Our customers asked and we answered. We’re proud to announce that the Sales Tax Automation extension for Magento now supports our customers who have sales tax nexus in multiple states.
Why multi-state nexus?
As eCommerce becomes more complex, any number of factors may cause online sellers to have sales tax nexus, or presence, in more than one state. They could have an employee in another state, an additional office, or even store products in an out-of-state warehouse. Depending on the rules sat down by each state’s taxing authority, any of these circumstances could mean online sellers need to collect sales tax from buyers in more than one state.
Before Sales Tax Automation from TaxJar, Magento users were stuck automatically collecting sales tax only within their home state. As their businesses grew more complex, their sales tax solution just wasn’t keeping up. And that’s why we updated our Sales Tax Automation extension from TaxJar – to keep up with the realities of today’s eCommerce seller.
How to Set Up Multi-State Nexus in Magento
To have the Sales Tax Automation plugin for Magento pull in sales tax rates for multiple states, you must first set your states up in TaxJar.
Login to TaxJar and from your dashboard click “Change” next to “Your States with Nexus.”
On the next page, click the blue “Generate My API Token” button.
You should see a message stating your token has been generated. Click on API Access again.
On this page you’ll see your unique API token. Copy it.
Click back on the tab with your Magento Admin Panel page open.
Paste the API token into the box.
Now just click on the orange “Save Config” button. This starts the process of finding your states with nexus, and downloading the appropriate tax rates for each of those states.
After it finishes, you’re all set to collect sales tax from customers in multiple states.
For more about sales tax and Magento, check out our free whitepaper Sales Tax 101 for Magento Sellers.
Have questions or comments about the Sales Tax Automation plugin for Magento? Start the conversation in the comments!