Our quest to make sales tax simpler for small business continues. Today we released Sales Tax Automation – the simplest way to collect sales tax and get automated sales tax reporting for US-based Magento store owners.
What are the Benefits to Sales Tax Automation?
First, Magento users asked us for an easier way to collect sales tax and track what they’ve collected (so that filing returns becomes easier). Second, they were tired of using other solutions that call another server to get tax rates, thus slowing down the checkout process. Who could blame them? Customers who experience poor performance or a confusing checkout process are less likely to make the purchase. That means lost revenue. Sales Tax Automation solves both requests – easier collection, tracking, and no calls to other servers for rates. It’s just fast and it works.
We worked closely with Magento store owners to make sure we delivered what they needed the most. Easy installation was at the top of the list. Sales Tax Automation eliminates the need to figure out if your state charges sales tax based on your location or the location of your customer. Same for taxability of shipping. That’s all taken care of automatically for you for FREE. All a store owner has to do is enter in TaxJar API Token that’s easily accessible from their TaxJar account. See what easy installation and automated configuration looks like below.
Sales Tax Rates
After the API Token is entered, Sales Tax Automation provides tax rates for every zip code in any states where you have sales tax nexus, for FREE, right out-of-the-box. Check out the screenshot below for a seller based in New York.
Clever for California Businesses
Not all states agree on how sales tax should be charged. Some states base it on the point of origin. Others base it on the the destination where the item is being shipped. California is unique. It’s a modified origin state which means sellers are allowed to collect two different sales tax rates (a local rate for customers in their district and the state rate for customers outside their district). Sounds like a nightmare, but it’s not a problem for Sales Tax Automation. If you’re a California-based seller, our automated configuration sets up tax collection exactly how it should be in the Golden State.
New Integration. Same Great Reporting.
What’s great for Magento store owners is TaxJar already makes it simple to track sales tax being collected through the extension. Just ask the sellers on Amazon, Etsy, Shopify, Bigcommerce, or eBay who already love the way our automated reports give them the level of detail they need to file sales tax returns in minutes instead of hours – sales and taxes collected by county, city, and special jurisdictions.
What’s Does Sales Tax Automation Cost?
The extension is free to install. When you install you get tax rates for every zip code in the state where you have sales tax nexus. If you want to get updated rates (we update rates automatically at the beginning of each month) or if your want to use our automated reporting feature, then pricing begins at $19/per month.
As always, we want to hear from you. Let us know what you think of Sales Tax Automation. Look for more announcements coming soon.
Update: Need to collect sales tax from buyers in multiple states? Sales Tax Automation for Magento now supports multi-state nexus. Find out more in our multi-state nexus blog post.