6 Best Amazon Seller Tax Softwares in 2024 (Must-Try Solutions)

Do you need a specialised tax software for your Amazon business? Choosing which ones to use can be tricky because there are so many options out there. That's why we've compiled a list of 6 best Amazon seller tax software available. Interested in simplifying your tax processes? Then read on.

Why Use Amazon Seller Tax Software?

If you're an Amazon seller using manual data entry for your accounting and tax processes, you'll know that working out your Amazon taxes can get overwhelming. On top of calculating your sales tax on all the products you sell, you have to consider tax laws and tax regulations across different countries and states you sell in.

Tax software for Amazon sellers will calculate your taxes and enable you to submit your tax return either through the software itself, or by synching your tax information with a bookkeeping software.

Not sure where to begin? Stick around. We're going to discuss six of the best Amazon seller tax software. By the end of this article, you'll be waving goodbye to tiresome manual tax calculations and welcoming easy-to-use tax software into your life as an Amazon seller.

Best Amazon Seller Tax Softwares

• Link My Books
• Xero
• QuickBooks
• Avalara
• HelloTax
• TaxJar

1. Link My Books: Best for Automated Amazon Tax Calculations

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We're jumping right into our list of best tax software for Amazon sellers with Link My Books. Link My Books is a software that does what it says on the tin; links your books with your Amazon business. The software acts as a middle man between your Amazon account and bookkeeping software.

It takes all your financial information, automatically calculates your sales taxes according to the Amazon Marketplace and its respective tax obligations, and then sends it over to your Amazon accounting software. With all this data calculated, gathered, and managed, you can file taxes quickly and easily.

Features

• Accurate tax calculations
• Accounting on autopilot
• Value for money
• Easy to set up and manage

Accurate Tax Calculations

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Because this article is all about tax software for Amazon, we're going to kick off our list of Link My Books features with 'accurate tax calculations'. More than 8,000 Amazon sellers have used our software since its launch in 2018. In this time, we've discovered that more than 75% of Amazon businesses are making mistakes in their accounting processes. This can naturally lead to tax errors; a definite no-no for any business.

Link My Books has several benefits when it comes to Amazon tax management:

• Automatically calculates tax on everything you sell.
• Ensures you pay the appropriate sales tax every time; it accounts for sales, Amazon seller fees, and refunds.
• Avoid penalties that inevitably come with getting your taxes wrong.

Accounting on Autopilot

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You can save hours each month by using Link My Books because everything is automatically broken down. It generates clean summary reports that include your data like revenue, expenses, and profit, and automatically sends over to your accounting software, like QuickBooks or Xero. This eliminates the need for Amazon sellers to manually transfer their data from one to the other.

Additionally, Link My Books users can take advantage of our auto-post settlement feature. This handy feature, as the name suggests, automatically posts settlements to your bookkeeping software as soon as they happen.

Link My Books consolidates data from multiple sales channels. These include:

• Amazon
• Etsy
• eBay
• Shopify
• TikTok Shop
• Walmart

If your business operates across multiple stores, which most Amazon businesses do, you can create a unified accounting process. In other words, all your data is accounted for and recorded in your accounting software.

Every Link My Books user can also access the COGS (cost of goods sold) tracking feature. This means you can get real-time data on the cost of the products you've sold and instantly see your profits on each item.

Value for Money

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Over the years, we've worked hard to ensure Link My Books is cost-effective and value for money. When it comes to accounting and tax compliance, we think it's important that every business has a way to simplify their bookkeeping without breaking the bank. As such, we have a simple pricing model comprising three plans:

• Lite: This costs £13/month. With this plan, you can integrate one sales channel (either Amazon, Etsy, eBay etc.). You get access to three months of historical data.
• Pro: Costing £23/month, the Pro plan allows you to connect up to five sales channels like Amazon or other e Commerce platforms. You get access to 12 months of historical data so you can make reliable, data-driven decisions for your business.
• Premium: Our Premium plan costs £43/month and with it you can integrate ten sales channels. Additionally, Premium members can access 24 months of historical data.

All plans allow you to add an unlimited number of users to your software. And, connect as many Amazon marketplaces as you wish.

Easy to Set Up and Manage

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Another aspect that makes Link My Books one of the best tax software options is its user-friendly interface. It's easy to both set up and manage. All you need to do to get up and running is sign up, add your Amazon and accounting software details, and confirm your account and tax preferences.

Once you've completed these few steps, you turn on the automation feature and set a date that you want the automation to begin.

And that's it.

But we realise some sellers will have questions and even need a little help to be sure they've completed everything right. For example, set the correct tax preferences. This is why we give all our customers a one-on-one onboarding session. Plus, we have a load of free resources to help you along the way, as well as email and chat support.

