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Best Tobacco Excise Tax Software

Tobacco manufacturers, distributors, and wholesalers are required to file and pay tobacco excise taxes to all jurisdictions that they have sold tobacco products to during the filing period. Filing period can be monthly or quarterly depending on the shipments volume and taxing jurisdictions rules. Taxing jurisdictions include state, county, city, or other local taxing governments.

What is Tobacco Excise Tax

A tobacco excise tax is an indirect tax charged by the state or other local governments on the sale of tobacco products. Shippers are required to remit excise taxes on all shipments to retailers or other wholesale distributors.

Why Use Tobacco Excise Tax Software

States have different tobacco tax rules, rates, and filing requirements. Tobacco distributors with tobacco permits from more than 10 states spend endless hours figuring out tax rules changes and new filing requirements to stay in compliance with all taxing jurisdictions. Another issue facing tobacco distribution businesses is learning tobacco taxation rules across multiple states takes years of experience, so what will happen when the main tax administrator leaves or retires.

Migrating from one invoicing system to new modern ERP, now in house tax preparation software become absolute and hence tax team struggles to work with the new database.

Crunching numbers with excel sheets is a recipe for errors and hence state audits and penalties.

More states are modernizing their tax systems so no more manually prepared paper filing will be accepted.

Between IT department and tax team, distributors find it very challenging to develop in-house software solution for tax preparation, filing, and payments. Companies find it hard to expand their business to other states simply because of lack of knowledge of the tobacco tax rules and filing requirements.

Best Tobacco Excise Tax Software

1. Avior Data sales@aviordata.com (972) 550-9313

Avior Data provides tobacco tax platform, the automated SaaS solution works with most invoicing system and allows distributors to report easily from their current invoicing system to tax jurisdictions with no changes required to invoicing system. Avior Takes the database as is, curate the data and submit accurate tax returns and reports automatically.

2. Custom Software

Large companies with IT resources develop in house application to generate tax returns and submit it to the tax jurisdictions. This requires continuous maintenance as tax rules and rates change over time.


Using third party tobacco tax software and services is the best choice for tobacco manufacturers, distributors, and wholesalers. Certified tobacco tax software providers take this problem from the hands of tobacco resellers so they can focus on what they do best which is growing their tobacco distribution business.