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7 Must-Have Features of Automated Tax Compliance Software

Learn the 7 key features your tax automation software should have to ensure compliance and support global growth.
tax software
VAT
Sales Tax
Author
Jenny Longmuir
Published
October 22, 2025
7 Must-Have Features of Automated Tax Compliance Software
Table of content

Key takeaways

  1. Automated tax compliance software reduces risk by keeping filings accurate, up to date, and aligned with global tax rules.
  2. Look for solutions that combine VAT automation, sales tax automation, and tax return automation in one scalable platform.
  3. The best providers pair automation with expert support, giving businesses confidence to expand into new markets. 

Tax compliance is no longer just about filing forms on time—it’s about managing constant regulatory changes, dealing with multiple jurisdictions, and avoiding the risk of penalties. For growing businesses, the old ways of handling compliance with spreadsheets and manual processes simply don’t work anymore.

That’s where automated tax compliance solutions come in. By leveraging tax automation software, businesses can simplify processes, reduce errors, and confidently scale into new markets. But with so many providers on the market, knowing which one to choose can feel overwhelming.

Here’s a detailed look at the essential features you should look for in a tax compliance solution—and why Taxually is designed to deliver them all.

1. Global coverage and scalability

Businesses selling internationally can’t afford to use software that only handles a handful of markets. Tax rules vary significantly between countries—not only in terms of rates but also in reporting obligations, filing frequencies, and required formats.

What to look for:

  • Coverage across all major global markets
  • Ability to support VAT automation and sales tax automation simultaneously
  • Flexible tools that scale as your business expands into new countries or channels

Taxually supports compliance in more than 150 jurisdictions, enabling businesses to confidently expand into new regions without worrying about the tax implications.

Taxually dashboard showing multi-country tax liabilities with transaction data, currencies, and approval options.

2. Automated filing and tax return automation

Preparing and filing tax returns manually is inefficient and risky. Errors in calculations, missing a deadline, or misunderstanding reporting requirements can result in penalties.

What to look for:

  • Tax return automation that generates accurate filings based on your data
  • Direct submission to tax authorities for faster, seamless compliance
  • Consolidated reports that make audits straightforward

With Taxually’s tax automation platform, returns are automatically calculated, prepared, and submitted. That means less manual work for your team and greater confidence in your compliance.

3. Real-time updates and automated tax compliance

Tax rules change frequently—sometimes with little notice. Missing even a small update can cause compliance gaps. That’s why your solution should continuously monitor and apply regulatory changes automatically.

What to look for:

  • Automated updates to reflect the latest tax rules and rates
  • Adjustments that flow directly into your filings and reports
  • Notifications about changes that may impact your business

Taxually ensures automated tax compliance by updating its platform in real time. You’ll always be working with the most accurate, up-to-date information.

4. Sales tax automation and VAT automation

Different tax types come with unique challenges. For example, sales tax rules in the U.S. vary not just by state but sometimes by city or county, while VAT in Europe comes with specific filing requirements and thresholds.

What to look for:

  • Dedicated tools for sales tax automation, with support for nexus tracking and multi-state filings
  • Robust VAT automation to handle country-specific obligations across Europe and beyond
  • Unified dashboards that bring all of your indirect tax obligations together

Taxually provides purpose-built tools for both sales tax and VAT, so you can manage everything from one platform instead of juggling separate systems.

Taxually LumaTax interface showing filed sales tax by U.S. states and Canadian provinces with amounts, dates, and statuses.

5. Integration and flexibility

As your business grows, you’ll likely add new sales channels, expand into marketplaces, or upgrade accounting and ERP systems. Your tax solution needs to keep up.

What to look for:

  • Plug-and-play integrations with popular e-commerce platforms and marketplaces
  • Compatibility with ERP and accounting systems
  • Flexibility to adapt to your workflows rather than forcing you to adapt to the software

Taxually integrates seamlessly with leading platforms, making it easy to connect your data and ensure smooth enterprise and e-commerce tax compliance automation across every channel. 

6. User-friendly dashboards and insights

Tax doesn’t have to be complicated. Your compliance software should make things clear, not confusing.

What to look for:

  • Intuitive dashboards that track compliance status across regions
  • Automated reporting with easy-to-digest insights
  • Minimal need for specialist tax knowledge to get started

Taxually’s user-friendly interface makes managing compliance straightforward, giving you clarity and confidence at a glance.

Taxually CrossTax interface showing VAT amounts for Spain and Germany with transactions, euro values, and approval buttons.

7. Expert support to complement tax automation

Even with the best tax automation software, there will be times when human expertise is needed. Complex transactions, cross-border sales, or expansion into new jurisdictions may raise questions.

What to look for:

  • Access to tax professionals who can provide advice when needed
  • Ongoing support to help you implement changes and avoid pitfalls
  • A partner who understands the tax challenges of your industry

Taxually offers more than just automation—it combines smart technology with access to tax experts who can guide you through complex compliance challenges.

Summary

Choosing the right tax automation software is about more than just convenience—it’s about protecting your business from compliance risks, freeing up valuable time, and enabling sustainable growth. The best solution will combine:

  • Global coverage for VAT and sales tax
  • Tax return automation for accuracy and efficiency
  • Sales tax automation and VAT automation in one platform
  • Automated tax compliance that updates in real time
  • Flexibility, scalability, and human support

Ready to see how Taxually can simplify tax compliance for your business? Book a free demo today.

Author
Jenny Longmuir
Copywriter
Jenny Longmuir is a content writer with experience in tax and fintech. At Taxually, she covers topics such as global tax compliance, digital reporting, and automation, helping businesses stay informed about the evolving regulatory landscape. Her work focuses on making complex financial and compliance information clear and accessible to a broad audience.
FAQ

Frequently asked questions

Are there any days you’ll be closed for the holidays in 2024?

What is automated tax compliance software?

Automated tax compliance software helps businesses manage VAT, sales tax, and other obligations by automating filings, applying regulatory updates in real time, and reducing manual errors.

Why should I choose software with global coverage?

If you sell internationally, you need a solution that supports compliance in multiple jurisdictions. This ensures you remain compliant with varying rates, filing formats, and deadlines.

What’s the difference between VAT automation and sales tax automation?

VAT automation handles country-specific reporting and thresholds, while sales tax automation manages U.S. state and local obligations, including nexus tracking and multi-state filings.

Can tax automation software integrate with my existing systems?

Yes—leading platforms like Taxually integrate with e-commerce stores, marketplaces, ERP, and accounting systems to simplify compliance without disrupting workflows.

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