Best Sales Tax Compliance Software

Sales tax compliance software helps businesses utilizing customer-facing transactions apply the appropriate local and federal rules and rates so the correct taxes are collected. Staying up-to-date with changing rules and exemptions is required by law, and these tools ensure the full transaction lifecycle is aligned with any relevant jurisdictions—which can vary depending on the number of markets a business serves. Business owners, customer support teams, accounting teams, and e-commerce administrators in a variety of industries use sales tax compliance products to oversee tax collection and filing for all sales transactions, also known as indirect tax. This includes adjusting sales tax prices for certain products, customers, or occasions where necessary, such as sales tax holidays or after a customer’s change in circumstance, along with any update to official regulations when new legislation is passed. Proper use of these tools will greatly reduce the effort in tracking customer and rate data, as well as minimize the risk of any oversight that could result in customer dissatisfaction, missing funds, or legal ramifications. Some sales tax compliance tools will also send notifications for important tax filing dates or required paperwork. These systems often integrate with ERP systems and accounting software to ensure budgets, profits, and projections are accurate across the organization, as well as POS and e-commerce tools so taxes are correctly represented to customers and collected in transactions.

To qualify for inclusion in the Sales Tax Compliance category, a product must:

  • Track sales tax rates and rules for all jurisdictions relevant to a user’s products or services
  • Track and apply sales tax exemptions for the appropriate times, products, transactions, or accounts
  • Automatically update rates and rules in response to policy revisions or new legislation
  • Integrate with accounting and transaction tools so correct rates are communicated, stored, and applied where necessary

Sales Tax Compliance Software Grid® Overview

The best Sales Tax Compliance Software products are determined by customer satisfaction (based on user reviews) and scale (based on market share, vendor size, and social impact) and placed into four categories on the Grid®:
  • Products in the Leader quadrant are rated highly by G2 Crowd users and have substantial Market Presence scores. Leaders include: Avalara AvaTax and Vertex O Series
  • High Performers are highly rated by their users, but have not yet achieved the market share and scale of the Leaders. High Performers include: TaxJar
  • Contenders have significant Market Presence and resources, but have received below average user Satisfaction ratings or have not yet received a sufficient number of reviews to validate the solution.
  • Niche solutions do not have the Market Presence of the Leaders. They may have been rated positively on customer Satisfaction, but have not yet received enough reviews to validate them. Niche products include: CCH Sales Tax Office
G2 Crowd Grid® for Sales Tax Compliance
Leaders
High Performers
Contenders
Niche
Cch sales tax office
Avalara avatax
Taxjar
Vertex o series
Market Presence
Satisfaction
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