Calculating and submitting sales tax is a process that anyone would prefer to avoid, and following many TaxJar reviews, this tool allows you to do just that. With customizable sales tax management tools, pricing options, and automatic filing, this is a great tool for both small businesses and larger companies.
TaxJar is ideal for you if you need help with your taxes. It's a one-stop solution for handling all your sales data from various platforms. Also, if you want to cut down on the time you spend filing your sales tax returns, this service is worth your time.
Fortunately, we are living in a digital age, and there are several services available online to assist you, but choosing the right one for your online store can be overwhelming. To help simplify the process, our TaxJar review explores one of the most popular tools for tax services.
TaxJar Review - What It Does
When you first sign in to TaxJar, you have the option of connecting to any platform you want. You can import data using a CSV file format if you are not connected to a specific selling website or accounting application.
TaxJar navigation is simple, even for inexperienced users, with all system capabilities accessible via the menu just at top of the screen. The filing history function makes it simple for users to access returns that have already been filed for all states, and users have access to all current system transactions.
Important information including year-to-date sales totals, taxed sales, gross sales, and total sales taxes received are also included on the dashboard.
During the setup procedure, you must input any states where tax is presently collected or where tax will be collected in the future. The program displays the selected statuses.
To help make sure that all sales taxes collected are accurate, TaxJar features address validation. Additionally, it can manage client exemption certificates, which include the ability to upload and keep all certificates in your TaxJar account.
Keep in mind that this feature is only accessible to clients who integrate with NetSuite, WooCommerce, or the TaxJar API.
TaxJar generates reports that show overall tax summaries, with totals available for every state where taxes were collected. After a report has therefore been processed, you can choose to file a return either manually or through the state's website.
You can also choose to use the AutoFile option, although, at the moment, AutoFile does not accept tax exemption certificates, thus it's not advised for companies that receive a lot of sales tax exemptions.
Next in our TaxJar review, let’s look at the cost of using this tool.
TaxJar Pricing
Remember that there's a 30-day free trial, which doesn't require your credit card information before signing up for the service!
Surprisingly, the pricing for the software created to make your company's financial tasks simpler isn't totally clear. This app offers three programs, two of which include a monthly fee for processing up to 200 purchases per month.
Since the tax refund needs to be calculated and recorded, an order could be both a purchase and a return (so when a customer returns an item, that's two orders).
Take note that these plans have no actual limit of 200 orders per month. Simply put, when you expand, your pricing will change.
| Plan | No. of orders | Fees |
|---|---|---|
| Starter | 200 orders a month | $19 a month |
| Professional | 2.5k orders a month | $99 a month |
Additionally, each plan includes several free AutoFiles (automatic tax filing), but you can only get these if you pay for an entire year in advance. If you use TaxJar every month, you will pay a fee every time you file.
- Starter, $19/month
Up to 200 orders a month, up to three e-commerce integrations (data imports only from websites that handle all tax computations), basic CSV data imports, four free AutoFiles, tax reporting based on jurisdiction, support for multiple seller platforms, as well as email support.
- Professional, $99/month
Maximum of 200 orders a month, all of the features in the starter plan, plus 10 users, API access, including 10 integrations (both imported data and API), phone support, advanced CSV imports, 12 free AutoFiles, economic nexus dashboard, account management (at 1k orders per month), and 10k increased API calls/minute.
- Premium, $Custom/month
All of the aforementioned features for a specific number of orders, plus unlimited consumers, unlimited integrations, improved API call rates of 25k per minute, an infinite number of AutoFiles, and white glove account team assistance.
Finally, it's important to note that you can purchase additional Auto files irrespective of your plan. AutoFile is accessible for all US states, but there is an additional price to use since it's not included in TaxJar's monthly plan.
This is because companies only use AutoFile whenever it's time to file their tax return, which can happen at various points during the year. When the service is required, there is a $25 AutoFile cost.
To sign up for AutoFile, go to your TaxJar dashboard and click the button next to your state's name. This is only accessible when the state's submission window opens.
