Quick Overview
- 1#1: Avalara - Automates VAT determination, compliance, filing, and reporting for global businesses across multiple jurisdictions.
- 2#2: Sovos - Delivers comprehensive VAT and sales tax compliance solutions with real-time calculations and e-invoicing.
- 3#3: Vertex - Provides unified enterprise tax technology for accurate VAT calculations, returns, and indirect tax management.
- 4#4: Thomson Reuters ONESOURCE - Offers advanced VAT compliance software with determination, reporting, and global indirect tax automation.
- 5#5: Wolters Kluwer OneSource Indirect Tax - Manages VAT calculations, reclaim, and compliance reporting for multinational enterprises.
- 6#6: Pagero - Cloud platform for automated e-invoicing, VAT reporting, and global tax compliance.
- 7#7: Taxually - Streamlines VAT registration, calculations, and filings for cross-border e-commerce businesses.
- 8#8: Quaderno - Automates VAT and sales tax compliance for SaaS, digital services, and online sales.
- 9#9: Xero - Cloud accounting software with robust VAT tracking, MTD integration, and automated returns.
- 10#10: QuickBooks Online - Handles VAT calculations, invoicing, and HMRC-compliant reporting for small businesses.
Tools were evaluated based on feature depth (automation, reporting, e-invoicing), ease of use, scalability, and value, ensuring they cater to both global enterprises and small-to-medium businesses with varying tax complexity requirements.
Comparison Table
Navigating value-added tax (VAT) compliance requires specialized tools, making a comparison of leading solutions essential for accuracy and efficiency. This table features Avalara, Sovos, Vertex, Thomson Reuters ONESOURCE, Wolters Kluwer OneSource Indirect Tax, and more, outlining key capabilities to help readers identify the right fit for their business needs.
| # | Tool | Category | Overall | Features | Ease of Use | Value |
|---|---|---|---|---|---|---|
| 1 | Avalara Automates VAT determination, compliance, filing, and reporting for global businesses across multiple jurisdictions. | enterprise | 9.7/10 | 9.8/10 | 8.6/10 | 9.2/10 |
| 2 | Sovos Delivers comprehensive VAT and sales tax compliance solutions with real-time calculations and e-invoicing. | enterprise | 9.4/10 | 9.7/10 | 8.5/10 | 8.8/10 |
| 3 | Vertex Provides unified enterprise tax technology for accurate VAT calculations, returns, and indirect tax management. | enterprise | 8.6/10 | 9.2/10 | 7.4/10 | 8.1/10 |
| 4 | Thomson Reuters ONESOURCE Offers advanced VAT compliance software with determination, reporting, and global indirect tax automation. | enterprise | 8.4/10 | 9.1/10 | 7.2/10 | 7.8/10 |
| 5 | Wolters Kluwer OneSource Indirect Tax Manages VAT calculations, reclaim, and compliance reporting for multinational enterprises. | enterprise | 8.7/10 | 9.2/10 | 7.8/10 | 8.1/10 |
| 6 | Pagero Cloud platform for automated e-invoicing, VAT reporting, and global tax compliance. | specialized | 8.3/10 | 9.1/10 | 7.6/10 | 7.9/10 |
| 7 | Taxually Streamlines VAT registration, calculations, and filings for cross-border e-commerce businesses. | specialized | 8.3/10 | 9.1/10 | 8.2/10 | 7.6/10 |
| 8 | Quaderno Automates VAT and sales tax compliance for SaaS, digital services, and online sales. | specialized | 8.2/10 | 8.5/10 | 8.0/10 | 7.8/10 |
| 9 | Xero Cloud accounting software with robust VAT tracking, MTD integration, and automated returns. | other | 8.3/10 | 8.0/10 | 9.1/10 | 7.7/10 |
| 10 | QuickBooks Online Handles VAT calculations, invoicing, and HMRC-compliant reporting for small businesses. | other | 7.4/10 | 7.2/10 | 8.5/10 | 6.8/10 |
Automates VAT determination, compliance, filing, and reporting for global businesses across multiple jurisdictions.
Delivers comprehensive VAT and sales tax compliance solutions with real-time calculations and e-invoicing.
Provides unified enterprise tax technology for accurate VAT calculations, returns, and indirect tax management.
