The TaxJar integration

On the TaxJar page, you enable the TaxJar integration, configure the default customer country, select your internal location, and map Autotask tax categories to TaxJar tax categories.

About the TaxJar integration

Many MSPs don't have the resources to keep up with changes to tax rates in multiple jurisdictions. We have integrated with the TaxJar sales tax compliance platform, a cloud-based solution that will accurately calculate sales tax rates for multiple jurisdictions. It provides an alternative to setting up your own tax categories and tax rates in Autotask.

TaxJar maintains a large database of tax categories. Only a subset are relevant to the typical Datto partner. Datto has selected this subset for quick mapping, but all other TaxJar categories are available to be added to this list.

Differences between the full version of TaxJar and the free version included with Autotask

The Autotask integration with TaxJar that is provided as a complimentary service by Kaseya is limited.

  • While Autotask sends detailed tax line items to TaxJar, only the invoice-level Tax Total is returned.
  • The integration is between Autotask and TaxJar, not between your accounting software and Taxjar.
  • Only US and Canada are supported.
  • The integration does not provide the breakdown necessary for sales tax filing.

Use case for the free integration

If you do your tax calculations in your accounting application but want to send invoices from Autotask, the free TaxJar integration provides an alternative to setting up your own tax categories and tax rates in Autotask for just this purpose.

It is important is that you carefully set up the tax accounts (GL codes) in your accounting application to match the setup in Autotask, so that the tax calculations match.

The full version of TaxJar is integrated with your accounting application. You must purchase a subscription from TaxJar directly.

  • Each tax component (state tax, local tax) is calculated and transferred back to your accounting system in detail.
  • State-by-state sales tax reports with city, county, and special district breakdowns are supplied.
  • Automated sales tax filing and remittance is supported.
  • Prebuilt integrations with popular e-commerce and ERP platforms are available.
  • More countries are supported. Refer to International Product Taxability.

IMPORTANT  Be aware that this means separately calculating taxes in Autotask and in your accounting software, and unless TaxJar/Autotask tax categories exactly match the GL codes in your accounting software, the tax amounts may not always match. You may owe more sales tax to various tax authorities than you charged your customers.

Getting started

The TaxJar integration is an installed module that must be enabled by Datto. Please contact your account manager.

Configuration

As part of the configuration of the TaxJar integration, you must create and map the Autotask tax categories to TaxJar categories. Which approach you take will largely depend on whether you are an existing Autotask customer and have set up your tax categories in Autotask, or have not yet done so. You can:

  • create Autotask tax categories from TaxJar categories: if you are a new customer, we recommend you create your Autotask tax categories from TaxJar categories. Refer to Create Autotask tax categories from TaxJar categories.
  • map TaxJar categories to your existing Autotask tax categories: if you are an existing customer and have already mapped your Autotask tax categories to Autotask billing codes, you will be mapping your existing Autotask tax categories to TaxJar categories. Refer to Map existing Autotask tax categories to TaxJar categories.
  • set up an internal location for each state where you will have an economic nexus: if you do business and need to collect sales taxes in more than one state, you must set up an internal location for each state and identify them as a TaxJar economic nexus. Refer to TaxJar Nexus.

To configure the TaxJar integration, do the following:

  1. To open the page, use the path(s) in the Security and navigation section above.

  2. Complete the following fields and settings:

Field or setting Description

General

Use TaxJar to calculate tax

Select this check box to enable the TaxJar integration and use TaxJar to calculate taxes.

IMPORTANT  We recommend that you enable TaxJar after you have configured all settings and mapped all your billing codes.

Country (when country is not available)

This list includes the countries that are set to Active in your Autotask instance. Refer to Managing your Countries list. It defaults to the country associated with your default internal location.

The selected country will be passed to TaxJar for organizations that don't have a country specified, and will be used for internal locations and nexuses.

From Location

The internal location you select here will be passed to TaxJar for the purpose of calculating origin-based taxes. It defaults to your default internal location.

If you are located in an origin-based state, you charge the amount of state and local sales tax effective at your business location to all customers in your home state. For more information, refer to Origin-Based and Destination-Based Sales Tax Rate.

Select the internal location where your inventory is stored.

Tax Category / TaxJar Category Mapping

New Tax Category

Refer to Create Autotask tax categories from TaxJar categories.

Add TaxJar Category

Refer to Add a TaxJar category to your Tax Categories list.

Mapping table

The Tax Category / TaxJar Category Mapping table allows you to associate Autotask tax categories with TaxJar categories.

  • You can select the same TaxJar category for multiple Autotask tax categories.
  • You can use TaxJar for some categories and leave others unmapped. If an unmapped category is used and your tax table is configured in Autotask, Autotask will optionally calculate the taxes.

How to...