Sales tax automation for orders at your X-Cart store falls back on TaxJar's extensive database of taxability data for different taxing jurisdictions (also known as nexus). The TaxJar Sales Tax Automation add-on allows your online store to connect to the TaxJar engine to determine the nexus to which the sale transaction pertains and have the appropriate product taxability rules applied to the order. TaxJar performs nexus analysis based on the address data provided.
The add-on passes to TaxJar all required information necessary to perform the sales tax calculation. TaxJar uses this information to determine the nexus and select the taxing rules to apply. The sales tax calculation results for an order are provided directly on the checkout page before the order is placed.
To increase the accuracy of tax calculations, TaxJar performs an address validation while a customer updates the Shipping info of the order.
For address validation, your online store makes an address validation call to TaxJar. TaxJar performs the address validation and returns the results to the X-Cart store. If it fails to resolve the input address data successfully, your online store displays an error message so the customer can correct the address info.
A customer will not be able to place an order with an incorrectly defined address if the "Do not create order in case of tax calculation error" option is enabled.
Then, all order and refund transactions are imported into TaxJar automatically and registered in the Transactions section. Orders are imported right after they have been paid for and delivered in a complete status (the payment status is Paid, and the fulfillment status is Shipped or Delivered). Pending orders that may fall under cancellation are not imported into TaxJar. TaxJar forms periodic tax reports in the Dashboard based on the imported order info.