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Tag : TaxJar

The Joys of Using TaxJar are numerous, a fact which every accountant can get behind.

The Joys of Using TaxJar Part 2

Establishing Nexus and Complying with State, Local, and County Tax Laws

In Part 1 we covered why you should want TaxJar, how the ZBrains CPQ tool integrates with TaxJar, and who TaxJar is for. Join us as we move towards a greater understanding of TaxJar:

When it comes to calculating your taxes and taking advantage of the joys of using TaxJar, tax nexus is vital. Determining nexus is an important element of tax compliance, and how you establish nexus can vary from state to state. Most definitions of nexus include the terms “doing business” or “engaged in business.” This blog details all the specifics regarding the various state laws.

The significant questions to ask yourself are:

  1. Do I have a location, warehouse, or other physical presence in a state?
  2. Do I have an employee, contractor, sales person, installer, or someone else working for me in a state?
  3. Do I have products stored in a state?
  4. Do my sales or number of transactions in a state exceed that state’s economic nexus threshold?
  5. Do I have a drop shipping relationship with a vendor in a state?
  6. Do I have an affiliate program with affiliates in various states?
  7. Do I cross state lines to sell my products at a trade show, craft fair, or other event?

Of note are the most common items that may not be taxable in some states:

-Grocery food

-Clothing

-Certain books (textbooks, religious books, etc.)

-Prescription and nonprescription medicine

-Supplements

-Magazines and subscriptions

-Digital products (books, music, movies, etc.)

Other Noteworthy Tax Nexus Issues

Once nexus is established it is crucial to do these three things:

-Register for a sales tax permit in that state

-Charge sales tax to customers in that state (regardless of how you sold them a product, or from where that product was shipped)

-File sales tax returns in that state

Perhaps the most obvious hurdle is the variability among state laws. For example, if you do not use TaxJar and have nexus in multiple states, you are forced to research the laws for each state on your own. This process can be tedious, especially when considering state, local, and county tax differences. Given all of this, the TaxJar automation of sales tax computation is truly an invaluable resource.

*Sometimes an identical product may be taxable in one state and non-taxable in another. A product may also not be taxable at the state level, but still taxable at the local level. *

Drop Ship, Ship Direct, and Multiple Warehouses with TaxJar

There are a few important scenarios to address when it comes to tax compliance. Drop shipping occurs when you use a vendor to ship an item directly to a customer. For example: you sell phone cases through your website and use a third party printing company to print designs on the cases before they are shipped to the customer.

Three things happen in this process: the customer buys the item from you, you buy the item from the vendor, and the vendor ships it to the customer. If your vendor has nexus in your state they must charge you sales tax on that purchase, unless you issue a resale certificate! The resale certificate indicates that the item you bought is for resale. This is where it can be complicated: you may be required to charge sales tax to your customer, and concurrently your vendor may need to charge sales tax to you.

Conversely, when shipping directly to the customer, you simply have to determine the sales tax in the buyer’s ship-to address.

Last but not least is the multiple warehouses scenario, which dictates that you must charge sales tax to buyers living in every state where your inventory is warehoused. A great example where this law may be overlooked is when sellers put their products Amazon FBA (Fulfillment by Amazon). It is easy to forget that you need to charge sales tax for buyers living in each state that your goods are warehoused through Amazon FBA.

API and Customer Service

One beauty of TaxJar is the SmartCalcs Sales Tax service, which is very easy to utilize using modern restful APIs. Once integrated, it can easily determine if, when, and how much sales tax to collect. Collect the right tax amount every time you sell a product! It also makes sales tax reporting and filing easier for you or your merchants. The SmartCalcs Sales Tax service is clearly one of the best joys of using TaxJar.

The New Kid on the Block: Economic Nexus

As of June 21, 2018, a new law went into effect: Economic Nexus. This nexus law requires that sellers collect sales tax in a state because:

-They make a certain dollar amount of sales in that state (most common threshold is $100,000 per year)

-Have a certain number of sales transactions in that state (most common is 200 per year)

Approximately half of the states with a sales tax have economic nexus laws, and more states have announced they will soon also pass economic nexus laws or regulations.

The Shortcomings of TaxJar

Although this blog explores the joys of using TaxJar, we would be remiss if we did not mention any of the problems. Despite all of the areas in which it excels, there are some caveats. Most notable is that it is not very flexible. The good news is that within Zoho Creator, you can perform your tax reporting without going to TaxJar. From drag and drop reporting and ad hoc reports to all the transactions in Creator, the bottom line is that it is easier to use than TaxJar. Simply use TaxJar to acquire accurate percentages, and then store that data back in Zoho Creator to generate your own reports.

Whether you are trying to determine tax nexus or simplify your tax compliance process, TaxJar can get you there. Explore this handy software for yourself and ensure you calculate your taxes with accuracy.

