TaxJar automates your US sales tax calculations, reporting, and filings.
Please contact Younium helpdesk for guidance how to create a TaxJar account.
Workflow
When TaxJar integration is enabled, Younium will:
Make a Sales tax calculation request to TaxJar for each draft invoices that is created for your Nexus States.
Make a Sales tax reporting request to TaxJar for all posted invoices in all States.
Requirements
You must enter your address in Setting > Legal entities. This is used as the "From address" in the integration with TaxJar.
Your customer addresses must be valid US addresses with State codes (TX, CA, NY, ...)
Enable TaxJar integration in Younium
Enable TaxJar at the setting page Settings > Integrations > TaxJar
To connect to TaxJar you need an API token, click "Get started" enter your API token and select "Validate".
How do I get a TaxJar API token?
Configuration
When token is validated, there are a few configuration parameters that needs some attention.
"Sales tax calculations" - This enables live tax calculations to TaxJar when draft invoices are created for the States listed in "States for tax calculations".
Enter each state and its corresponding tax account using the following format: "state:code","state:code" as illustrated in the example image above.
"Sales tax reporting" - This enabled reporting of the posted invoices to TaxJar. The invoices are found under "Transactions" in your TaxJar account.
Tax template configuration
TaxJar also needs to be enabled for the country within your tax templates. To set this up, navigate to Settings > Accounts receivable > Tax templates and click Add new. Provide a suitable name, description, effective start date, and assign a tax account. Since the actual tax account is determined and calculated via the integration, this template functions primarily as a required fallback.
Next, select your newly created tax template, and in the section below labeled "Tax template details for (insert tax template name here)", click Add new again. Select the applicable country (e.g., United States) and enable the TaxJar checkbox. Confirm that Tax1 is set to zero (0), while Tax2 and Tax3 remain empty.
The "TAX CATEGORY" should correspond to the appropriate category for the respective country.
Nexus
Enter the States where you have Nexus in the field "States for tax calculation", multiple states are entered comma-separated.
Product tax codes
If you sell goods or services that has a reduced tax rate, you can enter the Product tax code in the field "Product tax code" in the TaxJar settings if this should be applicable for all products. It is also possible to set the Product tax code on each charge on the field "TaxJar Product code".
Customer exemption
For your Nexus states you need to enter exemption status on your customers, you find this in the field "Exemption type" on Accounts.