Taxjar Marketplace Facilitator

paper-and-calculator

Sales tax can be a pain to deal with.

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. You may be surprised to learn that there is an easier way around 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!

taxjar-logo

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 Marketplace Facilitator

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.

Although it may seem simple from a superficial level, the process is actually quite complex. 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. Business owners were forced to learn and remember tax codes after tax codes, adding more complexity.

That’s quite a task. Well, TaxJar takes most of the complications in sales tax compliances and turns them into simple, less daunting tasks. This allows you to prioritize the most important aspects of your business without having to worry about tax computations.

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 Marketplace Facilitator

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.
  • The AutoFile tool will take care of all the details for you.
  • TaxJar allows you to save time and allow you to concentrate on your business.
  • It is easy to use, and you don’t have to be an accountant or tax expert to understand it!
  • 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!

calculator-and-laptop

> > Click Here to Check Out TaxJar < <

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 plans: Starter, Professional, and Premium. 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 provides free tools that will help you greatly with sales tax compliance such as sales tax reporting, AI driven product taxability recommendations and basic CSV 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

If your business has more experience and expanded reach, more challenges may likely come ahead. 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. If you use TaxJar Professional and manage to rake up to over 1,000 orders, you’re entitled to phone customer support on top of 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. Premium includes all the Starter and Professional features for enterprises and experienced businesses, as well as unlimited API and data integrations to many e-commerce services and unlimited AutoFiles. There is also unlimited team usage.

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.

Free Trial

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! Taxjar Marketplace Facilitator

Taxjar Marketplace Facilitator

> > Click Here to Check Out TaxJar < <

The Features of TaxJar

Automated 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. TaxJar instantly calculates sales tax! 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. Its team keeps track of all updates related to sales tax laws and rates and incorporates them into the platform periodically.

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 of this data is automatically combined into reports for different states with breakdowns according to their tax jurisdictions.

Organizing reports is simpler and more accessible with TaxJar – everything is centralized, making way for quick collaborations with your finance team. The dashboard allows you to see detailed analysis based upon your activity. You’re also always up-to-date, as TaxJar collects data automatically all the time.

AutoFile

AutoFile makes this platform stand out among 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.

AutoFile’s greatest asset is the fact that you are guaranteed to not miss a deadline. There’s no need to even go through the stress of paperwork or extra hands, as it’s designed to be easily manageable. It saves time and money in the long-term.

It’s amazing, but it can also be a luxury for lower-tier subscribers. For starter plan subscribers, you can only get 4 AutoFile enrollments free of charge 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 Marketplace Facilitator

Determining the nexus can be confusing. TaxJar offers easy-to-understand insights that will help you stay on track. The economic nexus dashboard not only allows you to check the activity between states, but also shows you if you have reached the required threshold for each state. This is especially useful if you have a growing business that wants to expand into more states.

laptop-in-coffee-shop

> > Click Here to Check Out TaxJar < <

Integrations with Online Business Services

TaxJar can be seamlessly integrated 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. You can also import data from third-party service providers through CSV if you don’t see your online business solution.

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.

While it’s highly acclaimed – and rightly so – we can’t fully say it’s perfect in all aspects. Some users had issues with customization while others experienced problems with TaxJar’s integration to Shopify and other apps. 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.

Most Frequently Asked Questions Taxjar Marketplace Facilitator

woman-using-laptop

> > Click Here to Check Out TaxJar < <

What 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 have not yet been extended to other countries outside US jurisdiction. Only the TaxJar API tool is supported in a few non-US territories. 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. Once you head over to Plans & Billings, you can click the red link that leads you to cancel your current subscription.

You will lose access to TaxJar’s reporting tools and AutoFile. If you wish to regain access to those services, you can reactivate your account and subscription anytime.

What other alternatives are there 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. The following are alternatives to TaxJar.

  • Avalara
  • Sovos Taxify
  • Vertex
  • TaxCloud

> > Click Here to Check Out TaxJar < <

error: Content is protected !!
Scroll to Top