Integrating And Selling Across Several Channels
If you sell through several channels, TaxJar is an excellent solution for keeping things organized and simple.
TaxJar helps gather sales information from numerous channels and presents critical indicators on a single dashboard that is easily accessible. Thus, the days of laboriously crunching numbers and transferring sales data to one platform are long gone.
Instead, you just need to interface your sales platforms with TaxJar, and it'll manage the data for your business sales tax returns.
TaxJar has excellent connector capabilities that allow it to link to a variety of third-party accounting and eCommerce platforms, including PayPal, Stripe, QuickBooks, Xero, NetSuite, and Square. If necessary, you can choose to integrate it into multiple selling platforms.
Platforms that TaxJar integrates with for online shopping include:
- Etsy;
- Shopify;
- eBay;
- BigCommerce;
- WooCommerce;
- Magento.
TaxJar Features
- Accurate and detailed Sales Tax Reports: TaxJar's local jurisdiction taxation reports indicate sales tax collected both for each state, and each local jurisdiction (cities, counties, etc.). Additionally, you have the option to sort the information by any date period.
- Real-Time Collection Data: The app's dashboard displays the total amount of sales tax collected in each state as well as the due date for the subsequent payment. Every day, all of the data is updated automatically.
- Estimated Sales Tax Reports: You can get a clear comparison of the sum collected versus the amount you should have collected.
- Integration to Multiple Platforms: Links to sites like PayPal, eBay, Amazon, WooCommerce, and more.
- Simple pricing: There are no startup costs, contracts, or upfront expenses. Everybody pays a straightforward monthly cost that fluctuates based on the number of transactions.
- One-Click Automated Filing: TaxJar submits sales tax returns to the states automatically. obtainable in practically all states in the U. S.
- Features for general ledger and customizable accounting: It offers a fully computerized interface for repeated tax filing. It also includes financial management tools.
- Customization options: An API is available for customized integration anywhere you want. If your chosen platform is not available, a custom API can come in handy.
TaxJar Review – Pros and Cons
Pros
- With TaxJar's AutoFile service, you can be sure that your state and federal tax returns are always filed on time.
- Keeps you compliant with more than 11,000 tax jurisdictions.
- All US states have access to AutoFile.
- TaxJar offers a straightforward dashboard that clarifies your sales tax and computes your returns for you.
- Outstanding client service.
- A free trial of 30 days is offered.
- TaxJar's website includes a variety of instructional materials to assist you in better understanding their services (including sales tax in general).
- You may gather all sales tax information in one location with the help of multi-channel integrations.
Cons
- AutoFilling is offered as a pay-per-filing service, which can soon add up to a significant additional expense.
- Because it is still in development, the software sometimes misinterprets local laws.
- Only allows US consumers to file their sales tax.
- The existing price structures lack some transparency, and clients with more complex requirements must contact us.
Which Countries Does TaxJar Support?
Although TaxJar only offers AutoFile services for the United States, it nonetheless offers all the necessary data for the following nations and assists you in managing and calculating your sales tax.
Other countries that can use this tool include the Czech Republic, Estonia, Denmark, Finland, Greece, France, Germany, Hungary, Italy, Ireland, Lithuania, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Poland, Romania, Spain, Slovakia, Slovenia, Sweden, and the United Kingdom.
TaxJar Review: What Can TaxJar Do for You?
To sum up our TaxJar review, this tool delivers you a great solution when you need to prepare sales tax returns across many states for tax compliance, via a variety of sales channels (marketplace settings), and wish to automate this process.
If that describes you, using this service could help you save time and stay on top of all your due dates and requirements. It's also extremely helpful if you're selling in a state with infamously intricate tax laws, such as Texas, South Carolina, or Washington.
Last Words
However, if you just need to submit business taxes in a state with straightforward requirements, you may discover that after going through the procedure multiple times, you can do it relatively fast on your own.
In this situation, once you understand how to file your sales tax, TaxJar might not be an essential tool for you. Additionally, this holds if you only use one sales channel that allows for simple management of your sales.
