Canada

Integrate with your own TaxJar account

With TaxJar, you can automate sales tax reporting and filing for various regions. You can sign up to TaxJar in just a couple of minutes.

To begin the process of integrating your TaxJar account with Billsby, head to TaxJar and go to Account > TaxJar API, and copy your 'Live Token'. Then in Billsby, head to Configuration > Taxes > Canada and click 'Integrate with your own TaxJar account' and this will open up a modal where you can paste the API token.

Once pasted, you'll need to specify the product category as well as your auto-file preference.

After you integrate with your TaxJar account, you can add your tax registration number which will appear on your customers' invoices. You can also specify whether you want your customers' tax registration number collected during the checkout journey or not. To do this, either hit the toggle on or off.

Make sure to hit 'Save' after you've made any changes.

When integrating with your own TaxJar account it's important you keep your TaxJar State Settings up to date by providing accurate details on your existing sales tax nexuses, and adding new ones as you need them. Not keeping your State Settings up to date can cause issues when trying to calculate the correct sales tax.

Automatic Tax Calculations by Billsby

If you're unsure what sales tax to charge your customers, don't worry. Here at Billsby we offer you an additional service to calculate your sales tax for only $0.02 per transaction. This cost is not included in your free trial, however.

With the Automatic Tax Calculations we still require your tax registration number. Once we have validated this address you will need to specify the product category and consent to the $0.02 transaction fee for the service.

As stated, in order to qualify for our automatic tax calculations offer, you must only have one nexus. So this option wouldn't be suitable if you have more than one nexus, if the state of your primary business location is in a different location to your nexus and are a 'remote' or 'out-of-state' seller, or if you use Fulfilment by Amazon, for example. If this option isn't suitable for your business you'll need a TaxJar account to ensure you're sales tax compliant.
‘Nexus’ is a specific type of connection to a state that’s significant enough for you to be required to comply with that state’s sales tax laws. For more details on sales tax nexus, check out this post by TaxJar.

If you think you might have sales tax nexus in another state, it's best to check with that state's taxing authority to determine whether or not you're required to pay sales tax in that state. If you do have sales tax nexus in a state, you'll need to register for a sales tax permit with the state's tax department in each state before collecting sales tax.

You will also need to specify whether you want your customers' tax registration number collected during the checkout journey or not. To do this, either hit the toggle on or off.

To complete the automatic tax calculations process just type in your nexus address and click 'Confirm'.

Tax could not be applied to a customer's invoice

Several factors are taken into account when calculating the correct amount of sales tax that should be applied to an invoice, so it's important to ensure both the merchant and the customer have provided the correct information to keep the process running smoothly.

If we notice a problem preventing sales tax being applied to a customer's invoice, we'll recorded in the event log for the individual subscription, and you'll be notified by a warning banner at the top of your screen.

We'll also send an email notification to your email address on file, including the customer ID and the error message explaining why the reason the sales tax amount could not be calculated and applied to the invoice to help you resolve the issue.

Some of the most common problems we see preventing sales tax being applied to an invoice are things such as:

• Not authorized for resource or Incorrect/invalid integration credentials: If you're using your own TaxJar account, entering the wrong API key or using an expired API key will prevent your sales tax from being calculated entirely across all invoices. To resolve this, ensure that your API Key is correct in your Settings > Configuration > TaxJar menu.
• Incorrect/invalid customer Zip code If a customer has used the wrong zip code or address, we can't accurately calculate the sales tax amount. Ensure the address you have on file for the customer(s) is correct. You'll need to confirm their full address is correct and for the most accurate sales tax calculations, they'll want to be using a ZIP+4 Code. Whilst 5 Digit ZIP Codes are fine in most cases, a full 9 Digit (ZIP +4) ZIP Code is preferred, especially in more rural areas.

If you're still experiencing issues with your sales tax calculations, please reach out to us using the chat icon in the bottom right-hand corner and we'll try to help you resolve the problem.

FAQ's

How is sourcing calculated with Automatic Tax Calculations or TaxJar?