2. Xero: Best Affordable, All-Round Accounting Solution

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Xero is one of the more well-known accounting and tax software for Amazon sellers out there. Through it, you can do a tonne of accounting-related tasks, which we'll go through in a moment.

Suitable for small businesses and large, you can easily connect your Xero account to your Amazon account through a third-party app like Link My Books. Businesses can keep track of their financial health, and also add bills and receipts to the software so that all expenses are accounted for, both online and offline.

Features

• Submit VAT returns to HMRC
• Good Range of Learning Resources
• Optional Extras for Added Functionality

Submit VAT Returns to HMRC

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Xero is an advocate for the Making Tax Digital campaign. To this end, Amazon sellers can submit their VAT returns to the HMRC directly through the Xero tax software. As well as working out your VAT, you can manually make changes to your returns if needed. For example, on items like invoices and bills.

Once you're happy with your VAT return, you can go ahead and submit it without having to visit the HMRC website. You'll be able to access your VAT returns via your Xero account for seven years. This way, you can refer back to them to check on the financial progress of your Amazon business.

Good Range of Learning Resources

Xero has a generous selection of learning resources across its website. There are explainer videos discussing how different features work. These are practical guides as they show the features in action on the dashboard.

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If you want to become super Xero-savvy, you can opt for taking one of Xero's courses. Some of these are certified too. Course topics include the basics of using Xero, setting up your small business with Xero, and Xero payroll certification. The Learning resources also include webinars and events, as well as a good selection of articles.

Xero has a vibrant community support forum where users can discuss a huge variety of related topics. Xero staff get involved in these discussions and answer questions that Amazon sellers may have about the software.

Optional Extras for Added Functionality

As an Amazon seller, you're unlikely to need all that Xero has to offer. Xero has some optional extras so that you can customise your plan with the features you need. Two notable ones that might be useful for Amazon businesses are Analytics Plus and Claim expenses.

Analytics Plus uses AI to give sellers access to more data that allows them to track their cash flow. It also gives handy financial forecasts up to 90 days into the future. The Claim expenses feature, on the other hand, enables Xero users to manage their business expenses. For example, you can upload product receipts and claim the costs back.

3. Quickbooks: Best for a Feature-Rich, Professional Solution

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QuickBooks is similar to Xero. It also connects to your Amazon account through a software like Link My Books. The accounting and tax compliance software enables businesses to prepare their self-assessments, as well as submit their VAT returns.

QuickBooks is a little more comprehensive than Xero, with a few more inclusive features. For example, businesses can get income tax estimates and can check for errors using the VAT error checker.

Features

• Submit VAT to HMRC plus VAT Error Checker
• Self-Assessment Preparation and Income Tax Estimates
• Support and Training

Submit Vat to HMRC

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Once they've completed their VAT registration via the HMRC, Amazon sellers can manage and submit their VAT reports through the QuickBooks software. Like Xero, QuickBooks is committed to making tax digital. It therefore features HMRC compatible software.

To help with this process, QuickBooks has a VAT error checker amongst its tax software tools. This tool identifies duplicate, missing, inconsistent, or incomplete information within your sales data. The VAT error checker helps ensure your VAT declaration is correct every time.

Self-Assessment Preparation and Income Tax Estimates

QuickBooks will help you prepare for your self-assessments for optimum sales tax compliance. The tax software categorises your transactions and calculates the estimated amount of income tax and National Insurance you'll have to pay - no more nasty surprises. On top of that, QuickBooks reconciles with your bank account to automatically add transactions to the software.

Users can view, track, and manage their transactions in real time, so they always have a clear picture of their finances.

Support and Training

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QuickBooks tax software can be a little hard-going for beginners because of its complexity and number of capabilities. Therefore, it's generally considered a good idea to have a decent grasp of accounting before using it. Luckily, QuickBooks has learning and training materials in its support centre for users to get stuck into.

You can get support through:

• Articles
• Webinars
• Tutorial videos
• Live training classes

Alternatively, QuickBooks offers the option of finding an expert accountant to help with your needs.

4. Avalara: Best for International Sales Tax Compliance

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Avalara is one of the best tax software for international Amazon sellers. It has a range of solutions to help you stay on top of your sales tax rates, no matter where in the world your business operates. It covers 190 countries, consistently keeping track of rate changes.

Avalara is designed just for merchants and provides an omnichannel tax management experience. It has automation at its core. The software automatically calculates what you need to pay according to country and State including, but not limited to:

• Sales tax and Value Added Tax (VAT)
• Customs and duties (you can pay these upfront to minimise delays)
• Consumer use tax
• Communications tax
• Goods and services tax

Avalara integrates with your e Commerce platforms so that transaction data is collected automatically. As an advanced sales tax returns software, customers can access a sales tax returns dashboard where they can automatically file their sales tax and make payments. Avalara also allows businesses access to VAT reporting features with either cloud-based or in-house solutions.

