TaxJar automates tax calculation and provides reporting and filing functions. It takes minutes to set up. For more information go to taxjar.com
The TaxJar solution consists of two elements:
- Creating a TaxJar account.
- Using the TaxJar plugin.
Sales Tax collection is based upon a connection between your business and a tax jurisdiction. This connection is a Nexus.
From a tax perspective, if your business has a presence in one or a number of States, the Tax Authority may be allowed by law, to enforce you to collect or pay Tax.
For more detail refer to Sales Tax Nexus Defined.
- Using this link, sign up for a TaxJar Account at taxjar.com and Login.
- Familiarize yourself with the TaxJar’s features by reading the Documentation i.e. Getting started.
- Retrieve the API key (SmartCalc API).
- Add the list of states where you have Nexus (State Nexus Settings).
- Go to Salesorder app, SETUP > Plugins > Plugin Store >TaxJar Auto-Tax Calculator. Click ‘Register‘ then ‘Confirm Registration‘. Click ‘Install now‘.
- Go to the Plugin Configuration Page > Edit > Enter API Key
- Uncheck Live mode. Keep this unchecked until you’re happy. TaxJar is functioning correctly.
- Next step is to create a new Tax code in the system. To create a Tax Code, go to: ACCOUNTING > Tax > Tax Code > + Add new tax code ‘TaxJar’ and set the ‘Tax Rate’ as 0.
- Preset Customers profiles with TaxJar as the default Tax Code/Group. This can be achieved in two ways –
- By Manually setting Tax Code/Group for the Customers.
- Updating entire Customer list via Import module.
To preset Tax on Customers manually, go to:
SALES > Customers > Select a Customer > View Customer Screen > Edit > Profile tab > go to Trading Information section > Set ‘Tax Code/Group.
To preset Tax on entire Customer List, use the Customer Template in the Import module.
To update Tax Code on your entire Customer List, go to:
SETUP > Import Data > Download template to Import Customers.Enter details in the template and then Upload Data.
- Do a test on a Document with a Shipping Address to a State in which you have Nexus. When you save the Document, click the ‘Add Tax Button‘ to review the tax that will be applied to the irrespective State.
- When you’re ready to go Live, go back to Step 7 (above) and set the ‘Live Mode’ to checked.
- Test again.