8 Best Amazon Seller Tax Software in 2025

Amazon collects and calculates sales tax at checkout, but the responsibility for filing and paying those taxes still falls on you.

Finding the right tool can be tricky since many solutions handle either tax filing or accounting, but rarely both. If you’re looking to streamline the process, Link My Books, integrated with Xero or QuickBooks, is the best choice for reconciling sales tax within your bookkeeping software. For tax filings, dedicated apps like TaxJar and Avalara are your go-to solutions.

We’ll break it down into two categories:

• Accounting for sales tax in Xero or QuickBooks: Great for bookkeeping but not for filing tax returns.
• Apps for calculating and filing sales tax returns: These excel at compliance and filings but don’t focus on accounting.

Let’s dive in and find the best sales tax solution for your Amazon business.

Best Amazon Seller Tax Software

• Xero with Link My Books
• QuickBooks with Link My Books
• TaxJar 
• Avalara 
• SimplyVAT 
• Vertex
• Sovos
• TaxCloud

Link My Books - Best for accounting for Amazon sales tax in Xero or QuickBooks

Managing sales tax for your Amazon business doesn’t have to be a headache. Link My Books provides organized and audit-ready reports, ensuring your financial data is precise, compliant, and ready for tax season. It integrates seamlessly with Xero and QuickBooks, making all your tax-related information audit-proof.

With automatic tax calculations, you'll have a unified system that conveniently runs on autopilot. It also acts as an Amazon fees calculator as it automatically accounts for your Amazon fees.

Designed specifically for eCommerce sellers, including Amazon users, Link My Books eliminates the guesswork, handling everything from marketplace facilitator tax rules to multi-currency transactions.

Xero with Link My Books

Xero is a cloud-based accounting software tailored for small to medium-sized businesses. It offers essential tools like invoicing and bank reconciliation, making it a strong contender for Amazon sellers. Known for its intuitive interface, Xero provides a user-friendly experience, making it accessible to both accounting professionals and business owners without extensive accounting knowledge.

With a strong international presence, Xero supports multiple tax jurisdictions and currencies, catering to businesses operating in various regions

If you’re looking for completely streamlined error-free accounting that is tailored to Amazon sellers, integrating Link My Books with Xero is a superior choice.

Here’s what you can expect from this integration: 

Automated Financial Sync

Link My Books syncs all Amazon sales data, including orders, seller fees, and refunds, directly into Xero.

You no longer need to input your transactions into your accounting software manually. The system does it for you automatically, saving hours of repetitive work.

This reduces errors and ensures all transactions are accurately recorded, freeing up your time to focus on growing your business.

Tax-Compliant Invoices

Link My Boks breaks down all your payouts from Amazon into sales, refunds, fees, and sales tax. This simplifies audits and ensures your financial records are always up-to-date and compliant.

Accurate Sales Tax Calculations

Link My Books takes your total sales tax amount provided by Amazon and accounts for it in your bookkeeping.

This eliminates the stress of calculating taxes manually, helping you avoid costly compliance mistakes and stay organized for tax filings.

Payout Reconciliation

You can easily reconcile Amazon payouts in Xero with one click. Link My Books matches the payouts received in your bank account to the related transactions in Xero, ensuring everything adds up. 

This keeps your books balanced without the hassle of finding and fixing mismatched transactions.

Multi-Currency Support

Link My Books handles transactions in multiple currencies, converting them into your base currency for accurate accounting. If your Amazon store accepts payments in multiple currencies, Link My Books ensures all transactions are recorded correctly in Xero’s base currency.

This simplifies global sales management, avoiding confusion over exchange rates and helps you maintain accurate records.

Cost of Goods Sold (COGS) Management

Link My Books tracks and manages your Cost of Goods Sold within Xero. COGS tracking gives you insights into how much you’re spending on producing or sourcing your products.

This ensures your profit margins are calculated accurately, helping you understand the true profitability of your store.

What other Amazon sellers say about Link My Books

You can try Link My Books for free for 14 days. You don’t need a credit card and it takes 15 min to set up. 

QuickBooks with Link My Books is best for Advanced Reporting 

QuickBooks Online is an accounting platform that caters to small and growing business owners. It provides a clean, intuitive interface and a wide range of accounting tools, making it easy for newcomers to manage their finances.

