the tax processes, including VAT declaration and taxes management, costs $240/year.
5. Taxify by Sovos
Sovos has more than 2,400 employees and supports thousands of customers in more than 70 countries. Taxify is a tool created by Sovos. Its focus is an automated and easy-to-use interface. They offer ready-to-sign and ready-to-print forms to help you file taxes effortlessly. Also, the platform provides tips to minimize your tax payments. Taxify is compatible with major online sales marketplaces like Amazon and eBay.
Features. Taxify works through a web portal, but they provide a plugin for Amazon; therefore, sellers can access transactional data. Taxify automatically collects VAT for every order and sends it to the relevant tax office together with the VAT return. The tool automatically provides compliance with more than 14,000 tax jurisdictions in over 60 countries. It offers VAT, fiscal reporting, and tax information reporting software. Their features include VAT, Sales and use tax management, Shipping and distribution compliance, and Tax and regulatory reporting.
Pricing. Taxify’s «Starter» subscription plan costs $47/month, the «Standard» plan is $97/month, and the «Premium» plan is $247/month. The company offers a 30-day free trial.
6. A2X Accounting
A2X Accounting was founded in 2014 by e-commerce business owners. The company’s customers have processed over 700 mln orders and reconciled over 3 mln settlements. This sales tax software doesn’t fully automate your tax filing. Its plus is that it helps you track all data about your Amazon sales tax, fees, and accounting information. A2X supports businesses selling on Amazon, Shopify, BigCommerce, eBay, Etsy, and Walmart and accounting in Xero, QuickBooks, or Sage, with more integrations to come.
Features. A2X sorts your sales by country and provides detailed data on the tax regulations and rates in the different states, with an in-depth tax overview of your business. The company offers expert services to manage requests specific to the sales platform you sell on. You can combine A2X with any accounting tool like Xero to automate your tax filing.
Pricing. A2X offers a «Mini» subscription plan for $19/month, a «Basic» plan for $39/month, a «Professional» plan for $69/month, and an «Advanced» plan for $99/month. A free trial is available.
For many Amazon sellers, taxes are a boring but inevitable obligation. Luckily, seller tools help automate tax filing.
Knowing your taxes for profitability purposes is vital for your business when researching profitable products. Seller Assistant App allows you to calculate your profitability effortlessly. It’s a powerful product research extension for Amazon sellers engaged in online arbitrage, wholesale, and dropshipping.
Seller Assistant Аpp is an all-in-one extension incorporating features vital for product research. Advanced IP Alerts can immediately tell you if a product has any sales restrictions or has led to problems with account health in the past. It combines an FBM&FBA profit calculator, Quick View, Stock Checker, and Restrictions Checker in one tool.