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Best WooCommerce Sales Tax Plugins

Best WooCommerce Sales Tax Plugins

Last Updated on April 11, 2022 by DMEditor

If you are a business owner who sells products online, then you need to be aware of sales tax. In most cases, sales tax must be collected and paid to the government on items that are sold. This can be a complex process, especially if you are using WooCommerce to run your eCommerce store.

Unfortunately, when it comes to online stores, sales tax can be, if possible, even more, complicated. In the United States, sales tax is a tax that is charged by the state on certain goods and services. Each state has its own set of rules and regulations when it comes to sales tax and this can make things incredibly confusing for salespeople and product owners. But, this is where WooCommerce sales tax plugins come in super handy.

In this blog post, we will discuss what WooCommerce sales tax is and what to look for in a WooCommerce sales tax plugin. We will also recommend some of the top product recommendations for WooCommerce sales taxes!

Bottom Line Up Front

The best WooCommerce sales tax plugins are those that make tax compliance easier for online sellers. Our top product recommendations include TaxJar, WooCommerce AvaTax, and Quaderno. All of these plugins are designed to help online sellers automate their tax compliance efforts and make it easier to stay compliant with sales and use tax laws.

What Are the Different Types of WooCommerce Sales Tax Plugins?

So, let’s go over some of the different types of WooCommerce sales tax plugins.

  • The first type of plugin is the flat-rate sales tax plugin. This type of plugin allows you to charge a fixed amount of sales tax on all of your products.
  • The second type of plugin is the percentage-based sales tax plugin. This type of plugin allows you to charge a percentage of the product price as sales tax.
  • The third type of plugin is the state-based sales tax plugin. This type of plugin allows you to charge the sales tax that is specific to your state.

The type of WooCommerce sales tax plugin that you choose will depend on the rules and regulations of your state, as well as your business needs. It’s also worth considering the size of your business and the number of products that you sell.

Our top WooCommerce Sales Tax Plugin recommendations

So, without further ado, let’s go over some of the best WooCommerce sales tax plugins that you can use with your business:

TaxJar

Taxjar is a popular WooCommerce sales tax plugin that has been used by millions of businesses around the world. It is a cloud-based solution that allows you to collect and manage sales tax for your store. In addition, Taxjar also helps you to file sales tax returns and stay up to date on any changes to the sales tax laws.

TaxJar is a popular plugin because it is easy to use and it has a lot of features that can help you to manage your sales tax. For example, if you operate a business in the United States, the economic nexus calculation may be time-consuming.

However, TaxJar has a hold over 14000 taxing jurisdictions, making it a breeze. You can also use TaxJar to automate your tax filing and AI-enabled tax categorization. Plus, TaxJar allows you to auto-file your state sales tax return every month, quarterly, and yearly for a fee.

Some of the features include:

  • Automatic sales tax calculation
  • Product exclusion rules
  • Makes tax reporting and filing much simpler
  • TaxJar reports
  • Automated return filing
  • WooCommerce plugin is free
  • Sales tax exemption certificates

If you are looking for a good WooCommerce sales tax plugin, then TaxJar is a good option to consider.

Pros:

  • Easy to use
  • Lots of features
  • Cloud-based solution
  • Free plugin
  • Plenty of automation features

Cons:

  • Subscription required for some features

Quaderno

Another of the top WooCommerce sales tax plugins, Quaderno is a cloud-based solution that helps you to manage sales tax for your WooCommerce store. It offers a simple, easy-to-use interface and it integrates with a variety of accounting software, making it a great choice for businesses of all sizes.

It enables the software to track real-time sales taxes in every country where the client operates, according to local tax rules. You’ll also avoid the hassle of calculating the appropriate tax amount for transactions and invoices.

Customers are automatically charged tax based on their location and the items in their carts, which are calculated instantaneously. This implies that you won’t have to submit distinct tax rates for various locations. This integration may help you comply with the tax regulations in several countries, including the United States, Canada, the European Union, and Australia.

In addition, Quaderno can also help you to file sales tax returns and stay up to date on any changes to the sales tax laws.

Some of the top features include:

  • Integrates with a variety of accounting software
  • Real-time tracking of sales taxes
  • Helps to file sales tax returns
  • Stays up to date on changes to the sales tax laws

Pros:

  • Faster returns filing
  • Calculate sales tax automatically based on the customer’s location.
  • It informs you of any tax rule changes so that you can stay up to date.
  • Easily manage tax internationally

Cons:

  • Pricing can be a little confusing
  • Not as many features as other plugins

WooCommerce Taxamo

WooCommerce Taxamo is one of WooCommerce’s most popular plugins. This plugin connects your WooCommerce store to Taxamo, a VAT calculation service that transmits the correct tax data when a customer is at the checkout stage. This can be used to automatically calculate and charge VAT for customers in the European Union, as well as other countries that are part of the Single Market.

