How tax calculation works? (TaxJar integration)
You asked - we delivered! As of now, all USA, UK, Canada or Australia-based merchants on Subbly can have automatic tax calculator added on the checkout. 🧮
Connecting with TaxJar
Since we're using TaxJar's API to handle tax calculations on the checkout you will need a working TaxJar account properly connected to your Subbly store, so please proceed with the following 👇
- go to the App Store section of your admin here
- scroll down to TaxJar and click on Install and Configure
- paste the API token from your TaxJar admin in the appropriate field and make sure to enable the integration
In case you're struggling with this step, here's how you can extract the API token from the TaxJar admin: https://support.taxjar.com/article/160-how-do-i-get-a-smartcalcs-sales-tax-api-token
Enabling tax calculator on the checkout
Easy as pie! All you have to do is to enable the tax settings for your store from this page, after you actually connected TaxJar.
How it works?
If tax settings are enabled on your Subbly admin, we will automatically do the hard work for you by making appropriate tax calculations on the checkout depending on your state of residence and the customer's location.
As you can see, we've improved final step of the checkout to include a list of states in the drop-down menu as seen in the picture below.
Since we handle all the logic for taxation rules based on location it is essential that the customer provides correct information about his country and state of residence on the checkout.
Tax will be added as a separate line item and will be visible on customer's receipt.
What about the existing customers?
If your tax settings are enabled this will affect your existing customers also.
If their address is not invalid (poor formed state names), taxes will be added to their subscriptions going forward.
❗ Please note that, if applicable, taxes will be added as a separate line item on customer's invoice after they finish the checkout. As of now, taxes are not itemized on the actual checkout but are included in the price shown on the checkout.