E-Commerce Tax Reporting Software Comparison 2023

Shopify is a popular e-commerce platform that is used by thousands of businesses around the world. One of the key features of Shopify is its ability to help merchants automate their sales tax collection and reporting. However, to make this process even more accessible, several tax reporting apps on the Shopify app store can help merchants streamline their tax reporting and compliance.

TaxJar
One of the most popular tax reporting apps on the Shopify app store is TaxJar. TaxJar offers various features to help merchants with their tax reporting needs. The app automatically calculates sales tax rates for every state and jurisdiction in the US and can generate detailed sales tax reports for merchants. TaxJar offers integrations with other popular e-commerce platforms, such as Amazon and Etsy, making it an excellent choice for merchants who sell on multiple platforms.

Avalara
Another popular tax reporting app on the Shopify app store is Avalara. Avalara is a cloud-based software that provides real-time sales tax rates and calculates tax amounts for each transaction. The app integrates with shopping cart platforms, including Shopify, to automatically apply the correct sales tax rate at checkout. Avalara offers a range of compliance services, including filing sales tax returns and providing audit support.

Taxify
For merchants who need more robust tax reporting and compliance features, there is Taxify by Sovos. Taxify by Sovos provides automated sales tax compliance services for businesses of all sizes. The app integrates with Shopify to help merchants calculate sales tax and file returns in real time. Additionally, Taxify by Sovos provides audit support and can help merchants deal with any issues that arise during a tax audit.

Shopify Tax Reports
Finally, there is the Shopify Tax Reports app for merchants looking for a free tax reporting solution. This app is built into the Shopify platform and provides basic sales tax reports to merchants. The app can calculate sales tax based on a merchant’s or customer’s shipping address. While this app is a good option for small businesses with basic tax reporting needs, more is needed for larger companies with more complex tax reporting requirements.

Let’s take a look at the side-by-side cost and feature comparison of the top contenders:

App Name	Monthly Cost	Features
Avalara	Starting at $50/month	Automated tax calculations and reporting, multi-state compliance, tax-exempt sales management, customer and product taxability options, return filing and remittance, audit support.
TaxJar	Starting at $19/month	Automated sales tax calculations and reporting, multi-state compliance, tax-exempt sales management, customer and product taxability options, return filing and remittance, API access.
Quaderno	Starting at $49/month	Automated tax calculations and reporting, multi-state compliance, tax-exempt sales management, customer and product taxability options, return filing and remittance, invoice generation and delivery, multi-currency support.
Taxify	Starting at $10/month	Automated tax calculations and reporting, multi-state compliance, tax-exempt sales management, customer and product taxability options, return filing and remittance, user-friendly interface.
TaxTools	Starting at $9.95/month	Automated tax calculations and reporting, multi-state compliance, tax-exempt sales management, customer and product taxability options, return filing and remittance, Shopify POS integration.

*It’s important to note that the cost and features of each app can vary depending on the size and needs of your business. It’s also a good idea to research each app thoroughly to ensure it meets your specific tax reporting needs.

In conclusion, if you’re a Shopify merchant looking to streamline your tax reporting and compliance processes, a range of tax reporting apps are available on the Shopify app store. From basic sales tax reporting to more robust compliance services, there is an app to suit the needs of every business. Be sure to evaluate your options carefully and choose the app that best meets your needs and budget.