2018 Review of TaxJar

Designed specifically for those that sell on an e-commerce platform, TaxJar can also be used by accountants to manage sales and use tax returns and filings for their clients. TaxJar integrates with a variety of e-commerce platforms including Amazon, Ebay, PayPal, and Magento, along with several others. The product also includes SmartCalcs API that can calculate sales tax for any U.S. location, along with several international locations including Canada, Australia, and the European Union.

Immediately upon signing up for TaxJar, users will be asked which e-Commerce account they would like to link to, with options such as Amazon, Magento, PayPay, Etsy, Shopify and others available. Users can also import sales data via a CSV file, or by using the SmartCalcs API. Users can link to more than one account and can link to as many accounts as necessary.

Once data import is complete, users will have access to their dashboard, which provides a year-to-date summary of gross sales, taxed sales, and sales tax collected.

TaxJar also displays the states where sales tax is currently being collected. This can be the state that the business is located in or states where you have already been collecting taxes.

Each state where tax is collected has its own state tax report. TaxJar will calculate the amount of sales tax currently being collected against the amount of tax that should be collected, displaying whether tax has been over or under collected.

TaxJar creates a return ready sales tax report which can be used when filing tax returns in the appropriate state. Users have the option to file tax returns manually or enroll in TaxJar’s AutoFile Service for automatic tax return filing, with the product now able to file sales tax returns in every U.S. state. The AutoFile service is not recommended for those that currently process a high number of exempt transactions, as with the exception of Amazon.com sellers, TaxJar cannot property track exempt product properly, likely resulting in a tax overpayment.

SmartCalcs is an optional module that users can purchase that handles both origin based and destination-based tax sourcing rules, eliminating the need to handle rules and calculations manually. The product also handles multi-state Nexus, as well as international support for the European Union or Canada. SmartCalcs also supports calculations for VAT as well.

TaxJar supports exemptions for Amazon sellers and those that utilize SmartCalcs, with users able to categorize specific products as exempt. The product currently supports the most common exemptions and are always adding more exemptions. Those linked with other shopping cart programs will not be able to use the exempt option, though TaxJar does expect to add the option in the future.

TaxJar handles use tax reporting, with the destination report including a breakdown by county, city, and jurisdiction to simplify the filing process.

TaxJar offers integration with a variety of popular e-commerce platforms including Amazon, BigCommerce, eBay, Ecwid, Etsy, Magento, PayPal, Shopify, Stripe Relay, Square, Walmart, WooCommerce, and Xero.

TaxJar offers users an excellent selection of help and resources, including a brief demo video that can be accessed from the home page. Users can also access the numerous articles that are available on the product support page, or type in a search term to view various resources available. A manual sales tax calculator is available on the TaxJar homepage, and users can also browse the FAQ’s that are available.

TaxJar offers a free 30-day demo of the product, where users can try out and later purchase if desired. Product support is available via email, with users filing out the brief contact form to request support.

TaxJar is a good solution for those selling on an e-commerce platform. The product is also a good solution for accountants managing sales tax for their clients, with TaxJar providing accountants with a free plan, which includes single login management of all accountants.

TaxJar Basic starts at $17.00 monthly, with TaxJar Plus pricing available upon request. Both AutoFile and SmartCalcs are priced separately, with pricing levels varying, depending on user needs.

2018 Overall Rating – 4.5 Stars