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If you use Amazon Business for purchasing supplies or inventory, QuickBooks Online provides an integration to streamline expense tracking:

• Automated Expense Import: The Amazon Business Purchases app imports your Amazon Business purchases into QuickBooks Online, including detailed information like item descriptions and costs.
• Expense Categorization: Transactions are automatically categorized, simplifying bookkeeping and ensuring accurate financial records.
• Seamless Reconciliation: By linking your Amazon Business account with QuickBooks, you can easily match purchases with bank or credit card transactions, facilitating smoother reconciliations.

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For Amazon sellers, integrating sales data into QuickBooks Online is essential for accurate accounting. To completely automate your Amazon accounting all you need to do is integrate Link My Books with Amazon and QuickBooks. You can try it for 14 days free of charge, and it doesn’t require a credit card to start. 

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Here’s what you can expect when you integrate the two:

Automatic Order Sync

Link My Books Sync all Amazon orders, including line items, taxes, and FBA fees, directly into QuickBooks Online. Any order processed through Amazon is automatically recorded in QuickBooks with detailed breakdowns, so there is no need to do any manual entry.

Accurate Sales Tax Calculations

Link My Books automates the accounting of your total sales tax reported by Amazon, integrating it directly into your bookkeeping. 

This removes the hassle of manual tax calculations, reduces the risk of compliance errors, and keeps you organized for seamless tax filings.

One-Click Payout Reconciliation

You can quickly reconcile your Amazon payouts in QuickBooks with a single click. The app matches payouts from Amazon to the corresponding transactions in QuickBooks automatically.

This keeps your books balanced effortlessly and eliminates the guesswork in matching transactions to payouts.

Clear Financial Summaries

You can receive detailed summaries of your Shopify sales, refunds, and fees in QuickBooks. Link My Books provides concise reports summarizing all Amazon transactions, giving you a bird’s-eye view of your business finances.

This helps you understand your store’s financial performance at a glance and make informed decisions.

Multi-Currency Support

You can handle international sales with automatic currency conversions for accurate financial reporting. Any transactions you make in foreign currencies are automatically converted to your home currency in QuickBooks.

This simplifies accounting for global sales, ensuring you have accurate records and consistent financial reporting.

Best software for calculating and filing sales tax returns on Amazon

Managing sales tax on Amazon requires a clear understanding of the difference between calculating and filing taxes versus accounting for them. Apps for calculating and filing sales tax focus on compliance by automating tasks like determining the correct tax rates, collecting sales tax, and filing returns across various jurisdictions. However, these tools typically don’t handle bookkeeping tasks or offer deep integration with accounting software like Xero or QuickBooks.

If you’re selling in multiple states or countries and need help filing tax returns accurately, this section highlights the best apps for the job.

Read more about understanding Amazon account level reserve.

Why the Distinction Matters

Purpose:

• Accounting for Sales Tax: Tools like Link My Books integrate sales tax data with accounting platforms like Xero and QuickBooks, streamlining bookkeeping but not filing tax returns.
• Calculating and Filing Sales Tax: Apps like TaxJar and Avalara automate compliance tasks, such as calculating taxes for each sale and filing returns for multiple states or countries.

Suitability:

• If you need assistance filing returns across multiple jurisdictions, choose a filing-focused app.
• If your priority is syncing sales data with accounting software, opt for an accounting-focused app.

Functionality Gap:

• Filing apps don’t integrate seamlessly with accounting platforms.
• Accounting apps don’t calculate or file taxes by jurisdiction.

By using both types of tools, you can ensure compliance while keeping your books accurate and up-to-date. Let’s dive into the top apps for calculating and filing sales tax returns on Amazon.

TaxJar - Best for U.S.-based Amazon sellers managing multi-state sales tax compliance

TaxJar is one of the most popular sales tax automation tools for Amazon sellers. It simplifies compliance by automating tax calculations, reporting, and filing across multiple jurisdictions. If you sell in states with varying sales tax rates or face economic nexus laws, TaxJar ensures you meet every requirement effortlessly.

It also integrates seamlessly with Amazon and other platforms like Shopify and Walmart, making it a versatile solution for multichannel sellers. Its advanced analytics allow you to dive deeper into tax trends and liabilities, offering insights to optimize your operations.

Features

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• AutoFile: TaxJar can automatically file and remit sales tax returns in over 40 states.
• Economic Nexus Dashboard: Provides insights into where you have nexus based on your sales thresholds.
• Real-Time Tax Rate Calculations: Integrates with Amazon and other platforms to calculate the correct tax rate for each transaction.
• Detailed Reporting: Generates easy-to-read reports for sales tax filings, helping you track what’s been filed and what’s owed.
• Easy Integration: Connects with Amazon and other platforms for streamlined operations.