5. HelloTax: Best for Tax Compliance Across European Markets

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HelloTax is built for European markets, helping Amazon sellers across Europe stay compliant to tax regulations and laws. It has a 'one-stop-shop' where you can simplify your tax-related tasks with automated features, and VAT registration and filing capabilities.

The HelloTax team is very hands-on with its customers. It provides a personalised service with an account manager and free accounting consultations, depending on your chosen plan. If you opt for the complete one-stop-shop solution, a qualified accountant will even file your returns for you.

Another neat feature of HelloTax is its Tax Letter Inbox, which you'll find in your dashboard. When you receive correspondents from tax authorities, the ORC mechanism turns them into documents that you can edit. It extracts the information, like payments, deadlines, and tasks to do, and clearly displays them so you can easily refer back to them as needed.

Plus, the tax information reporting software also translates documents into English for you.

TaxJar: Best for Scaling Businesses

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TaxJar is a sales tax software owned by the payment processing platform, Stripe. It has a number of products to assist with your tax-related activities. For example, it automatically calculates your sales taxes for you. This process is instant, which means your customers always see the correct amount of tax on their order at the checkout.

TaxJar is powerful enough to apply the correct amount of tax to orders, regardless of how many customers are checking out at the same time. This makes it one of the best tax software for transparency; showing the amount of sales tax collected in real-time.

If you're looking for tax software tools that let you automatically file your sales tax return, TaxJar might be the solution for you. Not only that though, but it also automatically submits remittances, so you don't have to worry about missing Amazon sales tax deadlines and getting late penalties.

How to Choose the Best Amazon Seller Tax Software for you

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So how do you choose the best tax software to help you with your sales tax compliance and tax processes? There are no hard and fast rules when it comes to tax software options for Amazon sellers. There are, however, some factors to take into account:

• Features: Some tax software enables you to file taxes effortlessly, while others are more focused on Amazon accounting and bookkeeping management. Ultimately, the best tax software for Amazon sellers will have the features that will help you the most. Consider the e Commerce platforms it integrates with, its overall Amazon tax management capabilities, as well as the level of automation. This will be invaluable for saving time.
• Geographical location: As you've seen in this list, complying with tax laws across countries needs specialised software. If you're selling all over the world, you'll need a robust solution that applies the correct tax rates wherever you sell. Link My Books, for example, was created with different Amazon marketplaces in mind. Therefore, whether your Amazon business operates in Europe, North America, or East Asia, you can rest assured you're meeting your tax obligations.‍
• Business size and budget: If you're a small Amazon business or a start up, you'll likely have a very small budget to work with. You need a set-up that gives you as much automation as possible, while keeping costs low. A big end-to-end solution with all the bells and whistles might not be appropriate. But that's OK. Start small and pick a solution that you can scale easily when the time comes.‍
• Integrations: Does your chosen solution connect directly to Amazon? What about your other sales processes? Avalara, for example, integrates with Salesforce and Microsoft products, as well as e Commerce platforms. On the other hand, there are more than 1,000 integrations on the Xero app store.

These help you manage a host of business aspects including payroll, your CRM, and your payment processes. Although it doesn't connect directly to Amazon, Xero has a Link My Books integration right there in the app store. This will allow you to connect the accounting software to your Amazon account with ease.

Why choose Link My Books with Xero or QuickBooks as an Amazon Sales Tax Software?

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Pairing Link My Books with Xero or QuickBooks allows you to streamline your accounting and tax processes. Our software connects with the most comprehensive and popular accounting software options available so that all your transaction data is collected and recorded properly.

And 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.

But it's not just what Link My Books can do for your Amazon Bookkeeping that makes it special. We also pride ourselves in our outstanding customer support. We ensure every single customer is set up for bookkeeping success through our dedicated support team, onboarding sessions, and user-friendly interface. All this at a very reasonable cost. What more could you want?

In a nutshell:

• Streamline your accounting and tax processes with automatic data transfers and tax calculations.
• Receive outstanding customer support.
• Get up and running quickly with a free on-boarding session. 
• Excellent value for money.

Getting started with Link My Books for Amazon Bookkeeping

There are so many tax software options out there that are designed to help you with your tax tasks. We've looked at six solutions today. You need to pay special attention to each one's features because they can vary dramatically from one to another. You also need to consider the cost of each software, and whether it'll be easy to continue using it as your business grows.

Link My Books is a simple yet powerful solution that connects your bookkeeping software with your Amazon account, however many marketplaces you have. With Link My Books, you can calculate your taxes automatically, and export sales data directly to your Xero or QuickBooks account.

You can get started with Link My Books for free today and register for a two-week trial. If you have any questions before signing up, feel free to reach out to our dedicated support team.