Offers advanced VAT compliance software with determination, reporting, and global indirect tax automation.
Manages VAT calculations, reclaim, and compliance reporting for multinational enterprises.
Cloud platform for automated e-invoicing, VAT reporting, and global tax compliance.
Streamlines VAT registration, calculations, and filings for cross-border e-commerce businesses.
Automates VAT and sales tax compliance for SaaS, digital services, and online sales.
Cloud accounting software with robust VAT tracking, MTD integration, and automated returns.
Handles VAT calculations, invoicing, and HMRC-compliant reporting for small businesses.
Avalara
enterpriseAutomates VAT determination, compliance, filing, and reporting for global businesses across multiple jurisdictions.
AvaTax Global engine for real-time, jurisdiction-specific VAT calculations including intra-EU and OSS/IOSS compliance
Avalara is a comprehensive tax compliance automation platform specializing in VAT management for businesses with international sales. It automates real-time VAT calculations, registration, reporting, and filing across 190+ countries, handling complex rules like OSS/IOSS and digital services VAT. The platform integrates with over 1,200 applications, including major ERPs, e-commerce platforms, and accounting software, ensuring seamless compliance at scale.
Pros
- Extensive global VAT coverage in 190+ countries with real-time calculations
- Seamless integrations with 1,200+ apps including Shopify, SAP, and QuickBooks
- Automated filing, remittances, and exemption certificate management
Cons
- High cost for small businesses with low transaction volumes
- Steep initial setup and configuration for complex operations
- Occasional delays in customer support response times
Best For
Mid-to-large enterprises and e-commerce businesses with cross-border sales requiring robust, automated VAT compliance.
Pricing
Custom subscription pricing based on transaction volume and features; starts at ~$50/month for basics, scales to enterprise levels ($10K+/year).
Sovos
enterpriseDelivers comprehensive VAT and sales tax compliance solutions with real-time calculations and e-invoicing.
Sovos One platform's unified global e-invoicing network supporting real-time CTC in 60+ countries
Sovos is a comprehensive enterprise-grade VAT compliance platform that automates global indirect tax determination, real-time reporting, e-invoicing, and continuous transaction controls across over 100 countries. It integrates seamlessly with major ERPs like SAP, Oracle, and Microsoft Dynamics, ensuring accurate VAT calculations and localized compliance submissions such as SAF-T and Peppol. Designed for complex multinational operations, Sovos minimizes compliance risks and penalties through AI-driven validation and anomaly detection.
Pros
- Extensive global coverage with localization for 100+ jurisdictions
- Seamless ERP integrations and real-time VAT determination
- Robust e-invoicing and CTC capabilities reducing manual errors
Cons
- High cost suitable only for enterprises
- Steep learning curve for initial setup and configuration
- Limited flexibility for SMBs without complex needs
Best For
Multinational enterprises with high-volume international transactions requiring end-to-end automated VAT compliance.
Pricing
Custom enterprise pricing, typically subscription-based starting at $50,000+ annually depending on volume and modules.
Vertex
enterpriseProvides unified enterprise tax technology for accurate VAT calculations, returns, and indirect tax management.
Real-time VAT engine with jurisdiction-specific rules and daily-updated global tax content library
Vertex, from Vertex Inc., is an enterprise-grade tax technology platform focused on indirect tax compliance, including VAT determination, reporting, and filing across 190+ countries. It automates complex VAT calculations in real-time, integrates deeply with ERPs like SAP and Oracle, and supports intricate global supply chains. The solution ensures accuracy with a vast, continuously updated tax content library and AI-driven exception handling.
Pros
- Extensive global VAT coverage with real-time calculations for 190+ jurisdictions
- Seamless ERP integrations and automation reducing manual errors
- Robust audit trail and compliance reporting tools
Cons
- High implementation time and costs for setup
- Steep learning curve for non-enterprise users
- Pricing not transparent, geared toward large-scale deployments
Best For
Multinational enterprises with complex, high-volume VAT compliance needs across diverse jurisdictions.
Pricing
Custom enterprise pricing via quote; typically $100K+ annually based on transaction volume, users, and jurisdictions.
Thomson Reuters ONESOURCE
enterpriseOffers advanced VAT compliance software with determination, reporting, and global indirect tax automation.
