It can be difficult to manage sales tax.
With stacks of paperwork, hefty amounts of calculations, and lots of challenging obstacles, it’s no wonder why sales tax compliance is one of the most difficult business processes. But you may be surprised to find there’s an easier way out of it. Introducing TaxJar, the cloud-based state-of-the-art automatic sales tax platform.
With TaxJar, all the challenges in sales tax are simplified, giving you and your business the upper hand. This review will cover all aspects of this service. We will also discuss the pros and cons of TaxJar and give our final verdict on whether TaxJar is worth it for your business management system. Let’s go!
For those of you who prefer a more visual experience, here is a video review from Marcus Stonelius’ YouTube channel. Do check out our article below, however, because it has a comprehensive overview of TaxJar.
What Does TaxJar Do? Promotional Coupon Taxjar
Since its inception in 2013, TaxJar serves business enterprises and online sellers, intending to ease the already complicated process of sales tax compliance. There are over 11,000 tax jurisdictions in the United States. Each one has its own rules and regulations. Businesses had to adhere to sales tax regulations back then. Rates were determined by where transactions were made, inventory stock locations, and the number of employees they employed.
This process may appear simple on a surface level, but in reality, it’s quite complicated. Companies were given different tax burdens to handle, which can vary depending on various factors. Things got even more complicated when in 2018, the US Supreme Court ruled that businesses must pay sales tax based on where the consumer purchased any product. This resulted in more burdens for business owners, having to learn and memorize tax codes upon tax codes on top of everything else.
That’s quite a task. TaxJar simplifies the complex tasks of sales tax compliance and makes them simpler. That way, you can prioritize what matters the most with your business, without the added hassles of hefty tax computation.
What are its Pros and Cons
To help you weigh in on your decision, we’ve provided you with a list of pros and cons of using TaxJar as a business tool. Promotional Coupon Taxjar
Pros
- TaxJar is designed with streamlined, simple, and quick automated features to keep you in compliance with more than 11,000 tax jurisdictions in the U.S.
- With the AutoFile tool, you won’t need to worry much longer about due dates and late submissions of tax returns, etc., as TaxJar takes care of the rest for you – more on that later!
- TaxJar allows you to save time and allow you to concentrate on your business.
- It’s easy to use – you don’t need to be a full-on tax or accounting expert to understand how it works!
- Aside from its less tedious nature, TaxJar also provides businesses with amazing customer support and plenty of helpful resources to guide you through when it comes to sales tax compliance!
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Cons
- TaxJar is generally easy to use, but it can be complicated for merchants who are not familiar with the process.
- The interface can also sometimes be inconvenient, as some users have reported cases of having more than five browser tabs open just to file one state’s tax return.
- The pricing of lower-tier plans can vary based on factors such as additional AutoFile fees if you’ve used up the free credits allowed in a plan – more on that as we’ll discuss the pricing shortly.
What is the cost of TaxJar?
TaxJar offers three pricing options: Premium, Professional, or Starter. Let’s dive deep into these subscription tiers.
Starter
The Starter plan starts at $19/month and provides essential sales tax services to small businesses. It usually handles up to 200 total purchase and returns orders per month, but the price may change if the volume goes past the number. This tier offers free tools that can help you significantly with sales tax compliance like sales tax reporting, AI-driven product taxability recommendations, and basic CSV data imports.
Customers also get data integrations and up to four free AutoFiles per annum. In addition, Starter allows support for multiple business accounts, as well as e-mail support.
Professional
If your business has more experience and expanded reach, more challenges may likely come ahead. That’s where the Professional plan comes in. Starting at $99/month, you get all the features from the Starter tier, plus some upgrades like full API access, advanced CSV imports, and economic nexus features.
Professional includes an increased limit on data import and API integration, from 3 to 10,10,000 advanced API calls per hour, up to 10 team managers users, and 12 free AutoFiles per calendar year. TaxJar Professional users who manage to generate over 1,000 orders per year are eligible for phone customer service in addition to e-mail support. Like Starter, the price of this tier may change if you gain more than 200 allotted orders.
Premium
TaxJar Premium includes all the features that you need to ensure sales tax compliance. Apart from providing experienced businesses and enterprises with all the Starter and Professional features, Premium offers unlimited API and data integrations with many e-commerce and marketing services, unlimited AutoFiles, and an unlimited number of team users.
You also get 25,000 API calls per hour, and white-glove support through a dedicated account management group. Premium is not priced in a fixed range like the other plans. Instead, it’s fully customizable according to your business’s needs, and can be negotiable through TaxJar’s customer service.
