Tax Compliance Software
These products won a Top Rated award for having excellent customer satisfaction ratings. The list is based purely on reviews; there is no paid placement, and analyst opinions do not influence the rankings. Read more about the Top Rated criteria.
Tax Compliance Software TrustMap
TrustMaps are two-dimensional charts that compare products based on trScore and research frequency by prospective buyers. Products must have 10 or more ratings to appear on this TrustMap.
Avalara AvaTax connects to the software that businesses already have and delivers sales tax decisions based on precise geo-location in more than 12,000 taxing jurisdictions in the U.S.
Vertex combines tax research with technology to improve tax accuracy and consistency on sales and purchase transactions. The automation aims to support high volume and complex transactions at speed and scale to streamline internal processes and improve audit performance. Integrations…
ADP SmartCompliance is a tax and regulatory compliance platform for midsize or larger companies using an ERP or non-ADP platform for HR and HRMS services.
Tipalti is a cloud-based platform that enables mass payment management and execution to networked partners (e.g. affiliates, suppliers, vendors, crowdsource, freelancers, and content publishers) across international borders. Payment can be in any local currency, through a variety…
TaxJar offers automated sales tax reporting and filing. According to the vendor, capabilities include: Accurate, Detailed Sales Tax Reports: TaxJar’s local jurisdiction reports show sales and sales tax collected not only for each state, but for local jurisdiction (counties, cities,…
Canopy is tax practice management software from Canopy, Inc., with accounting functionality designed for tax professionals and their customers. It includes tax resolution analytics, automatic IRS form population, client management, transcript delivery and reporting, custom service…
Tax software for VAT/sales tax filing. LOVAT platform collects all tax data across any sales channel and files VAT returns in a minute. Accurate VAT calculation, tax due reminders, automatic filing, free data storing with the real-time support of tax expert team available. LOVAT…
Intuit ProConnect Tax Online is cloud-based professional tax software. It integrates with QuickBooks and includes a client portal so that clients can input their tax data online. ProConnect has a pay-per-return pricing structure.
Thomson Reuters ONESOURCE is a portfolio of tax and accounting technology for corporations designed to help users boost collaboration with departments and partners and ensure seamless tax compliance no matter where a company does business.
London-based Paddle offers an ecommerce and subscription management solution for software companies seeking a streamlined demonstration of their services and centralized management of their different service levels and cloud-based offerings.
Middesk is a business intelligence (BI) software used to onboarded clients working in three primary verticals — Fintech, Credit Reporting, and Business Marketplaces. Middesk claims to empower compliance teams with engineering resources who otherwise would not have the resources available.…
The Sovos Intelligent Compliance Cloud includes tax automation capabilities, including sales and use tax, 1099 reporting, ACA reporting, VAT solutions, and FATCA compliance.
Transaction Cloud is a reseller solution for SaaS companies, to handle payments, sales tax/VAT/GST compliance (collection, filing), subscription management, recurring billing, and invoicing, that can be used by companies to simplify their payment, tax, accounting and risk management…
CCH SureTax (formerly Sales Tax, now owned and supported by Wolters Kluwer), is a tax compliance application available online or on-premise, supporting tax rate calculation and form filing.
Taxamo Assure, by Vertex (acquired May 2021), including solutions that cover VAT, GST, and US sales tax, and are tailored to individual business needs, boasting having managed billions of transactions globally. The solution can be configured to suit the user's global commercial…
SAP Responsible Design and Production is a software solution that enables the user to calculate extended producer responsibility (EPR) obligations, plastic taxes, and corporate commitments to optimize material choices.
CIC Plus is a benefits administration and payroll software solution. It is positioned specifically to help employers with providing a payroll and healthcare benefits management solution for its employees.
Wolters Kluwer offers Cantax, a tax preparation software available in Canada for tax preparation firms.
SAP Tax Compliance is a global tax management platform for enterprises supporting tax calculation, validation, tax transfer management, and advanced tax reporting.
British company VATBox offers a VAT recovery and governance application.
TaxCloud is a cloud-based tax calculating, analyzing and compliance application from FedTax (or Federal Tax Authority) headquartered in Connecticut.
Fast Enterprises headquartered in Centennial offers GenTax, a commercial of the shelf (COTS) is an integrated tax processing platform designed to support agencies.
Fast Enterprises headquartered in Centennial offers FastUI, an integrated unemployment insurance tax and benefit administration platform for state agencies.
INTRASOFT International headquartered in Luxembourg offers the ESKORT Compliance Solution, a tax audit and compliance suite.