When calculating sales tax several factors are taken into account before arriving at the proper calculation. We automatically take into account nexus determination, sales tax holidays, and more. When calculating sales tax we'll use the customer's shipping address in instances where the tax rate is destination-based. If your customer doesn't provide a shipping address in Billsby, we'll use their billing address instead to determine the destination the customer will take possession of the product.

Currently, we don't facilitate shipping and fulfillment, so if you're using JaxJar or Automatic Tax Calculations by Billsby, we'll use the Company address you've provided as the point of origin for the sale and the address the order is coming from.

How is shipping cost handled when calculating taxes?

As we don't support shipping and fulfillment at Billsby, we'll always calculate the sales tax for your customer's order with a shipping cost of $0. As there are a number of States where shipping charges are taxable, it's important if you ship physical products to discern the laws around taxable shipping in your state, and other states in which you have sales tax nexus.

In the majority of states, shipping charges are taxable as a part of the item regardless of whether the charge is a part of the price of the item, or if it's listed separately whilst, in some states, shipping charges are not taxable if you show the charge separately from the price of the item.
Creating an add-on for shipping charges in Billsby will result in the cost of the add-on being subject to tax along with all other subscription elements.

For further guidance on how each state handles shipping charges, check out this post by TaxJar. If you're unsure of how best to charge shipping costs with these limitations, please talk to a representative in your state

Why have I been notified that tax couldn't be applied to a customer's invoice?

Several factors are taken into account when calculating the correct amount of sales tax that should be applied to an invoice. If we notice a problem with one that's prevented sales tax from being applied to a customer's invoice, we'll try to notify you of the issue to help you keep your billing running smoothly. We'll send an email notification to your email address on file, including the customer ID and the error message explaining why the reason the sales tax amount could not be calculated and applied to the invoice to help you resolve the issue, as well as showing a warning banner at the top of your control panel screen.

Some of the most common problems we see preventing sales tax being applied to an invoice are things such as:

• Not authorized for resource or Incorrect/invalid integration credentials: If you're using your own TaxJar account, entering the wrong API key or using an expired API key will prevent your sales tax from being calculated entirely across all invoices. To resolve this, ensure that your API Key is correct in your Settings > Configuration > TaxJar menu.
• Incorrect/invalid customer Zip code If a customer has used the wrong zip code or address, we can't accurately calculate the sales tax amount. Ensure the address you have on file for the customer(s) is correct. You'll need to confirm their full address is correct and for the most accurate sales tax calculations, they'll want to be using a ZIP+4 Code. Whilst 5 Digit ZIP Codes are fine in most cases, a full 9 Digit (ZIP +4) ZIP Code is preferred, especially in more rural areas.

What do I do if I think my customers are being charged the incorrect tax?

If you're using Automatic Tax Calculations by Billsby or you've integrated with your own TaxJar account and you think your customer(s) have been charged the wrong amount of sales tax, please follow the following steps:

• Establish whether you've got sales tax nexus in the state the customer's address is from. If you've not got sales tax nexus in the state, you're not required to charge sales tax.
• If you're using Automatic Tax Calculations by Billsby, check that you've provided the correct information for your sales tax nexus in your Settings > Configuration > Taxes > Automatic Tax Calculation menu. Or if you're using your own TaxJar account, check that your API Key is correct in your Settings > Configuration > TaxJar menu and that you've provided the correct information for your sales tax nexus in your TaxJar State Settings.
• Make sure you've provided the correct Company address in your Settings > Configuration > Company Details > Address menu, as we use the Company address you've provided as the point of origin for the sale and the address the order is 'coming from'.
• Lastly ensure the address you have on file for the customer(s) is correct. You'll need to confirm their full address is correct and for the most accurate sales tax calculations, they'll want to be using a ZIP+4 Code. Whilst 5 Digit ZIP Codes are fine in most cases, a full 9 Digit (ZIP +4) ZIP Code is preferred, especially in more rural areas.

If you're still experiencing issues with your sales tax calculations, please reach out to us using the chat icon in the bottom right-hand corner and we'll try to help you resolve the problem.