When you think about starting an Amazon business, what comes to mind? Making money! But selling on AMZ isn’t all about making money. Sometimes, you’ll have to remit some of this money. This is because businesses have to pay taxes. Amazon businesses are no different. So, at one point or the other, you will have to report your revenue. How? By paying Amazon seller taxes.
In the U.S., Amazon seller taxes are due every March 15th. Personal taxes, on the other hand, are due every April 15th. You run a risk of losing your business if you steadily default in paying tax. Tax is a complicated subject and no one enjoys talking about it. As a new or existing seller, collecting and remitting taxes may be difficult for you.
You can choose to navigate the complexities of this subject, or you can use Amazon tax software. There are several Amazon tax software available on the market right now. Most of them claim to be the best, but they’re not as effective as you would expect them to be. We intend to save you the stress of trying out several ineffective software. Hence, we have carefully curated this list of the best Amazon tax software for 2022.
Related: Amazon FBA Taxes – Beginners’ Basics
Best Amazon Tax Software For 2022
If you’re reading this, chances are that you’ve spent some time scouring the internet for Amazon tax software. If you have, then you must have come across this software a couple of times. This tool is popular for many reasons. But the major one is its ability to automate your tax processes. All you need to do is sync your account with the tool and you’re good to go.
As soon as you enter all the relevant information, TaxJar takes over. Are you filing taxes for more than one state? That will be done for you according to the states’ deadlines. Are you having trouble choosing the correct product tax code? The system suggests product codes automatically, so you don’t have to hunt for them.
If you’re not selling on AMZ, eBay, Shopify, Stripe, or PayPal, TaxJar still lets you export your sales data in a CSV.
The software is available at a budget-friendly price. There are two pricing plans available: the starter plan, and the professional plan. The former costs $19/month, while the latter costs $99/month. Scared to invest in this tool? There is a 30-day free trial available. So, you can try it. If it meets your needs, then go for it.
Not all tax software is flexible enough to help you file any kind of tax. But, this tool is flexible. It works great for Amazon seller taxes but it can also help you file taxes across other platforms.
It can be difficult to deal with increasingly complex sales tax obligations. Especially if you do not have the time, money, or resources to deal with them. This software is not just some tool that works with AI. Behind it is a team of experts who are available to manage any issues you may face regarding filing your taxes.
Regardless of the size of your business, this tool has you covered. They also offer personalized services to meet your needs. These services are uniquely designed for your business.
Tax laws are constantly changing, but with Taxify, you can always be on top of your game. The tool also comes with a feature that allows you to import your data. This will make it easier for you to do your filings right. You can follow up the filing process or have the team manage it on your behalf. If you choose the latter, you can simply get notifications of how the process is going.
There are three plans available – starter, standard, and premium plan. The plans cost $47/month, $97/month, and $247/month respectively.
If you would like to file your taxes at the snap of a finger, then this is the perfect tool for you. This tool is a tax compliance software that allows you to fill in your data and file your taxes. You can choose to run the process automatically. Or if you want to manage the process yourself, you can choose the manual option.
All you have to do is to fill out the relevant fields. Then hand over the form to their experts to have it verified before it is submitted. If you have any doubts as regard tax laws and regulations in various countries, this is an ideal solution.
Among other things, Avalara allows you to file a wide range of taxes. These include:
- Goods and Services Tax (GST)
- Communications Tax (CT)
- Value Added Tax (VAT)
- Excise Tax (ECT).
Furthermore, it can be used for other platforms as well. So if you sell across platforms like Walmart, eBay, and Etsy, you will find this tool handy.
Worried about pricing? It’s nothing you’ll have to break your bank for. Avalara plans range from $50/month upwards.
A2X isn’t at the top of our list, but it remains a popular choice among sellers. The tool may not match up to your expectations compared to the others. This is because you will have to file your taxes yourself, while other software allows you to automate the process. But, this is not a problem. The tool offers a ton of other outstanding features to ensure you stay on top of your game.
Unlike others, this tool comes with a feature customized for each eCommerce platform. Whether you sell on Amazon or not, this feature will ensure that you provide the correct information. If you are a greenhorn where tax is concerned, there are experts to assist you.
You may not be able to automate the processes directly in A2X. But you can integrate this software with other tax-filing tools. When it comes to pricing, you don’t have to go all the way at first. You have four options to choose from: the Mini plan at $19/month or the Basic plan at $39/month. When you get comfortable, you can try out the higher-priced plans. You can choose the professional plan at $69/month or the advanced plan at $99/month.
You can try out any of these plans on a free trial before settling.
If you sell products in countries like the U.S., France, Germany, or Spain, you need to collect VAT. SimplyVAT provides VAT compliance solutions through its Amazon tax software.
You can calculate the total amount of VAT you owe. Just enter each invoice number into SimplyVAT. Beyond this, the software offers you a VAT compliance check immediately you choose to use it.
The tool also works across other countries. The software will file your taxes based on a specified timeframe. The VAT is calculated using the fixed rates for whatever country you’re in. You can use the tool on a one-off basis or choose any of the available plans.
For the latter, you pay $470. The price of the plans varies based on some factors.
Whether you sell online or in-person, sales tax is an integral part of doing business. Sadly, most business owners resent this aspect. But its importance cannot be overlooked. Keeping up with various factors involved in the tax filing process may be difficult. This is because of the varying laws involved.
Hence, sellers who take care of everything on their own may find it difficult to report their revenue. There are a ton of Amazon tax software options available to help you automate this process. It may be difficult to choose one. But, this should no longer be an issue if you read to this point.
Now that you have a good idea of the best Amazon tax software for 2021, you can go ahead and remit your Amazon seller taxes seamlessly.