What is Tax Compliance Software?
Tax compliance software provides organizations with accurate local and federal tax calculations, and automates tax form filing and reporting. Leading tax compliance vendors offer separate applications to manage particular kinds of transactions and their associated taxes.
This type of software can help organizations maintain compliance and stay apprised of regulation changes across various tax types, including:
- Income taxes
- Employment taxes
- Corporate taxes
- Sales taxes
- Excise taxes
- Value-added taxes (VAT)
Beyond these capabilities, tax compliance software provides management of other tax-related tasks. These include exemption certificate search and management, e-way bill processing and tracking, returns processing with multi-jurisdictional compliance, and tax data analytics and audit reporting.
Within the tax compliance software landscape, vendors may focus on specific segments of the consumer market. This is typically based on company revenue size:
- Smaller businesses making 10 million or less
- Midsize businesses making between 10 million and several hundred million
- Enterprises making anywhere north of 500 million
However, not all vendors focus on a specific market segment, and many have offerings that are well suited for all business sizes. TrustRadius currently does not have a ‘company revenue’ filter for sorting reviews, but the ‘company size’ filter can serve as a useful proxy.
Sales Tax Software
Sales and use tax compliance apps calculate and process appropriate taxes to be levied across jurisdictions. Value-Added Tax (VAT) apps track regulations and automate calculation across complex scenarios. Leading tax compliance software also supports customs tax management for international sales. And many vendors offer managed tax filing and audit reporting for both corporations and small businesses.
Especially for online businesses that operate across states within the U.S. or internationally, having a sales tax compliance solution is critical. Laws and regulations regarding sales tax typically vary by jurisdiction, meaning that a business with locations in different jurisdictions will need to juggle staying in compliance with multiple sets of regulations. For example, many states within the U.S. have passed ‘economic nexus’ laws while a few have not as of 2020.
Sales tax compliance software can help companies manage this burden by keeping track of which sales tax regulations are in effect where, and automatically add them to the appropriate transactions.
Tax Compliance Software Integrations
Integrations with other third-party software are essential for tax compliance software. Sales tax compliance software may integrate with ecommerce platforms or shopping cart software, for instance. Other common integrations are with corporate ERP, budgeting and accounting software, procurement, and supply chain. Leading vendors tout integrations with many popular applications.
Tax Compliance Software Features
Types of taxes managed by tax compliance software include:
- sales & use tax
- value-added taxes (VAT) or goods and services taxes (GST)
- employee income tax
- corporate tax
- customs tax & tariffs
Common features of tax compliance software are as follows:
- geolocation for correct tax assessment
- return filing and tracking
- e-way bill management
- tax calculation & payment processing
- tax exemption processing & management
- automated complex scenario management (e.g. tax holiday)
- exemption certificate storage and search
- tax data analytics
Tax Compliance Software Comparison
Before investing in a tax compliance or sales tax software, consider the following key factors:
- Scope: does your business operate across borders or within the boundaries of one country? If you’re running an international business, then you’ll need a tax compliance software solution that can calculate the appropriate taxes across country borders. Not all tax compliance software solutions include calculation of cross-border and other international taxes.
- User-friendliness: how user-friendly is the software? Taxes can be difficult enough to calculate on their own, so your software should be as easy to use as possible. When you start evaluating different products, check to see if the vendor offers a free trial. Free trials are often one of the best ways to get ‘hands-on’ experience with the product before making a purchase. You can also check TrustRadius’ ‘usability’ product rating on a product’s scorecard to see how current customers rate a product’s overall ease of use.
- Cost: ultimately, tax compliance software is meant to help your business save more money and avoid costly and lengthy audits. Make sure the tax compliance software you’re considering will end up saving you more money in the long-run than it will cost you. Some tax compliance software is focused more on serving the needs of enterprise companies, while others focus more on smaller businesses. Enterprise-oriented tax compliance software will likely be too expensive and too complicated for many micro and small businesses.
Tax compliance software is often cloud-based and available on a per month subscription basis. Lower-tier plans support a relatively limited number of monthly transactions. Leading tax compliance software vendors offer a range of applications supporting the needs of specific industries (e.g. manufacturing), global corporations operating in multiple countries, or modules for only the specific kinds of transactions needed.
Additionally, some leading vendors provide all-in-one offerings for small and midsize businesses. These support management of local taxes, requisite sales and vendor transactions, document filing, and reporting in a single platform.
The following Tax Compliance Software offer award-winning customer relationships, feature sets, and value for price. Learn more about our Best Of Awards methodology here.