Why Choose TaxJar?

TaxJar is the perfect fit for U.S. sellers navigating the complexities of multi-state sales tax. Its real-time updates ensure you’re always working with the latest rates, and the AutoFile feature takes filing off your plate entirely.

Avalara - Best for Comprehensive tax compliance for large businesses

Avalara is a robust, enterprise-level tax solution designed for sellers with complex tax needs. Whether you’re selling across the U.S., Europe, or globally, Avalara handles sales tax, VAT, and GST with ease, and offers a robust platform for filings, and exemption management. It’s particularly suited for large-scale sellers who need advanced features like exemption certificate management and international compliance tools.

The platform’s API integration capabilities make it customizable for enterprise-grade systems, allowing businesses to tailor Avalara to their specific workflows. It’s a trusted solution for companies with significant sales volume, where accuracy and scalability are paramount.

Features

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• AvaTax: Automates tax calculations in real-time for every sale, considering jurisdiction-specific rules.
• CertCapture: Manages and validates exemption certificates to ensure compliance with tax-exempt transactions.
• Global Tax Compliance: Covers VAT and GST in addition to U.S. sales tax, making it a powerful solution for international sellers.
• Returns Automation: Automatically generates and files tax returns in multiple regions.

Why Choose Avalara?

If your business operates globally or handles high transaction volumes, Avalara ensures accuracy at every step. Its comprehensive compliance tools help you stay ahead of regulations, making it an essential tool for scaling operations.

SimplyVAT Best for International Amazon sellers managing VAT compliance

SimplyVAT specializes in international VAT compliance, assisting sellers with tax regulations across Europe and beyond, providing personalized support for cross-border transactions. 

It offers VAT compliance, registration, and return services tailored for ecommerce businesses. They specialize in managing VAT requirements across various regions including the EU, Canada, Australia, and New Zealand.

Additionally, SimplyVAT provides a user-friendly compliance platform called Tribexa, which empowers you to manage all your VAT requirements efficiently. Tribexa is designed to make VAT compliance straightforward for online sellers. It offers features such as API connections to your sales channels for quick data transfer and automated return filings, reducing manual effort and the risk of errors. 

Features

• International VAT Registration and Reporting: Facilitates VAT compliance in multiple countries.
• Filing and Reporting: Automates VAT filings and provides clear reports to track compliance.
• Dedicated Support: Offers personalized advice to sellers unfamiliar with cross-border VAT regulations.

Why Choose SimplyVAT?

If you’re growing your Amazon business internationally, SimplyVAT provides the tools and support to ensure smooth VAT compliance. It’s especially useful for sellers entering European markets for the first time.

Vertex - Best for Enterprise-level tax compliance solutions

Vertex is a leading provider of comprehensive tax technology solutions designed to streamline and automate tax processes for businesses of all sizes. Their platform offers a range of features to enhance tax accuracy, compliance, and efficiency.

It provides comprehensive tax solutions, including sales tax, VAT, and GST calculations, suitable for large businesses operating across multiple jurisdictions.

The platform's ability to integrate with various business systems ensures that tax processes are seamlessly incorporated into existing operations, reducing manual effort and the risk of errors. Additionally, Vertex's global tax support makes it a versatile solution for businesses with international operations.

Features

• Tax Determination and Calculation: Vertex's tax engine supports over 800 million data-driven tax rules for sales, use, and value-added tax (VAT).
• Integration Capabilities: The platform seamlessly integrates with numerous ERP, e-commerce, procurement, and billing systems.
• Compliance Management: Vertex automates compliance activities, including tax filings and remittances.
• Exemption Certificate Management: The software manages tax exemptions by tracking and applying the appropriate exemptions for products, transactions, or accounts.
• Global Tax Support: Vertex addresses a wide range of indirect taxes, including sales and use tax, VAT, and payroll tax.

Why Choose Vertex?

Vertex combines extensive tax research with robust technology to improve tax accuracy and consistency on sales and purchase transactions. If you’re handling high-volume, complex transactions you can do it at speed and scale, streamlining internal processes and enhancing your audit performance.

Sovos - Best for Global tax compliance and reporting

Sovos is a global provider of tax compliance and regulatory reporting software, offering solutions that automate and simplify tax processes for businesses operating in an increasingly regulated environment.

Sovos offers a suite of tax compliance solutions, including sales tax automation, VAT reporting, and e-invoicing, catering to businesses with international operations.

