Tax Compliance Software

Best Tax Compliance Software include:

Avalara and Vertex.

Tax Compliance Software TrustMap

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Tax Compliance Software Overview

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:

  1. 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.

  2. 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.

  3. 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.

Pricing Information

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.

Tax Compliance Products

(1-25 of 35) Sorted by Most Reviews

232 ratings
291 reviews
Top Rated
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.
76 ratings
105 reviews
Top Rated
Vertex combines tax research with technology to improve tax accuracy and consistency on sales and purchase transactions. This automation supports high volume and complex transactions at speed and scale to streamline internal processes and improve audit performance. Cloud and on-premise deployment op…
Proconnect Tax Online
10 ratings
7 reviews
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.
0 ratings
7 reviews
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, special jurisd…
3 ratings
7 reviews
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 workflows, penalty…
Thomson Reuters ONESOURCE
5 ratings
5 reviews
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.
1 rating
3 reviews
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.
Sovos Intelligent Compliance Cloud (formerly Sovos S1 Platform)
0 ratings
2 reviews
The Sovos Intelligent Compliance Cloud includes tax automation capabilities, including sales and use tax, 1099 reporting, ACA reporting, VAT solutions, and FATCA compliance.
CCH SureTax
1 rating
1 review
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.
Intuit Lacerte
2 ratings
1 review
Intuit Lacerte is an Income Tax Compliance system, providing forms, tax planning support, as well as document management and document storage.
SS&C Advent Axys
SS&C company Advent Software offers Axys, a turnkey portfolio reporting and accounting solution providing workflow automation, tax compliance automation, multicurrency accounting, and related features.
CSC Corptax Compliant
CSC Corptax Compliant is a tax compliance software solution oriented towards the needs of corporations, automating the tax filing process with data integration and reporting capabilities.
TaxCloud is a cloud-based tax calculating, analyzing and compliance application from FedTax (or Federal Tax Authority) headquartered in Connecticut.
British company VATBox offers a VAT recovery and governance application.
ESKORT Compliance Solution
INTRASOFT International headquartered in Luxembourg offers the ESKORT Compliance Solution, a tax audit and compliance suite.
Fast Enterprises FastUI
Fast Enterprises headquartered in Centennial offers FastUI, an integrated unemployment insurance tax and benefit administration platform for state agencies.
Fast Enterprises GenTax
Fast Enterprises headquartered in Centennial offers GenTax, a commercial of the shelf (COTS) is an integrated tax processing platform designed to support agencies.
A cloud based accounting software for accountants, bookkeepers and small to medium sized business owners. The vendor states they simplify bookkeeping and payroll to make it a breeze for business owners. They also provide inter-connected, cloud based year end accounts, self assessment and CRM modules…
Pentana Disclose
Ideagen’s financial disclosure checklist SAAS solution aims to provide an efficient way to check the disclosures required by accounting standards and legislation needed for entities preparing financial statements. Pentana Disclose offers accounts disclosure checklist packages for FRS, IFRS and US GA…
LOVAT is a SaaS company consisting of a team with professional tax experts everyday helping business across the globe to achieve such thing that no company would ever like to miss - to always stay VAT compliant. Keeping in line with all the VAT obligations can be time-consuming and troublesome for a…
SAP Tax Compliance
SAP Tax Compliance is a global tax management platform for enterprises supporting tax calculation, validation, tax transfer management, and advanced tax reporting.
a3BOE is as tax documentation and tracking tool from Wolters Kluwer.
Wolters Kluwer B.Point
Wolters Kluwer offers B.Point, a software for accountants to manage all tax and accounting obligations with a single application. It is available in continental Europe, and primarily sold in Italy.
Wolters Kluwer Corporate Actions Suite
Wolters Kluwer's Corporate Actions Suite is presented as a suite of solutions that provides financial institutions, accounting and legal professionals with detailed and accurate corporate action taxability information for portfolio and tax lot accounting, cost basis and withholding tax compliance. C…
Wolters Kluwer Corporate Taxprep
Wolters Kluwer states Corporate Taxprep is the choice of virtually all of Canada’s top accounting firms, the CRA and half of all FP 500 companies, and that is has the most comprehensive collection of federal and provincial forms and tools designed to address complex T2 preparation requirements. It’s…

Frequently Asked Questions

What does tax compliance software do?

Tax compliance software helps companies manage both local and federal tax calculations, automate tax reporting, process tax returns, track tax regulation compliance, and manage certificates. They also provide organizations with a centralized location for all of their important tax-related documents, creating a paper trail businesses can use during audits.

What are the benefits of using tax compliance software?

One of the main benefits of using tax compliance and sales tax software is the decrease in the manual effort it takes to calculate and file taxes. Another big advantage of using this type of software is that it can help companies keep track of differing sales tax regulations across jurisdictions. Having a cloud-based central repository for all tax documentation also means organizations are less likely to lose track of important tax files.

What are the best tax compliance software products?

According to feedback from end-users on TrustRadius, the two top-rated tax compliance software products are:

You can learn more about other more tax compliance software solutions on TrustRadius’ tax compliance software page.

How much does tax compliance software cost?

Tax Compliance software prices vary from product to product. More basic solutions that only include tax reporting and filing can cost as little as $15 per month, depending on the number of transactions run per month. Platforms that include automated tax calculation typically cost more and can range from $50 per month up to multiple hundreds of dollars per month, depending on the number of features included. Most vendors will provide more detailed pricing information upon request.