Taxamo is a company that specializes in taxes for small business owners. Taxamo will automatically send the information on the items in a Cart to Taxamo, which will return tax details before the customer checks out. Furthermore, the plugin aids in the gathering of evidence and payment registrations and you’ll be able to produce returns and audit files quickly since you can use the templates that come with this program.

It is applicable to all sorts of items, including eBooks and downloadable content. It is also in line with EU VAT MOSS rules, which mandate that digital items be taxed based on the consumer’s location rather than the shop’s.

Some of the top features include:

  • Connects to Taxamo
  • Sends correct tax data to Taxamo
  • Aids in gathering evidence and payment registrations
  • Produces returns and audit files quickly
  • Applies to all sorts of items, including eBooks and downloadable content
  • In line with EU VAT MOSS rules

Pros:

  • Very popular plugin
  • Automatic tax calculation for customers in the European Union
  • Helps you to create downloadable returns and audit files
  • It’s simple to capture location evidence using the product

Cons:

  • Does not work with all accounting software
  • Not as many features as other plugins

WooCommerce AvaTax

WooCommerce AvaTax is a free automated tax calculator that works in conjunction with WooCommerce and Avalara AvaTax (although you’ll need a paid Avalara Account). It is designed to make tax compliance easier for online sellers. But Not only does it make tax preparation a lot easier, but it also provides you with the most up-to-date tax rates based on your location. It can also calculate your sales tax risks and save all of your data so that your return preparation is simple.

AvaTax is a cloud-based tax service that helps businesses to stay compliant with sales and use tax laws in the United States, Canada, and the European Union. It does this by providing real-time tax rates for more than 11,000 jurisdictions in North America and 200 jurisdictions in the European Union.

Once you have installed the plugin, you will need to create an account with Avalara and enter your license key. You can then connect your WooCommerce store to AvaTax and start automatically calculating taxes.

Some of the top features include:

  • Connects to WooCommerce and Avalara AvaTax
  • Automatically calculates taxes
  • Provides real-time tax rates
  • Calculates sales tax risks
  • Saves data for return preparation
  • Works in the United States, Canada, and the European Union

Pros:

  • Very popular plugin
  • Automatic tax calculation for customers in the United States, Canada, and the European Union
  • The program has easy-to-understand instructions and fast support
  • Helps you to save data for return preparation
  • There’s no need to manually enter different tax rates.
  • Very simple installation process
  • They offer a free trial

Cons:

  • Mixed opinions about the quality of the support

EU VAT Number

This WooCommerce sales tax plugin is designed specifically for businesses that need to collect and submit EU VAT numbers. EU VAT Number is a paid WooCommerce add-on that works well if you and your clients are in the EU.

The European Commission’s VIES VAT number verification service allows your clients to eliminate taxes by entering a valid VAT number. EU VAT Number allows your clients to do this and you can also embed a field for customers to enter their VAT number right at the checkout stage. Furthermore, EU VAT Number is simple to utilize and easy to install.

Some of the top features include:

  • Adds a field for customers to enter their VAT number
  • Verifies EU VAT numbers with the European Commission’s VIES VAT number verification service
  • Embeds a field for customers to enter their VAT number right at the checkout stage
  • Simplifies tax collection and submission for businesses in the EU

Pros:

  • It’s very easy to use this plugin
  • Embeds a field for customers to enter their VAT number right at the checkout stage

Cons:

  • Only works for businesses in the EU
  • Paid plugin

What Criteria Did We Use to Come up With These Suggestions?

We used a range of criteria to come up with our list of the best WooCommerce sales tax plugins. The most important factors were:

  • Ease of use – We looked for plugins that are easy to install and use, with clear instructions and fast support if you need it.
  • Automatic tax calculation – We looked for plugins that automatically calculate taxes for customers in the United States, Canada, and the European Union.
  • Real-time tax rates – We looked for plugins that provide real-time tax rates so you always have the most up-to-date information.
  • Saves data for return preparation – We looked for plugins that save data so tax preparation is simple.
  • Works in multiple jurisdictions – We looked for plugins that work in multiple jurisdictions, so you can be compliant with tax laws in any location.

We also considered reviews from other customers because nothing is more important than getting first-hand experience from people who have actually used the plugin.

What Should You Look for in a WooCommerce Sales Tax Plugin?

So, now that we’ve talked about what a WooCommerce Sales Tax Plugin is and some of the top plugins on the market, what should you look for when choosing one for your business?

Here are a few things to keep in mind:

Type of tax it supports

This is vital for anyone looking for a plugin. Make sure that the plugin you choose supports the type of tax you are currently charging or want to start charging. This can vary greatly depending on the country you are in and the type of business you have.

