Sometimes customers ask us if they should sign up for TaxJar Reporting or if they also need to use TaxJar’s SmartCalcs sales tax API. This blog post will explain the difference between these two TaxJar products and guide you to the one you need.
TaxJar Reporting was TaxJar’s very first product and is all about “post-transaction sales tax compliance.” Ugh. What does that fancy phrase mean? Simply that TaxJar Reporting is for sellers who have already collected sales tax and are now looking for a quick and easy way to get your sales tax returns filed.
TaxJar Reporting integrates with the shopping carts and eCommerce platforms you sell on (like Amazon, eBay or Shopify). We pull in all of the sale tax you’ve collected and break it down by state on your TaxJar Dashboard.
Within each state, we break down the sales tax you collected by county, city and other special taxing district. This is all the information the state wants from you when filing a sales tax return, just the way they want to see it.
Then, when your sales tax returns are due, TaxJar will walk you through filing your sales tax return with each state.
Who Should Use TaxJar Reporting?
TaxJar Reporting is useful for anyone who has collected sales tax and doesn’t want to spend the time or hassle poring over each transaction and figuring out how your state wants you to enter it on your sales tax form.
This includes sellers who sell on one or more of the following carts or platforms:
- Stripe Relay
Even if you sell on another platform, you can pull your information into TaxJar via .csv file and TaxJar Reporting will still break your sales tax collected down for you into sales tax return-ready reports.
Use TaxJar Reporting if the platform you sell on collects sales tax, and you need to report and file.
TaxJar’s SmartCalcs Sales Tax API
TaxJar’s SmartCalcs sales tax API is a sales tax calculation engine for developers and merchants running their own storefront, shopping cart or marketplace. With SmartCalcs, TaxJar works within your cart to determine how much sales tax you should collect.
SmartCalcs takes your address, your buyer’s address, your sale and shipping amount, and the state’s specific sales tax rules into account to make sure you charge your customer the right amount of sales tax on every sale.
SmartCalcs does require a little bit of setup, so you’ll need developer resources. The good news is, developers love SmartCalcs! Our excellent documentation walks you through just what it will take to get started with SmartCalcs.
You can see SmartCalcs yourself with our SmartCalcs Demo.
Who Should Use SmartCalcs?
Sellers and developers who are building or running an online storefront, shopping cart or marketplace and need to collect sales tax will find SmartCalcs easy to use and accurate.
That’s even if you sell products that are taxed differently in different states, such as clothing, food, software, digital products, and more. (Click here for a full list of product categories SmartCalcs supports.) We also handle sales tax calculation in not just the U.S., but also sales tax in Australia and Canada, and VAT tax in the European Union.
If you need sales tax calculation, check out the SmartCalcs sales tax API. There’s a no-risk 30-day free trial while you test it out.
And, of course, once you’ve collected sales tax, you can use TaxJar Reporting to report how much sales tax you’ve collected and file your return!
Do you have questions or comments about the difference between TaxJar Reporting and TaxJar’s SmartCalcs sales tax API? Start the conversation in the comments!