Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
If you are an Amazon FBA seller, the dreaded sales tax is something that you need to face on a monthly, semi-annual, and annual basis. The United States has over 10,000 different municipalities and counties, so it's no surprise that there are a lot of regulations for businesses to navigate when it comes to sales taxes. Meanwhile, there are 13 provinces with different local sales tax regulations and VAT you’ll come across in Canada.
This post will break down some of the best software solutions out there for calculating accurate sales tax and VAT on products sold through Amazon FBA. Whether you're a business owner or a sole proprietor, this list should help make your life easier. Skip the worry of calculation and accuracy. Let the following software do them for you!
One of the most challenging tasks in sales tax rate computation is the first step of whether you are under a jurisdiction’s sales tax nexus. Considering national and local tax regulations makes sales tax even more complicated. But, you can skip these worries with Taxjar as the software stores information of up to 11,000 states, provinces, and municipalities.
Your sales tax, Amazon FBA are all computed and tracked. Amazon also has the Marketplace Tax Collection, so even the tax acquisition and remittance are made for you. Meanwhile, Taxjar collects all the charges and sales tax details to ensure you have data for sales tax reports.
Skip any litigation from your tax bureau by paying your taxes correctly and on time. Taxomate has you covered on your sales tax and income taxes. As your taxes are monitored, so is your inventory, so you’ll have data on best-selling products and when it is already time for stocks replenishment.
Once you purchase from Amazon and other eCommerce sites like Shopify and eBay, the details are automatically sent to Taxomate. Amazon financial statements are easily generated. Given that you have expanded your customers abroad and use a different currency, the multicurrency function of Taxomate will make tax computation and remittance easier.
Another reliable software that can assist you in tracking your eCommerce business inventory, sales, taxes, and other essential data for your business is A2X. Unlike other software that focuses on taxes, A2X’s coverage is broader. It serves as automated bookkeeping for your business, which removes the need for manual input and the risk of data inaccuracy.
Amazon FBA and sales tax assistance are made possible because the software monitors FBA inventory locations and the destination of orders. These two details are the basis of sales tax rates. Because of the historical data available on the software, you can also check trends on sales tax and your business as a whole.
There are three main areas on business taxes Avalara can help you with: sales tax, income tax, and tax exemption.
Sales tax: Avalara is equipped with information on the different tax rates and rules of other countries, states, provinces, and municipalities. It will compute sales tax according to these data and include them in the invoice and your information history. Tax remittance is also covered.
Tax returns: Tax returns are the rate charged to business owners depending on their income. Avalara computes how much income tax you should pay and remits it for you before tax time.
Tax exemption: When customers or employees send in their tax exemption certificate, Avalara considers the document so they won’t be charged.
Taxify is a software that focuses not only on Amazon FBA sales tax filing. It can also handle taxes of different business lines, increasing the software’s credibility. Taxify can handle sales tax, use tax, and VAT of the following ventures:
- Financial services
- Digital services
- New economies
The software already has stored information on tax rates for accurate computation, so the rates can be computed automatically no matter where you sell. Tax charges are already imprinted on invoices. If any exceptions need to be applied, Taxify also considers them. Lastly, Taxify has you covered on tax filing.
Your customers might be from countries implementing VAT, so it pays to know about it and how it is implemented. Nevertheless, let an automated software do it for you when it comes to calculation and tracking.
European countries and some provinces in Canada implement this kind of taxation. With HelloTax, the rates and rules from these different places are all acquired and computed. Amazon is one of the marketplaces HelloTax is compatible with, and eBay and individual online shops. You can integrate the data you will get from HelloTax to your main accounting software too!
Are you planning to expand your business abroad, especially those that charge VAT like the European Union and the United Kingdom? Make VAT computation easier using SimplyVAT. SimplyVAT does not only offer software for VAT calculation, but its staff can also assist you with VAT registration, VAT filing, and consultations.
For Amazon Pan-European FBA, SimplyTax also gets you covered through solid customer service and education. You will be partnered with VAT experts who will handle your VAT accounts. No language and geographic location can hinder the automation of your VAT; the staff at SimplyVAT speak different languages and can offer assistance for different EU and UK countries.
Unloop’s Amazon FBA Sales Tax and Accounting Assistance
Taxes can be tricky to navigate, whether for domestic or international sales. You must understand how much tax is owed in each country and the appropriate VAT or Sales Tax number for your business.
We know this may seem like an overwhelming task. Hence, we’ve put together seven of our favorite software solutions for Amazon FBA sellers who are looking to get their taxes under control. These applications will help you accurately calculate tax rates based on specific regions around the globe where your products are sold—making compliance easier than ever! Let us help you with your sales tax and accounting needs through Unloop's sales tax preparer services. We use reliable software for automation and accuracy. Give us a call now at 877-421-7270. We’d love to discuss our services with you!