Ease of use

This is key for any business owner. The plugin should be easy to install and even easier to use. The last thing you want is a plugin that is difficult to navigate or takes a long time to figure out how to use. You don’t want to spend hours trying to get it set up correctly and then more time trying to figure out how it works. So, ease of use is essential.

Support

This is another important factor to consider when choosing a plugin. Make sure that the plugin you choose has good support in case you have any questions or run into any problems. You should be able to easily reach someone who can help you resolve any issues.

Automation

Automation is a great way to improve your processes and save time. Look for a plugin that offers automation features so you can take care of all the tax calculations without having to do them manually. This will save you time and allow you to focus on other important tasks.

Integrations

Easing your WooCommerce sales tax plugin into your existing workflow is a great way to improve efficiency. Look for a plugin that integrates well with the other tools you are using and makes tax collection and submission a breeze.

How often is it updated?

It’s also important to ensure that the plugins that you are considering are frequently updated. This means that the developers are continuing to work on it and adding new features. It also shows that they are keeping up with the ever-changing landscape of sales tax laws.

Accuracy

That ties directly into the accuracy of the platform. Make sure that the plugin you choose is accurate and up-to-date with the latest sales tax laws. This will help to ensure that your taxes are calculated correctly and that you aren’t missing out on any deductions or credits.

Features

Of course, the features of the plugin are another important consideration. Make sure that the plugin you choose has all the features you need to manage your sales tax efficiently. For instance, the plugin should use data to calculate the amount of sales tax that needs to be charged on each product.

In addition, the plugin can also help you to file sales tax returns and stay up to date on any changes to the sales tax laws. But how in-depth the feature set is for these plugins can effectively make or break your experience with them.

Compatible with accounting software

It’s also a good idea to find a plugin that is compatible with your accounting software. This will serve several purposes. Firstly, it will make your experience with the plugin much better as you’ll be able to link it with your existing workflow.

Secondly, it will make it easier to keep track of all your sales tax data in one place. And finally, it will make tax season much less stressful as compatibility usually means compatibility with tax laws as well as other software which can save you a lot of additional admin work.

Compliance

Next, compliance is a key factor to consider. Make sure that the plugin you choose is compliant with all the relevant laws and regulations in your area. Particularly as, when it comes to running a business, compliance is often incredibly important o avoid being shut down. So, you need to make sure you are using a plugin that can abide by regulations and keep you out of hot water.

Price

Finally, price is always a consideration when choosing anything. Make sure that the plugin you choose is affordable and within your budget. There are a lot of great plugins out there, but make sure that you don’t break the bank in order to get one.

FAQs

Question: Can I use my accounting software with a WooCommerce Sales Tax Plugin?

Answer: Yes, many WooCommerce Sales Tax Plugins are compatible with popular accounting software packages. This will make it easier to keep track of all your sales tax data in one place.

Question: Is there a free WooCommerce sales tax plugin?

Answer: Technically there is a free WooCommerce sales tax plugin – the WooCommerce AvaTax plugin is free, but in order to use it, you’ll need an account with Alvara. As this is a paid tool, there will still be a cost associated with this method.

Question: Which is better – a WooCommerce sales tax plugin or an accounts payable software?

Answer: It really depends on your needs. If you are looking for something specific to help with sales tax, then a WooCommerce sales tax plugin would be the better choice. However, if you are looking for something more comprehensive to help manage all aspects of your finances, then accounts payable software would be a better choice.

Question: I’m not sure if I need a WooCommerce sales tax plugin. What should I do?

Answer: The best way to determine if you need a WooCommerce sales tax plugin is to speak with an accountant or tax professional. They will be able to assess your needs and make a recommendation based on your specific circumstances.

Question: What is the average price of a WoCommerce sales tax plugin?

Answer: The average price of a WooCommerce sales tax plugin is around $100. However, there are many plugins available at various price points. You should consider the features and integrations offered by each plugin before making your decision.

Best WooCommerce Sales Tax Plugins: Conclusion…

When it comes to sales tax, it can be a pain point for a lot of businesses. There is no one-size-fits-all solution, but it’s something that all legal companies have to deal with – so there are a lot of options. Particularly when it comes to online stores (which are becoming more and more frequent) like WooCommerce.

The best WooCommerce sales tax plugin for your business will depend on the rules and regulations of your state, as well as your business needs. Make sure to consider the factors listed above when making your decision.

All of the products listed above are great WooCommerce sales tax plugins, however, some of the top plugins include TaxJar, WooCommerce AvaTax, and Quaderno. These plugins offer a wide range of features and integrations, ensuring that you find the perfect plugin for your business. However, be sure to compare the tools and features before making your final decision.

We hope this blog article was helpful and provided you with some valuable information on the best WooCommerce sales tax plugins. Thanks for reading!

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