The recent U.S. Supreme Court verdict on South Dakota v. Wayfair overturns the long-lasting Quill decision, resulting in a dramatic change in sales tax payment of online sellers. Almost 90% of online businesses have less than 20 employees. As per this statistic, in small eCommerce company, either owner or manager end up doing all the business processing like marketing, accounting, shipping, customer service, and many other tasks. However, managing government regulations related to your online business can become terrifying. It is because of the difference in tax rates and applications. For example, a product may be taxable in one state but will be non-taxable in another country, a product may not be payable at the state level, but may be taxable at the local level. This difference and variations can be confusing and dreadful. If not an expert in accounting and taxation, errors will occur. Mistakes will cost not only money but will also invite legal troubles too.
To get rid of this trouble, you can use automated tax software.
Let us go into it,
1. TaxJar
For hassle-free sales tax calculations, reporting and filing, you can depend on taxjar. This extension will provide you with accurate sales tax calculations and return-ready reports. TaxJar manages more than 10,000 tax rates, updates monthly. Automatic updating of tax settings helps store owners to prepare and file tax returns in a few minutes. With an additional fee, you can choose Automatic filing. If you enable this feature, TaxJar will handle your sales tax filings automatically, and without any worry, you can automatically submit your tax returns to the state. If you enroll it once, then you will never miss your tax filing due date again.
The features of TaxJar are plenty, and other Notable Features includes;
- Simple installation. Once installed, in minutes you can start collecting the tax.
- This extension is customizable with e-commerce platforms like Volusion.
- In-built sales tax categories of TaxJar free non-taxable items, making your tax collection more accessible.
- You can obtain sales tax data all in a go.
Pricing:
- No contracts and activations fees.
- A 30 day trial for free, without a credit card.
- Once the trial period is over, you can make the payment as per the number of transactions you carried. This payment also provides you the API calling feature with a monthly charge of $19 per month. You only make API calls in those states where you have to calculate sales tax!
2. TaxCloud
TaxCloud is a certified service provider for many sales revenue departments and is free for retailers. The benefits of TaxCloud are plenty. This extension automatically tracks tax from different states, identifies sales tax holidays and can easily integrate with shopping carts and ordering mediums. These features help retailers to calculate, collect and remit sales tax instantly. Even small-scale business can manage sales tax-free of cost, with tax cloud. A team of experienced tax experts powers this cloud-based tax management extension. This platform helps users to track sales tax rates automatically, and tax exemptions- product-type and use-based tax exemptions of every state. With TaxCloud, retailers can quickly calculate and collect sales taxes, complying with sales tax laws.
The features of TaxCloud include,
- Free Automated Compliance Service
- User-friendliness
- Core Public Sales Tax APIs
- Advanced APIs
- Instant Implementation
- Track Sales Taxes of Every State
- Track Product-Type and Use-Based Exemptions in Every State
- Sales Tax Collection and Filing
- Reporting Features
- Easy Integration with an e-Commerce platform, order management, Shopping Cart, and ERP systems
- Online Store and Hosted Marketplace Integrations
- Integration with Payment Processing Services
- Optional Manual Sales Tax Management
Pricing
TaxCloud provides a free Automated tax Compliance service for all online users. On the other hand, for standard compliance, the company charges a minimum service fee of $10 per month.
3. Avalara
Avalara, founded in 2004 is a cloud-based sales tax and compliance system. With this extension, companies can relieve from the headache of multi-state sales tax calculation.
For companies and users expanding into new states, Avalara makes the major headache of multi-state sales tax relatively stress-free.
The features and benefits of Avalara, include accurate calculations, electronic filing and returns, and exemption from certificate management. Since Avalara is a cloud-based solution, regular updating is not required. Another strong feature of Avalara is, in a simple click Avalara calculates sales taxes and handles all calculation and creating reports of sales tax filings monthly. The implementation and use of Avalara are straightforward and simple.
The features of Avalara includes,
- Sales tax compliance automation
- Tax determination
- Exemption certificate management
- Tax filings, returns as well as remittance
- Tax rates for over 70,000 localities worldwide
- Automatically updates product taxability
- More than 10 million UPCs mapped to sales tax content
- Pre-built integrations for most ERP, POS & e-commerce systems
- Detailed reporting
- Support to over 100 countries worldwide
- 10 million UPCs allocated to sales tax content
- VAT compliance
Pricing
Avalara offers a subscription model. The price Start from $50.00/year. The rate is affordable and reasonable. The amount is calculated on a transaction basis so that you will pay, what you need.
4. Taxify
Taxify is a Government certified Sales Tax Service Provider which automatically calculates sales tax. Whenever an order is placed, and the checkout happens, Taxify automatically files the charges as per the state’s tax regulation. Taxify comprises a team of 40 tax attorneys, Taxify provides rates and rules helps you to make smart and quick decisions on new products and markets.
Features of Taxify comprises the following,
- Highly automated, and requires no specialized knowledge to use it.
- Recalculation of Sales tax is possible anytime on any order.
- Sales tax is automatically filed with Taxify for electronic processing in every state.
- Calculate Sales tax for orders from 13 months earlier to the plugin’s installation.
- Automatically files Partial and fully refunded orders.
- Tax-exempt customers can pay zero sales tax through the tax-exempt checkbox which is available on the checkout page.
- Individual items can be categorized as taxable, and nontaxable.
Pricing
There are no hidden charges, and the pricing is simple. You can start with the free trial and then based on the monthly transactions, can opt from Starter, Standard and Premium plans which will cost you between $47 and $247 per month.
5. Vertex
Vertex is the proven tax technology that simplifies the complexity of tax filing. With Vertex, you don’t have to worry about manual calculations. It calculates sales tax on every sales and purchase on every item locality wise.
Vertex is the only tax technology provider that has consistently maintained an unwavering commitment to corporate tax professionals for over 40 years. It is simple and can easily integrate with financial systems, ERP, and e-commerce store thus takes care of your tax filing on every single transaction. This extension has multiple deployment options so you can pick the technology as per your requirement. The Pricing of this extension is three-tiered and is flexible, suiting the various need of company. You have to subscribe Vertex to know more about pricing details.
The new rule was a worry for every retailer. With an insight into the sales tax service providers, half the problem is solved! But how to integrate these plugins? Getting stressed? Don’t be!! Virtina can do that job for you. Contact our eCommerce experts or Call (888) 478-4799