Real-time VAT determination engine with deep ERP integrations for automated, accurate calculations in live transactions
Thomson Reuters ONESOURCE is an enterprise-grade indirect tax management platform specializing in VAT compliance, offering automated tax calculations, return preparation, and filing across over 100 countries. It integrates seamlessly with major ERP systems like SAP and Oracle for real-time VAT determination and reporting. The solution provides robust audit trails, scenario modeling, and analytics to support complex multinational tax operations.
Pros
- Extensive global VAT coverage with jurisdiction-specific rules and updates
- Seamless integrations with ERPs for real-time processing
- Advanced reporting, analytics, and audit-ready documentation
Cons
- High cost suitable only for large enterprises
- Steep learning curve and complex initial setup
- Limited flexibility for small businesses or simple VAT needs
Best For
Multinational corporations with complex, high-volume VAT compliance requirements across multiple jurisdictions.
Pricing
Custom enterprise subscription pricing, typically starting at $50,000+ annually based on modules, users, and jurisdictions.
Wolters Kluwer OneSource Indirect Tax
enterpriseManages VAT calculations, reclaim, and compliance reporting for multinational enterprises.
Daily-updated Global Tax Content Library ensuring accuracy with the latest VAT regulation changes
Wolters Kluwer OneSource Indirect Tax is a robust enterprise-grade VAT compliance platform that automates indirect tax calculations, reporting, and filing across more than 170 jurisdictions worldwide. It integrates seamlessly with major ERP systems like SAP and Oracle, providing real-time tax determination and handling complex scenarios such as cross-border transactions and intrastat reporting. Designed for multinational organizations, it ensures compliance with evolving global VAT regulations through daily-updated tax content libraries.
Pros
- Extensive global coverage supporting 170+ countries with localized rules
- Seamless ERP integrations and real-time tax calculations
- Automated VAT return preparation and e-filing capabilities
Cons
- Steep learning curve and complex initial setup for non-experts
- High cost suitable only for large enterprises
- Limited customization options for niche requirements
Best For
Multinational corporations with complex, high-volume VAT compliance needs across multiple jurisdictions.
Pricing
Enterprise-level custom pricing, typically starting at $50,000+ annually based on modules, users, and jurisdictions.
Pagero
specializedCloud platform for automated e-invoicing, VAT reporting, and global tax compliance.
Pagero Network: A global e-invoicing interchange connecting to 70,000+ partners for seamless cross-border compliance.
Pagero is a comprehensive e-invoicing and VAT compliance platform designed for global businesses, automating indirect tax processes like VAT reporting, real-time reporting, and e-invoicing across over 60 countries. It integrates seamlessly with major ERP systems such as SAP, Oracle, and Microsoft Dynamics, ensuring accurate data synchronization and compliance with local regulations including Peppol and country-specific mandates. The cloud-based solution also provides archiving, validation, and audit-ready reporting to minimize errors and penalties.
Pros
- Extensive global VAT compliance in 60+ countries
- Deep integrations with leading ERPs
- Robust e-invoicing network with real-time capabilities
Cons
- Complex initial setup and configuration
- Pricing can be high for smaller businesses
- User interface feels dated in some areas
Best For
Multinational enterprises with complex international VAT needs and existing ERP systems.
Pricing
Quote-based enterprise pricing starting around €5,000-€20,000 annually depending on transaction volume, countries, and modules.
Taxually
specializedStreamlines VAT registration, calculations, and filings for cross-border e-commerce businesses.
Real-time VAT Engine for precise calculations at checkout across global jurisdictions
Taxually is a VAT compliance platform tailored for e-commerce and digital businesses handling cross-border sales. It automates real-time VAT calculations, registrations, returns, and reimbursements across 190+ countries, ensuring compliance with schemes like VAT OSS, IOSS, and MOSS. The software integrates with platforms like Shopify, Amazon, and WooCommerce to streamline invoicing and reporting.
Pros
- Comprehensive coverage of 190+ countries and VAT schemes
- Seamless integrations with major e-commerce platforms
- Automated VAT returns, gap analysis, and recovery services
Cons
- Quote-based pricing lacks transparency
- Complex setups may require professional assistance
- Limited free tier or trial options
Best For
Mid-sized e-commerce businesses with international sales volumes needing automated global VAT compliance.
