Taxjar Magento Only Collect In Certain States

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Sales tax can be a pain to deal with.

Sales tax compliance is one the most complicated business processes. There are a lot of paperwork and calculations involved. But you may be surprised to find there’s an easier way out of it. TaxJar is a cloud-based, state-of the-art automated sales tax platform.

With TaxJar, all the challenges in sales tax are simplified, giving you and your business the upper hand. In this review, we’ll take you through all the things you need to know about 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!

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For those of you who prefer a more visual experience, here is a video review from Marcus Stonelius’ YouTube channel. To get a comprehensive overview of TaxJar, you may still want to check out our article below.

What Does TaxJar Do? Taxjar Magento Only Collect In Certain States

TaxJar was established in 2013 to serve online sellers and business entities. Its goal is to simplify the complex process of sales tax compliance. There are over 11,000 tax jurisdictions in the United States. Each one has its own rules and regulations. Back then, businesses had to comply with sales tax regulations and rates according to where their transactions were held, where their inventory stocks were located, and how many employees they had hired.

This process may appear simple on a surface level, but in reality, it’s quite complicated. Businesses were tasked with handling varying degrees of tax burdens, and these may vary based on varying factors. The US Supreme Court in 2018 ruled that all businesses have to pay sales tax regardless of where the product was purchased. This resulted in more burdens for business owners, having to learn and memorize tax codes upon tax codes on top of everything else.

It’s a lot to take, right? Well, TaxJar takes most of the complications in sales tax compliances and turns them into simple, less daunting tasks. 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. Taxjar Magento Only Collect In Certain States

Pros

  • TaxJar has been designed to be simple, quick, and automated. It will keep you in compliance for more than 11,000 tax jurisdictions across 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!
  • TaxJar is not only less complicated than other software, but it also offers amazing customer support and a wealth of resources that will help you comply with sales tax.

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Cons

  • Although TaxJar is known to be generally convenient, it may be a bit complicated on the first try, especially for the uninitiated merchant.
  • Sometimes, the interface can be frustrating. Some users report having to open more than five tabs just to file a tax return for one state.
  • Pricing for lower-tier plans may vary depending on factors like additional AutoFile fees if credits are exhausted. We’ll be discussing pricing soon.

How Much Does TaxJar Cost?

TaxJar offers three pricing plans: Starter, Professional, and Premium. Let’s dive deep into these subscription tiers.

Starter

Starting at $19/month, the Starter plan provides essential sales tax services for 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. Starter also allows for support for multiple business accounts and e-mail support.

Professional

More challenges are likely to come if your company has more experience and a wider reach. The Professional plan is for you. 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. If you receive more than 200 orders, the price for this tier could change.

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. It is fully customizable to meet your business’s needs and can be negotiated through TaxJar’s customer support.

Free Trial

If you’re interested in TaxJar, you may want to check out its free 30-day trial. You can get full access to all the Professional plan features and tools, including API access and integrations, data imports, and team and user management. This trial is free and you don’t have to pay anything upfront! Taxjar Magento Only Collect In Certain States

Taxjar Magento Only Collect In Certain States

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TaxJar’s Features

Automatic Sales Tax Calculations

TaxJar offers fully optimized functions and services that are designed to reduce the tax burden. Its calculation process is one of them. Calculating sales tax with TaxJar will give you instantly accurate results! Not only does it always ensure you the right rates in correspondence with your customer’s address and tax jurisdiction, but it also gives you the amounts in real-time.

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 doesn’t just provide you with top-notch calculations, but also automated reports on all the sales tax data collected by the platform from linked accounts, CSV imports, and even individual state sales tax reports. All of this data is automatically combined into reports for different states with breakdowns according to their tax jurisdictions.

TaxJar makes it easier and more accessible to organize reports. Everything is centralized, which allows for faster collaborations with your finance department. The dashboard allows you to see detailed analysis based upon your activity. TaxJar automatically collects data so you’re always up to date.

AutoFile

AutoFile is what makes the platform stand out from the rest. It’s an electronic sales tax filing tool that gathers user information from e-commerce providers and files them into an automated sales tax return report and payment to be submitted to 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. It saves time and money in the long-term.

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. Taxjar Magento Only Collect In Certain States

Determining the nexus can be confusing. 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. It comes in very handy, especially if your business continues to grow and reach more states.

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Integrations with Online Business Services

TaxJar can seamlessly integrate with many online business services. You can connect your account to internet marketplaces like Amazon, Etsy, and eBay to determine sales tax. Integrations can be made with e-commerce platforms such as Shopify, BigCommerce and other similar services that allow you to sell your listings, use payment gateways such as Stripe or PayPal, and operate management systems like Oracle NetSuite, Intuit QuickBooks and many more.

Square, WooCommerce, Walmart, Salesforce and Magento are just a few of the other services that can be integrated with TaxJar. 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 is a popular choice because it is easy to use, it saves time, and it can help your business in many other ways.

It’s highly recommended, and we are right to be so. However, it isn’t perfect in every aspect. Some users reported having problems with customization, while others found issues with TaxJar’s integration with some apps like Shopify. There have also been problems with automated calculation as well as interface misunderstandings. These issues could be addressed.

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 Taxjar Magento Only Collect In Certain States

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Which types of businesses use TaxJar?

TaxJar can be used by small and medium businesses, large-scale enterprises, and even freelancers. TaxJar served more than 20,000 businesses as of 2022. This includes some well-known companies like Coca-Cola and Land Rover, Microsoft, Shein and many other.

Does TaxJar work in other countries outside the U.S?

TaxJar features are currently limited to the United States. They are not yet available in other countries. The TaxJar API tool only is available in certain territories outside the United States. TaxJar API is available to businesses in Canada, Australia and the UK.

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.

TaxJar’s reporting tools, as well as AutoFile, will be removed from your account. 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 sales tax compliance solution available. 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

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