The Joys of Using TaxJar are felt by multiple departments and numerous employees

The Joys of Using TaxJar

The Joys of Using Tax Jar: Why You Should Want It

Maintaining sales tax compliance is not an aspect of running a company that business owners often get excited about. Fortunately TaxJar handles the mundane parts of the tax compliance process. TaxJar is a phenomenal way for business owners to spend less time on sales tax and more time growing the business they love. It is designed for those on an E-commerce platform, and is especially effective for businesses with nexus in multiple states. Join us as we explore and illuminate all the Joys of Using TaxJar!

Nexus, for those who are unaware, is a presence or connection in a state significant enough for you to be required to comply with sales tax law. It is precisely the differences among the 45 U.S. states (and D.C.) that make complying with sales tax laws such a hassle. The good news? TaxJar is not only easy to use, it is cost-effective, and using it as your tax compliance software affords you top notch customer service. The best way to enjoy all the aforementioned benefits is to integrate TaxJar with Zoho. That’s precisely where we come in. 

How ZBrains CPQ Combines with TaxJar

A great integration couples two parts of your business with ease, providing synergy that makes your job easier. Thus is the case with our Configure Price Quote (CPQ) and TaxJar. Generate sales quotes quickly and easily using our CPQ. The resulting process means you rely on just one system rather than an array of programs and personnel.

Here are the important facts about our CPQ:

-All your SKUs update automatically, no more looking through hundreds of defunct item codes

-All your item descriptions and pictures (if necessary) are up to date

-Your quotes come with a configurator: never search through line items that have nothing to do with the items you sell

Who is TaxJar For?

Although the design of TaxJar caters to eCommerce businesses, the software helps businesses everyday of all types and backgrounds. Versatility is undoubtedly one of the best joys of using TaxJar. It calculates tax for companies in any U.S. location as well as Canada, Australia, and the EU. Rest assured that if you have sales tax issue(s) to rectify, TaxJar can ensure your problems are a thing of the past. 

Use TaxJar to calculate sales tax for each state your business is in or where you have already been collecting taxes. It determines what taxes should be collected, and whether tax has been over or under collected. Discover those details by determining in which U.S. Sates you have nexus, a major topic in the second half of the Joys of Using TaxJar blog.

In addition to our TaxJar Integration for Zoho, we have numerous other Zoho Integrations to make your life easier.

This is part one of a two-part series.  Check here for Part 2 of The Joys of Using TaxJar.

Comparing and Contrasting TaxJar vs Avalara

TaxJar vs Avalara

TaxJar vs Avalara

Determining the best Tax Software for your business is a crucial step in the evolution of any company. A good sales tax compliance software is a cinch to implement, easy to use, and ultimately solves your problems so you can get back to running your business. To compare TaxJar vs Avalara, we evaluated each SaaS (software as a service) on: Ease of Use, Customer Support, Pricing, and Overall Customer Satisfaction. We hope this comparison article helps you make an informed decision about the best tax software for your business.

Ease of Use

Since the dawn of software solutions people have put a premium on usability. What good is a software if it takes months or even years to master the nuances? In terms of the customer/user experience, TaxJar is simply easier to use. TaxJar is built for multi-channel sellers, who can easily import data with a few clicks from Shopify and Amazon. By contrast, Avalara users are forced to download CSVs (comma separated values) and re-format them to meet AvaTax requirements. In the end, you don’t have to take our word for it when it comes to the functionality of each SaaS, you can look what customers are saying for yourself!

Pricing

When evaluating TaxJar vs Avalara on price we considered the offer of a TaxJar free trial, the contract differences, and the extra fees charged by Avalara. A good first impression goes a long way, which is why TaxJar provides potential customers with a 30-day free trial. According to their website, this trial does not require a credit card. Plus, new customers to TaxJar do not face setup fees, cancellation fees, hidden fees, or forced annual contracts. From our research we found that annual contracts are the standard for Avalara customers: some being multi-year. Meanwhile, TaxJar proudly offers monthly plans because they stand behind their service rather than rely on contracts to keep customers around.

Last but not least are the fees built in to each software. Our research indicates that a typical 20K transaction year with TaxJar will cost $2,150, a pittance compared to the $12,515 price tag for Avalara customers. The combination of an activation fee, annual connector fee, annual license, and monthly billing (among others) from Avalara contributes to this hefty final figure. All of this information illustrates why TaxJar is the more cost-efficient model.

Customer Support

Another pillar of great software is strong customer support, and unfortunately for Avalara customers, this is where they fall significantly short. The Avalara adage of ‘Tax compliance done right’ does not accurately reflect their customer support services. Time and time again customers have complained about the abysmal support from Avalara. The general consensus among TaxJar customers is positive for their customer support. Calculating accurate taxes is important and the consequences can be more than a bit frustrating. As a result, TaxJar’s solid reputation of good customer support is so integral to the overall customer experience.

Overall Customer Satisfaction

No matter which software you choose, we hope this comparison has been useful. Although both serve the same purposes, our ZBrains Tax Jar integration provides all the benefits of TaxJar without the price tag of Avalara. As an added bonus, if you use Magento to help sell, TaxJar offers free sales tax calculations!

Long-time users of TaxJar and brand new customers alike can benefit from our Zoho Integration for TaxJar. Discover the benefits of this and all of our Zoho integrations!