The TaxJar feature when enabled will automatically apply sales taxes to orders based on the city, state, and zip code. It is important to note that enabling this feature requires you to enter the following details to an order:
- Address 1
- City
- State
- Zip Code
TaxJar applies sales tax intuitively using those information, so if one of those fields are left blank, sales taxes will not automatically apply.
To enable the TaxJar feature, follow the instructions below:
- On the Module Menu, click Farm Management and select Update Farm. You will be directed to the Update Farm page.
- Scroll down and locate the Farm Settings panel. This panel enables you to update the Farm Settings to match your farm preference.
- Find the Use TaxJar field and click its drop down arrow. Select Yes to enable the feature or No to disable this feature.
- Scroll down to the bottom of the page, find and click the button to update the changes.
- A Confirmation message will appear on the screen indicating that the Farm Settings was successfully updated.
How are taxes applied?
Orders that are for delivery will base taxes on the Delivery Address. If the orders are for Pickup or Drop Ship, it will be based on the Farm's address.
If TaxJar is enabled, ensure to include the Delivery address' Address 1, City, State, and Zip code for delivery or the Farm's Address 1, City, State, and Zip Code for Pickup or Dropship orders.
I do not want to use the TaxJar feature, what are my options?
Using the TaxJar feature is always optional, it is a very useful and accurate tool but you can always disable it and use the methods that you are comfortable with. If the TaxJar is disabled, you will have to manually enter the sales tax or set sales taxes based on the city and state. See How to Create Sales Tax.
After creating sales taxes, the system will apply sales taxes based on the city and state of the orders if it is for delivery or the farm's city and state for pickup/drop ship.
It is important to note that for disabled TaxJar feature, you are required to enter the City and State in the order creation to apply the preset sales taxes.