After installing the TaxJar Sales Tax Automation add-on, proceed to configure the add-on settings:
The add-on settings page will look as follows:
API Token: Copy and paste your TaxJar API token into X-Cart.
Enable tax calculation: Turn the toggle on to calculate taxes at the checkout by the store nexus.
Enable tax reporting: Turn the toggle on to automatically import your online store's order and refund transactions into TaxJar. Orders are imported right after they have been paid for and delivered in a complete status (the order payment status is Paid, and the fulfillment status is Shipped or Delivered).
Do not create order in case of tax calculation error: Turn on the toggle to stop order creation if the tax calculation fails.
The setting is available only if "Enable tax calculation" is enabled.
Automatically calculate taxes for: Choose the states for which the auto taxes calculation will be available (taxes will be calculated only for the shipping addresses that match the store nexus).
Debug mode: Turn on the toggle to include the debug information into the tax_jar log file.
Click Submit to make the settings active.
When TaxJar is connected, proceed to the Store Setup-> Taxes section to configure the add-on further. Here you can set up your nexus addresses in TaxJar:
Click on the Manage your nexus addresses link. A TaxJar page will open where you can add the nexus state(s) valid for your store. Then, TaxJar will automatically calculate and report taxes for the nexus state(s) specified in your account.
Also, you can assign TaxJar category tax codes to product tax classes to support product exemptions. For this purpose, open the Tax Classes tab of the Store Setup -> Taxes section, create your product tax classes (if you have not done it yet), and assign TaxJar category codes to your product tax classes.