Try it Free of Charge
If you’re interested in TaxJar, you may want to check out its free 30-day trial. All the features and tools of the Professional plan are available to you, including API access, integrations, data imports and team and user management. You don’t need to pay upfront to access this trial! Promotional Coupon Taxjar
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The Features of TaxJar
Automatic Sales Tax Calculations
TaxJar offers fully optimized functions and services that are designed to reduce the tax burden. One of those is its calculation process. Calculating sales tax with TaxJar will give you instantly accurate results! It will instantly calculate the sales tax for you, and it will always match the correct rates with the customer’s address.
TaxJar makes it easy to quickly calculate taxes and keep up with changes. The platform’s team tracks all changes related to sales tax rates and laws, and integrates them into the platform regularly.
TaxJar Report
TaxJar provides more than just top-notch calculations. It also offers automated reports that include sales tax data from linked accounts, CSV imports and individual state sales tax reports. All this is automatically compiled into reports for different states, complete with breakdowns from their tax jurisdictions.
Organizing reports is simpler and more accessible with TaxJar – everything is centralized, making way for quick collaborations with your finance team. Its reporting dashboard lets you see in-depth analysis based on your recent activity. You’re also always up-to-date, as TaxJar collects data automatically all the time.
AutoFile
AutoFile is what makes the platform stand out from the rest. It is an electronic sales tax filing platform that collects user information from ecommerce providers and then files it into an automated sales tax report and payment to be submitted in any state.
What’s great about AutoFile is that you’re guaranteed to never miss a deadline! AutoFile is designed to be easy to use and eliminates the stress of paperwork. Plus, it saves you time in the long run!
However, while it looks astoundingly impressive, it’s worth mentioning that it can be quite like a limited luxury to lower-tier subscribers. Starter plan users, for example, get only up to 4 free AutoFile enrollments per year.
Sales Tax Nexus Insights
If you use TaxJar in selling your items online, it’s important to know a thing about economic nexus. We’ve essentially covered this topic earlier, but to summarize, instead of paying sales tax within your home state, you will have to encounter paying sales tax to the states where your customers purchased your products, even if you’ve never been a resident there. Promotional Coupon Taxjar
It can be difficult to determine the nexus. Thankfully, you don’t have to jump through hoops, because TaxJar provides accessible insights to keep you on track. The economic nexus dashboard doesn’t just let you check activity between states but also lets you know if you’ve reached the required nexus threshold for each state. This is especially useful if you have a growing business that wants to expand into more states.
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Integrations with Online Business Services
TaxJar can be seamlessly integrated with many online business services. To determine sales tax, you can connect your account with online marketplaces such as Amazon, Etsy and eBay. You can also integrate with e-commerce platforms like Shopify, BigCommerce, and similar services where you may sell your listings, payment gateways like Stripe and PayPal, and operation management systems such as Oracle NetSuite, Intuit QuickBooks, and more.
Other partner services that are integrative with TaxJar include Square, Xero, Walmart, Salesforce, Magento, and WooCommerce among others. If you can’t find your preferred online business solution in the list, you can always build your own with the TaxJar API, or by importing all data from third-party services through CSV.
Is TaxJar the Perfect Fit for Your Business?
TaxJar has been a reliable and high-tech solution that addresses most of the issues business owners have in managing sales tax. It’s been a top pick for these reasons: 1) it’s easy to use, 2) it’s time-saving, and 3) it helps you and your business in many ways.
While it’s highly acclaimed – and rightly so – we can’t fully say it’s perfect in all aspects. Some users reported having problems with customization, while others found issues with TaxJar’s integration with some apps like Shopify. There were also issues with interface misunderstandings and automated calculation. It would be nice if those issues were to be improved.
All other issues aside, TaxJar would be the perfect fit for any business. This is a great tool to add to your business strategy.
Frequently Asked Questions Promotional Coupon Taxjar
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Which types of businesses use TaxJar?
Small and medium-sized businesses, large-scale companies, freelancers, and individuals can all use TaxJar. As of 2022, TaxJar has served over 20,000 businesses, including some of the well-known ones, like Coca-Cola, Land Rover, Microsoft, Shein, and many others.
Does TaxJar work in other countries outside the U.S?
As of recently most of TaxJar’s features are limited to the United States. They are not yet available in other countries. Only the TaxJar API tool is supported in a few non-US territories. Businesses in Canada, Australia, the UK, and countries included in European Union can use TaxJar API.
Can I cancel my TaxJar account? If so, how?
If you are unhappy with TaxJar’s service, you can cancel it by going to your account settings. You can cancel your subscription by clicking the red link once you have accessed Plans & Billings.
You will lose access to TaxJar’s reporting tools and AutoFile. You can reactivate or cancel your subscription at any time if you want to gain access to these services.
What are the alternatives to TaxJar?
TaxJar isn’t the only solution for sales tax compliance. There are other alternatives out there, with some offering more features and compatibility with more territories, and others with cheaper price ranges. We suggest you check out the following as alternatives to TaxJar:
- Avalara
- Sovos Taxify
- Vertex
- TaxCloud