The 7 best Amazon FBA Tax Softwares

For many, the topic of sales tax is one of the less pleasant duties in the company’s everyday life. Fortunately, there are many online service providers available to the modern business manager that can help with the management of tax obligations. In this article, we will introduce you to the best tax software currently available.

Sales tax reporting software for Amazon FBA

If you sell goods under the Amazon FBA program, you are obliged to pay VAT. Especially entrepreneurs who export large quantities of products to many different countries like to use tax software to help them with their VAT.

The corresponding online service providers can be easily connected to the Amazon FBA account as well as to the seller’s accounting software, thus forming the perfect interface between the tax office and the entrepreneur.

Most tax software is automated. This means that tax-related tasks such as the registration of the company with the tax office, advance sales tax returns, the preparation and submission of sales tax returns and the payments linked to them can be carried out automatically by the online service provider. In addition, the tax software supports the company in communicating with the tax authorities. 

There are now countless providers of so-called Amazon FBA control software. It is often difficult to identify the best product at the best possible price among the many different prices, functions and working methods. This list should help you with this problem. Here you will find the seven best Amazon FBA control software currently available on the market.

1. hellotax

The first thing to mention is of course the tax solution for Amazon merchants called hellotax. The online tax software offers customers the best overall package at the absolute best price. The registration with the tax office, the advance sales tax returns, the creation of the sales tax return as well as the communication with the tax office is automated and handled with hellotax. This saves the entrepreneur a lot of work and time.

hellotax is compatible with Amazon and will be expanded in the future to include other e-commerce platforms such as ebay. The user-friendly interface guarantees a perfect overview of your company’s financial and tax situation.

The hellotax tax letter inbox works with an AI software (artificial intelligence). This is constantly learning and can therefore support you in your tax tasks regarding communication with the tax office. If you prefer to work with a physical tax expert, you have the possibility to get competent advice from the hellotax tax consultants.

The basic hellotax software is completely free of charge. Additional features such as automated registration of your company with the tax office as well as communication with the state authorities can be easily added to your company’s existing hellotax subscription.

2. Avalara

In second place among the best tax software, Avalara is one of the most used online service providers on the market. The success of the software is mainly due to the wide range of different features and the high flexibility of the service provider. Avalara offers the automation of all tax-related activities. This means that from the registration of the company with the tax office to the submission of the VAT return, all steps are automatically handled by the software.

However, for an additional charge, it is also possible to request processing by a tax expert. In the area of employees and customer support, Avalara positions itself as the clear market leader.

The online software is compatible with all major e-commerce platforms as well as accounting software and can be easily connected to your Amazon FBA account via ID entry and security code. 

The cost for the basic package is 49,- USD per month. The subscription can be extended with additional features for an additional charge. The amount is debited monthly or annually from the company’s account. For interested entrepreneurs who would like to test Avalara before purchasing, a 60-day free trial subscription is available.

3. TaxJar

TaxJar is probably the most well-known tax software on the market. Renowned companies such as Coca-Cola or Microsoft make use of this online service provider themselves. The provider, which specializes primarily in e-commerce, was involved in the automation of tax processes at an early stage.

TaxJar scores especially with its fast, uncomplicated functionality. Although the tax software does not offer an excessive number of additional features, it convinces with a very intuitive user interface that anyone can quickly find their way around, as well as with very good compatibility with the usual sales platforms and accounting programs.

TaxJar offers three different packages. The basic package for 22,- USD per month, the professional package for 105,- USD per month and the premium package, whose price can be negotiated individually with TaxJar. Additional services can be flexibly added to the respective subscription – for example, TaxJar charges a fixed amount of 30,- USD per state for the VAT return.

4. SimplyVAT

SimplyVAT belongs to the advanced sales tax platforms, as some practice is required to use it successfully. However, for those who familiarize themselves with the system, SimplyVAT offers all the freedom and setting options that one could wish for in a tax software.

SimplyVAT works in over 30 countries inside and outside the EU. Apart from the free VAT audit that SimplyVAT offers every customer, the online service provider also provides many tips and learning opportunities around the topic of taxes.

SimplyVAT is one of the more expensive tax softwares in this list. The service provider takes care of the VAT registration for an allowance of 470,- USD. For the automation of the tax processes (VAT declaration, supervision of the payment of taxes, etc.) SimplyVAT has the respective company pay 240,- USD per year.

5. Taxify

In 5th place on our list is Taxify. The web portal specializing in e-commerce is similar to TaxJar due to its ease of use. Taxify focuses on a fast, uncomplicated and intuitive use of its own service. In addition, the software always gives you important tips and tries to minimize your tax amounts as much as possible.

The automation of tax-relevant processes also plays a decisive role with Taxify. The online service provider automatically collects the amount of the corresponding VAT for every order you receive and then transfers it to the tax office in bundled form, together with the VAT return. Taxify can automatically recognize over 14,000 tax jurisdictions in more than 60 countries and automatically adapt to the regulations that apply there.

In addition to the very intuitive operation of the program, Taxify also convinces with excellent compatibility with most virtual marketplaces such as Amazon and Ebay. A major plus point of the online provider is also the flexibility of the configurable packages, which build on each other and thus offer great advantages, especially for growing companies.

The Taxify Standard package costs $47, but limits your transactions to 1,000 per month. Pro membership costs $247. A free 30-day trial is available. Taxify also offers a credit service to help enrolled businesses pay their sales taxes on time if they lack liquidity.

6. Lovat

Lovat is the sixth tool in our list. Exactly like all the software just mentioned, Lovat also takes care of automating the tax processes (registering your business with the tax office, as well as the advance VAT return, the preparation of the VAT return and the payment of the corresponding amount to the tax office). 

Lovat operates in 57 different countries within and outside Europe. The online platform employs its own tax experts in each of these countries, who help customers with problems with the software and also act as advisors for a specific country. Lovat therefore scores above all with a very good, widely networked customer service.

Three different packages are offered: The Startup package for 40,- USD per month, the Standard variant for 77,- USD per month and the Premium package for 5400,- USD per month. The payments of the contributions are possible monthly or annually. A free trial version is available for those interested.

7. A2X Accounting

The list of the seven best tax software for Amazon sellers ends with A2X Accounting. The software is still considered an insider tip, but could gain more and more popularity in the future. 

However, a warning beforehand: A2X Accounting does not file tax returns automatically. The online service provider only offers itself as a tool for the quick and secure preparation of VAT returns.

A2X breaks down your sales by country, giving you detailed information on the respective tax regimes and rates in the different states, giving you a good overview of the financial and tax situation of your business.

Depending on the size of your company and the amount of your turnover, the price of A2X varies from 19,- USD to 139,- USD per month. It is possible to try the tool for free for a limited time. For companies that operate globally and combine A2X Accounting with accounting software, the tax service provider can be a great help despite the lack of automation.

Summary

For Amazon FBA participants, the choice of tax software is not easy, there are many different offers that hardly differ from each other in the first moment. After thorough research and a first pre-selection, every entrepreneur should make use of the free trial versions of the different service providers to find the perfect Amazon FBA tax software for his business.