To start, I would like to mention that we are sales tax professionals who manage many of our clients through TaxJar. I have experience working with many sales tax platforms such as Taxify, Avalara, and TaxJar, and no solution comes close to eliminating the hassle and burden of sales tax for e-commerce businesses. The number one reason we love Taxjar is its usability - TaxJar's design is simple, elegant and effective. TaxJar's integrations are powerful, their tax rate calculation is on-point, and their AutoFile service is always done on-time. Their support team is always helpful, and gets back to us fairly quickly. I have no problem recommending TaxJar to any e-commerce company. It greatly reduces the amount of time we spend on processing sales tax filings, and ensuring that the tax collected by the sales channels is accurate.
AUTOFILE: At present time, you can only have TaxJar AutoFile returns using the tax that TaxJar calculated as being due. While this might sound helpful, it can become hugely problematic if you sell products that may be exempt in certain states (ex. clothing, supplements). TaxJar needs to support remitting the tax collected (rather than calculated)
PRODUCT TAXABILITY: At present time, TaxJar has a handful of product exemption codes (which is great) but you can only apply the taxability codes to transactions if they take place on Amazon or Shopify. If you sell on any other platform, you can not apply the custom product tax codes.
ECOMMERCE ONLY: TaxJar does not work well if you are selling on channels that do not integrate with TaxJar, OR products that have custom product taxability (ex. SaaS companies). TaxJar should consider beefing-up their CSV import functionality, as well as support custom product tax codes that can be created by the user.
CSV IMPORT: At present time, you can not upload transactions based on tax codes, nor exemption states (Ex. resale). If you make a lot of sales at resale, you need to import the transactions, then manually search and categorize them.
SUPPORT: At present time, support is limited to email unless on a Plus plan. Dedicated phone support for larger clients would be appreciated, especially for time-critical issues.
Overall, This tool works best if you:
-Sell primarily on eCommerce websites (ex. Amazon, Shopify, Ebay)
- Do not sell a lot of products to exempt entities, or for resale
- You do not sell products with custom product taxability (ex. supplements, clothing, SaaS)
If you fit within the niche that TaxJar targets, it is wonderful. If you do not, I would look at other options or prepare to do a lot of manual data manipulation.