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The Best Tax Preparation Software for Amazon Businesses in 2023

Are you an Amazon seller? If you're a seller and would like to learn more about the best sales tax automation systems available, then ...

Best Tax Preparation Software

Are you an Amazon seller? If you're a seller and would like to learn more about the best sales tax automation systems available, then this guide is for you.


A lot of things happen constantly when operating an online store, like managing inventory, properly managing PPC advertisements, completing orders, and dealing with customers. On the other side, by taking care of the majority of these responsibilities, mostly through FBA, Amazon has made life much simpler. On behalf of a seller, this massive retailer also collects taxes. The seller must decide which tax is to be collected, though.


Sales tax is a reality in your life whether you sell online or offline. We are aware that most of you despise this aspect of your work. But it's just as significant. It can be challenging for the sellers to keep up with the various aspects involved in tax filing because the sales tax regulations are subject to change. The tax laws of both the state/country in which they live and the state/country in which they are selling or owning the business should be familiar to sellers.


Giving away some of one's hard-earned cash may never be enjoyable, especially for single business owners who handle everything on their own. For sellers who wish to monitor their sales tax balance and automate their tax returns using their Amazon seller central accounts, there are a ton of options available.


You have a wide range of possibilities when looking for Amazon sales tax software. Finding the best one that is dependable and automates the majority of your activities is necessary. So, based on the experiences of other sellers, we are going to list the best 5 Amazon seller tax software alternatives in our article.


Quick Guide:





A2X Accounting



1. TaxJar

TaxJar is one of the greatest solutions if you sell on Amazon FBA and want to automate your tax file. You may immediately connect your Amazon account with the program thanks to them. The program allows you automatically file taxes for the specified state and maintains track of the sales tax you owe to each state.


The simplicity of TaxJar allows you to save time. It can be difficult to remember the deadlines because various states frequently have distinct tax filing procedures. You may automatically file sales taxes for different states using Taxjar.


TaxJar supports a number of e-commerce platforms in addition to Amazon, including eBay, Shopify, Stripe, PayPal, etc. TaxJar still lets you export sales data in a CSV file even if it doesn't support the platform you're selling.




You can import data from any three eCommerce platforms, including Amazon and Shopify, and they offer a basic package that starts at $19 per month that includes services like basic email and chat support. Depending on the size and needs of the organization, they provide more premium options. However, beginners can get by with the basic bundle.



2. Avalara

Avalara is a tax compliance tool that makes it simple for you to file tax returns and calculate your taxes. Additionally, Avalara provides manual services, where a staff member uploads your tax returns on your behalf. All you have to do is pay a little extra to have the staff examine them.


Their remedies include of:

·       Tax on goods and services

·       Tax on communications

·       VAT, or value-added tax

·       Use tax and sales tax

·       Excise duty

·       Hotel tax


Tax Preparation Software for Amazon

Avalara is used by vendors on several e-commerce platforms. This program can be used for managing documents, preparing tax returns, and calculating taxes, among other things. Avalara is a great choice for Amazon sales tax software if you want to make filing and reporting your taxes simpler. Avalara is compatible with all Amazon Marketplaces. Additionally, it works with other e-commerce websites including Etsy, Walmart, and eBay.


3. SimplyVAT

If you sell in nations like the UK, France, Germany, or Spain, you must register for VAT, or value added tax. For businesses looking to expand abroad, SimplyVAT is an Amazon tax administration tool that manages VAT compliance solutions.


Online vendors who do business with customers in other EU nations must register and adhere to VAT regulations. You can quickly determine how much VAT you owe on each invoice and overall with the help of SimplyVAT. Rates may vary by nation and perhaps even within a nation for the same goods. Your time is saved using SimplyVAT, and these benefits are hardly noticeable. SimplyVAT can be incredibly helpful for Amazon sellers given the variety of restrictions available.



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4. Taxify (Sovos)

Online retailers and e-commerce companies can use Taxify, a sales tax automation tool. To submit taxes quickly, you can discover forms that are ready to sign and print. They facilitate connection with a wide range of applications, including point-of-sale systems, marketplaces, shopping carts, and more.


Taxify's administration is done via a web interface, although they do provide an Amazon plugin that enables merchants to access transactional data.


Taxify (Sovos)

In some ways, Taxify is similar to TaxJar in that it enables you to collect the correct sales tax for each order and automatically files your tax returns without any input from you. With basic, standard, and premium plans costing between $47 and $247 per month, they provide three different packages.


Overall, Taxify is a great option for managing Amazon taxes since it offers high-quality automation, value, and scalability.


5. A2X Accounting


A2X Accounting is the last tax preparation program on the list. While it does assist you in tracking your Amazon transactions, this sales tax application does not automatically file your taxes. With the use of this instrument, you'll be able to obtain all the necessary data, including accounting details, sales tax and charge information, and others. You can file your tax returns using A2X in conjunction with Xero and Quickbooks.


A2X Accounting

Depending on the size of your company and sales volume, A2X charges costs for Amazon sellers that range from $19/month to $139/month. If you want to maintain track of the taxes you owe across various states and nations while utilizing accounting software like Xero, A2X is a possible alternative.



The majority of sellers struggle greatly with taxes. But once you have the fundamentals, other things may be made simpler. If you're managing alone, it can be difficult to keep track of taxes, customs duties, and other things. When you are overloaded with things, there is a great likelihood of human error. 

To complete these responsibilities for you, there are many tax management solutions available. To focus on the other facets of your business, such as product promotion and listings, you must automate processes like tax filing. 


Read More:

Step-by-Step Guide for Individual Sellers on Amazon

Top 3 Repricing Techniques for Retailers and Brand Owners

How to Handle an Amazon Seller Central Account Suspension

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