Sovos includes Taxify as part of its suite of tax compliance solutions. Taxify is specifically designed to automate sales tax calculations and filings for small to medium-sized businesses, particularly those operating in e-commerce. By integrating Taxify, Sovos offers a comprehensive tool that simplifies the complexities of sales tax compliance across various jurisdictions.

Features

• Comprehensive Tax Solutions: Sovos provides tools for sales and use tax automation, VAT reporting, e-invoicing compliance, and more.
• Global Compliance Coverage: With support for over 70 countries, Sovos helps businesses navigate complex international tax regulations.
• Integration Capabilities: The platform integrates seamlessly with a wide range of business applications, including ERP and accounting systems, streamlining tax processes within existing workflows.
• Real-Time Reporting: Sovos offers real-time tax reporting and continuous transaction controls.
• Scalability: Designed to meet the needs of businesses of all sizes, Sovos's solutions are scalable, accommodating growth and increasing regulatory demands. 

Why Choose Sovos?

Sovos combines local expertise with a seamless, global customer experience across its full suite of compliance solutions. They are a strong choice if you’re looking for cloud tax software and services to meet compliance and regulatory demands anywhere you do business.

TaxCloud - Best for Small to medium-sized businesses in the U.S

TaxCloud is a cloud-based sales tax compliance solution designed to simplify tax management for businesses operating across the United States. TaxCloud offers a comprehensive suite of features to handle sales tax calculation, collection, and filing across over 13,000 U.S. jurisdictions.

Features

• Automated Sales Tax Calculation: TaxCloud provides real-time tax rate calculations for transactions, ensuring accurate tax collection at the point of sale.
• Seamless Integration: The platform integrates with over 85 e-commerce platforms, shopping carts, and marketplaces, facilitating smooth data flow and reducing manual entry.
• Filing and Remittance: TaxCloud offers automated filing services, preparing and submitting sales tax returns to the appropriate tax authorities, thereby reducing administrative burdens.
• Nexus Monitoring: The system tracks economic nexus thresholds across different states, alerting businesses when they need to register for sales tax collection in new jurisdictions.
• Audit Support: TaxCloud provides support during audits, assisting businesses in managing and responding to tax authorities effectively.

Why Choose TaxCloud?

TaxCloud works for small to medium-sized e-commerce businesses seeking an affordable and automated solution for sales tax compliance. Its ability to integrate with a wide range of platforms and automate the end-to-end tax process makes it a convenient choice for businesses looking to streamline their tax obligations across multiple U.S. jurisdictions. 

How to choose the best Amazon tax software

Selecting the right tax app for your Amazon store depends on your business's specific needs and goals. Below are the key factors to consider when evaluating the best solution, along with insights to guide your decision-making process:

Compliance Coverage

Does the app cover the regions where your business operates?

Tax regulations vary widely across countries, states, and even cities. For Amazon sellers, this could mean navigating U.S. state sales tax, EU VAT, or international GST. An app with comprehensive compliance ensures you meet your obligations no matter where you sell.

Why It Matters for Amazon Sellers: Amazon collects sales tax in some regions, but you may still need to file returns or account for additional taxes, such as VAT on seller-fulfilled items.

Automation

How much of the tax process does the app automate?

Automation simplifies complex tasks like tax calculations, return filings, and payout reconciliations. The more automated the app, the less time you spend on manual work, reducing the likelihood of costly errors.

Why It Matters for Amazon Sellers: With high transaction volumes, automating tax calculations and filings can save hours each month and ensure compliance.

Integration

Does the app integrate seamlessly with Amazon and tools like QuickBooks or Xero?

Strong integrations eliminate the need for manual data entry, reducing errors and making it easier to reconcile your accounts.

Why It Matters for Amazon Sellers: An app that syncs with your accounting software and Amazon Seller Central ensures all your tax data flows smoothly into your financial reports, saving time and effort.

Value for Money

Is the pricing structure suitable for your business size and requirements?

Some apps charge a flat fee, while others calculate costs based on transaction volume or revenue. Choose an app that aligns with your budget and the level of service you need.

Why It Matters for Amazon Sellers: For sellers with high transaction volumes, an app with a transparent and scalable pricing model prevents unexpected costs.

Ease of Use

How user-friendly is the app’s interface, and how easy is it to set up?

A simple and intuitive app reduces the learning curve, so you can spend more time growing your business rather than troubleshooting software.

Why It Matters for Amazon Sellers: Dealing with sales tax is already complex, your app should make the process as stress-free as possible.

Scalability

Can the app grow with your business?

As you expand into new markets or increase your sales volume, your tax obligations will grow. A scalable app ensures you can handle these changes without switching software.

