You don’t mess with the tax man, be it the IRS or the the State. And running an ecommerce business I have to deal with both. So when I installed WooCommerce investigated how to collect the proper sales tax. The plugin provides the free extension WooCommerce Tax but it lacks a few features. That lead me to search for a better solution, and it found it through TaxJar. Today I want to discuss why this important plugin is worth the money.
TaxJar: Here’s What It Does
Not only does TaxJar calculates the correct sales tax based on the customer’s address, which is very important, but it provides accurate reporting. And, the service can automatically file your sales tax to each state you have a nexus in.
And that’s very important to me. Before I even thought about operating an ecommerce business I researched economic nexus. I knew more states wanted their sales tax even if I didn’t live in that state or didn’t operate my business physically there. TaxJar assists with this by monitoring the sales in each of the 50 states. Once you hit the nexus requires in that state the plugin will tell you and automatically collect the proper sales tax.
Yes, TaxJar Is Expensive
The biggest con with the plugin is that TaxJar is expensive. Yes, you can use the Starter option for $19 per month but the features are pretty limited. After speaking with one of their Sales Reps and seeing a demo in action, I chose the Professional plan which is $99 a month. And I needed this plan since I was going to use this service with WooCommerce and you can’t do that with the Starter plan.
At the end of the day this is a required business expense so I pay it. I rather not get in trouble by not collecting the proper sales tax or being ignorant about if I should or should not collect tax due to economic nexus.
Finally, I suggest you go ahead and setup a demo of the plugin if you’re going to run an online store. You won’t be pressured to buy the service, I wasn’t, and the Sales Rep will answer any and all questions.
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