TaxJar

Updated 3 weeks ago

Please read first! For information on TaxJar is Sellercloud's original interface, download this file.

Prerequisite: Using the TaxJar feature requires the Windows TaxJarService. Sellercloud Support can check that this service is running on your server.


Sellercloud is integrated with TaxJar, a company specializing in sales tax reporting and filing for online retailers. This API integration provides two major benefits:

  • Accurate, hassle-free tax filing - Orders from all your sales channels will be uploaded automatically to TaxJar for accurate filing with state tax agencies nationwide.

TaxJar collects the amount paid for, the line items of the order, and then breaks these items down per line item. It does not factor in orders that are tax exempt.

It is still advisable to configure a tax rate on the Taxes page. This lets you see the tax amount at the time you are creating a local order.

Understanding TaxJar settings

These settings will automate the process of sending or receiving info from TaxJar.


Setting

Description

Submit Transactions via API

This will send transactions to TaxJar. Enabled near each channel must be selected from the grid below as well.

Do not select Update Order Tax near each channel in the grid.

Submit Refund to TaxJar

When checked, Sellercloud will send the refunds for order that were initially sent to TaxJar by Sellercloud.

Request Tax Calculation

This requests a Tax Calculation from TaxJar and updates the API Tax column on orders in Sellercloud. This is not commonly used.

Update Order Tax (per channel)

This will override the current tax amount on the order with the tax amount from TaxJar. This works with Request Tax Calculation.

This setting should never be used with marketplace channels, it can only be used with website, wholesale or local store order channels.


Configuring TaxJar

  1. Select Enable Tax API Per Channel PerState in the Client Settings.
  2. Click Company > Toolbox > Taxes > Taxes API.
  3. Enter the TaxJar API Token.
  4. Enable each relevant channel.
  5. For each individual channel, select the relevant states for which you are collecting taxes. This is required since there may be different tax collection rules for different channels.

Sending Orders and Refunds to TaxJar

  1. Select the Submit Transactions via API box to send the order data to TaxJar from Sellercloud.
  2. Select the Submit Refund to TaxJar to send refunds back to TaxJar on orders originally sent from Sellercloud to TaxJar.
Orders are uploaded in scheduled intervals based on when your server's TaxJarService runs. If you need to send orders that are older that 7 days that were not sent by Sellercloud yet use action Post to TaxJar from the manage orders page.

Updating Order Tax Amounts from TaxJar

This is not supposed to be used for marketplace orders and is better suited for one off wholesale, or local store orders to retrieve the tax rate.
  1. Select the Request Tax Calculation box to request tax data from TaxJar from Sellercloud. If you do not select this setting you can still request the tax calculation from an individual order using order level action Get Tax From TaxJar.
  2. Per channel you can select Update Order Tax This will override the current tax amount on the order with the tax amount from TaxJar. This is not suitable for most channels.
The following may be redundant to TaxJars` services

Tax changes are saved to the Tax API Mismatch page, where you can either update the order's tax or dismiss the tax change:

  1. Click Orders >  Order Reports > API Tax Mismatch. The grid lists the orders with the tax changes:
https://sites.google.com/site/sellercloudhelp/order-management/taxjar/TaxMismatch.PNG
  1. Select the order > Action Menu > choose either Update Tax on Order or Dismiss Selected. The order will disappear from the grid and the following occurs:
    1. A note is created in an updated order
    2. Profit and Loss will update immediately on the order's P&L tab
    3. Reports will update after the P&L service runs (daily - approx. 2AM EST)

Regardless of whether you update the order with the tax amount from TaxJar, the tax amount will appear in a separate API Tax column on the Tax Collected by Transaction report in the grid and the Excel download (as shown below).

Note: The Client Setting Enable Tax API Per Channel PerState must be selected for this column to appear!

Tax Exemptions and Tax Codes

There are 2 types of exemptions Customer and Product Customer Exemptions.

Customer tax codes and exemptions
  1. Sellercloud support needs to turn on app setting EnableCreateTaxJarCustomer.
  2. Set your Sellercloud customer to tax exempt and choose the exemption type from the Customer details page.
Before sending order to TaxJar, Sellercloud will create a customer customer if customer does not exist yet.
Product Tax Codes and Exemptions
  1. There is a Tax Exempt check box on each item.
  2. You can also enter a Tax Code whether the item is exempt or not.
The Item Tax code and/or Exemption will be sent to TaxJar.


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