Why It Matters for Amazon Sellers: If you’re planning to expand into international markets or sell across multiple channels, a scalable tax app prevents limitations as your business grows.

Pro Tip: Combine a tax app like TaxJar or Avalara for compliance and filing with accounting software like Link My Books for streamlined bookkeeping and reconciliation. This pairing ensures you have end-to-end tax management for your Amazon business.

How do they Compare 

Here’s a simple table that can help you compare these apps at a glance. 

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Why do sellers choose Link My Books for Amazon FBA accounting?

Managing accounting for Amazon FBA isn’t just about keeping the numbers in order, it’s about making sense of the chaos. High volumes of transactions, international sales, multiple currencies, and a maze of fees can leave even the most organized sellers feeling overwhelmed. Link My Books transforms that complexity into clarity, giving sellers control and peace of mind.

It’s Built for Amazon Sellers

Link My Books isn’t just another accounting tool. It understands the unique challenges Amazon sellers face, like reconciling those frustrating lump-sum payouts that don’t align with individual transactions or ensuring that taxes are accurately reported across multiple jurisdictions. It's designed to work with the way Amazon operates, not against it.

It Saves Time You Don’t Have

For FBA sellers, time is better spent finding profitable products, optimizing listings, or scaling operations, not getting stuck in spreadsheets. By automating the heavy lifting, Link My Books frees up hours each week, letting you focus on growing your business rather than managing its books.

It Provides Confidence, Not Guesswork

When it comes to accounting, uncertainty can be costly. Link My Books eliminates the guesswork by ensuring that your financial records are accurate, compliant, and ready for audits. You can rest easy knowing your numbers are right, your taxes are handled, and your reports are ready when you need them.

It Grows with You

As your Amazon business scales, so do its complexities. More sales, new marketplaces, different currencies, it all adds up fast. Link My Books is built to handle growth without adding more stress, ensuring your accounting keeps pace with your success.

FAQ 

What tax form does an Amazon seller need?

The tax forms Amazon sellers need depend on their location, the nature of their business, and their annual sales or payment thresholds. In the United States, most Amazon sellers will typically require:

1. Form 1099-K:some text
   • Amazon issues this form to sellers who meet specific transaction thresholds. It reports the gross payment amounts received through Amazon Payments or other payment processing systems.
   • Thresholds for 2023 and beyond:some text
     • $600 or more in total payments, regardless of the number of transactions (lowered from the previous threshold of $20,000 and 200 transactions).
2. Schedule C (Form 1040):some text
   • Sole proprietors or single-member LLCs use this form to report income and expenses from their Amazon business as part of their individual tax return.
3. Form 1120 or 1120-S:some text
   • For corporations or S corporations, these forms are used to report business income and deductions.
4. State Sales Tax Filings:some text
   • Depending on the states you operate in or have nexus with, you may need to file sales tax returns to remit the taxes Amazon collects on your behalf.

Does Amazon issue 1099s to sellers?

Yes, Amazon issues Form 1099-K to U.S.-based sellers who meet the reporting thresholds.

• Who Gets a 1099-K?some text
  • Sellers who earn $600 or more in gross payments during the calendar year.
  • This form is provided electronically via Amazon Seller Central or by mail.
• What Does the 1099-K Include?some text
  • It reports the total gross sales processed through Amazon Payments, including sales, shipping fees, refunds, and adjustments. Note that it does not deduct expenses like fees, refunds, or the cost of goods sold.
• Where to Find It:some text
  • In Seller Central, navigate to the Tax Document Library under the Reports section to download your 1099-K.

Important Note:
Even if you don’t receive a 1099-K (e.g., your sales are below $600), you are still required to report all income from your Amazon business when filing your taxes. Keep accurate records of your sales, expenses, and fees to ensure compliance.

By using a tool like Link My Books, you can automate your Amazon income tracking and ensure that your records are accurate and ready for tax season.

Automate your Amazon Bookkeeping with Link My Books

For many sellers, accounting is the least favorite part of running an Amazon business. But with Link My Books, the process becomes straightforward. It simplifies the parts that used to be overwhelming, giving you clarity, confidence, and, most importantly, time to focus on what matters most - growing your business

Link My Books isn’t just software, it’s a partner that makes Amazon FBA accounting manageable, efficient, and even stress-free. If you’ve been dreading your books, it’s time to let Link My Books do the heavy lifting.

Ready to simplify your Amazon FBA bookkeeping? Try Link My Books free for 14 days and experience the difference.