Pricing
Custom quote-based pricing starting around €500/month based on transaction volume; enterprise plans available.
Quaderno
specializedAutomates VAT and sales tax compliance for SaaS, digital services, and online sales.
Direct VAT return filing to EU tax authorities via OSS/IOSS
Quaderno is a VAT compliance platform tailored for SaaS and digital product businesses, automating VAT calculations, invoicing, and reporting across 170+ countries including EU OSS and IOSS schemes. It integrates with payment processors like Stripe and Paddle to handle real-time tax compliance for global sales. The service also supports VAT return filings in select jurisdictions, simplifying international tax obligations for online sellers.
Pros
- Extensive global VAT rate coverage and real-time calculations
- Seamless integrations with major payment gateways
- Automated invoicing and basic VAT filing support
Cons
- Pricing scales quickly with invoice volume
- Primarily focused on digital sales, less ideal for physical goods
- Limited advanced reporting in lower-tier plans
Best For
SaaS providers and digital product sellers expanding into international markets who need straightforward VAT automation.
Pricing
Starts at $49/month for up to 100 invoices, with Pro at $99/month for 500 invoices and higher tiers or custom enterprise pricing based on volume.
Xero
otherCloud accounting software with robust VAT tracking, MTD integration, and automated returns.
Direct MTD connectivity for automated VAT return submissions to HMRC
Xero is a cloud-based accounting software that offers comprehensive VAT management tools, including automated VAT calculations on invoices, real-time tracking of input and output VAT, and generation of VAT returns. It excels in UK compliance with Making Tax Digital (MTD) integration, allowing seamless submission to HMRC. While primarily an all-in-one accounting solution, its VAT features support multi-currency transactions and customizable reporting for international businesses.
Pros
- Seamless MTD compliance and direct HMRC integration for UK VAT returns
- Intuitive interface with real-time VAT dashboards and reporting
- Strong bank feeds and automation for accurate VAT reconciliation
Cons
- Not a dedicated VAT tool, so advanced international VAT requires add-ons or integrations
- Subscription pricing escalates quickly for higher VAT transaction volumes
- Limited built-in support for complex VAT schemes like partial exemption without custom setup
Best For
UK-based small to medium businesses seeking integrated accounting with reliable VAT compliance and MTD functionality.
Pricing
Starts at £14/user/month (Early plan) up to £65/user/month (Ultimate plan); annual discounts available, with VAT features across all tiers.
QuickBooks Online
otherHandles VAT calculations, invoicing, and HMRC-compliant reporting for small businesses.
Direct integration with HMRC's Making Tax Digital for seamless VAT return filing
QuickBooks Online is a cloud-based accounting platform that includes robust VAT management tools, particularly for UK businesses, allowing users to track input and output VAT, generate compliant reports, and submit returns directly via Making Tax Digital (MTD). It automates VAT calculations on invoices and expenses, supports various VAT schemes like flat rate and margin, and integrates with bank feeds for accurate reconciliation. While primarily a full accounting solution, its VAT features make it suitable for small to medium businesses handling VAT compliance alongside bookkeeping.
Pros
- MTD-compliant VAT submissions directly to HMRC
- Automated VAT tracking on invoices, bills, and reports
- User-friendly interface with mobile app for on-the-go access
Cons
- Expensive for businesses needing only VAT tools without full accounting
- Limited support for complex multi-country VAT scenarios
- Steep learning curve for advanced customizations
Best For
Small to medium UK businesses seeking an all-in-one accounting solution with reliable VAT compliance.
Pricing
UK plans start at £15/month (Simple Start) up to £95/month (Advanced), billed annually; includes VAT features across all tiers.
Conclusion
This comparison of the top 10 VAT software positions Avalara as the leading choice, exceling in automating global determination, compliance, filing, and reporting for businesses across multiple jurisdictions. Closely following are Sovos, with its robust real-time calculations and e-invoicing, and Vertex, offering unified enterprise technology for accurate indirect tax management—each a standout option tailored to distinct needs. Whether a global corporation, cross-border e-commerce business, or small entity, the lineup provides efficient solutions to streamline VAT processes.
Begin your VAT management journey with the top-ranked tool, Avalara, to unlock seamless automation, accuracy, and simplified compliance
Tools Reviewed
All tools were independently evaluated for this comparison
