TaxJar

Sales tax calculations happen inside the conversation with TaxJar AI

Customers ask about tax amounts, nexus obligations, and VAT validation constantly. Your AI agent connects to TaxJar's tax engine, calculates exact rates by address, and answers tax questions in real time. No more 'let me check and get back to you' on tax inquiries.

Chosen by 800+ global brands across industries

Tax compliance operations your agent handles

From real-time tax calculations to transaction management and VAT validation, your AI agent accesses TaxJar's full suite of sales tax APIs during live conversations.

TaxJar

Use Cases

Tax questions resolved instantly

Real scenarios where AI-powered tax calculations eliminate back-and-forth emails and keep your business compliant without manual effort.

Instant Tax Estimates for Hesitant Buyers

A shopper on your website asks 'How much tax will I pay on a $200 order shipped to California?' Your AI Agent takes the destination ZIP code, passes the order amount and shipping to TaxJar's calculation engine, and returns the exact tax amount with a state and district breakdown. The customer sees their total before checkout. Cart abandonment from tax surprises drops noticeably.

VAT Validation for B2B International Orders

A European business partner submits a purchase order and provides their VAT number for tax exemption. Your AI Agent validates the VAT number against TaxJar's API instantly, confirms it is active and legitimate, and applies the exemption. No manual lookup on government portals, no delays. International B2B orders process faster with compliant documentation.

Automated Tax Reporting After Every Sale

Each time a transaction completes, your AI Agent creates the corresponding order transaction in TaxJar with accurate addresses, line items, and tax amounts. When refunds happen, the agent records refund transactions automatically. At filing time, your accountant finds every transaction already logged in TaxJar, ready for reporting.

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FAQs

Frequently Asked Questions

How does the AI agent calculate sales tax for a specific order?

The agent sends the order amount, shipping cost, origin address, and destination address to TaxJar's Calculate Sales Tax endpoint. TaxJar applies the correct state, county, city, and district rates based on exact addresses and returns the precise tax amount. The agent presents this to the customer in real time.

Can the agent handle tax-exempt customers and wholesale orders?

Yes. TaxJar's API supports exemption types including wholesale, government, non-profit, and other. The agent passes the customer's exemption type and customer ID to the calculation endpoint, and TaxJar applies the correct exemption rules. VAT numbers can also be validated for international exemptions.

What TaxJar API credentials does Tars require?

Tars needs your TaxJar API token, which you can generate from your TaxJar dashboard under Account Settings. The token provides access to tax calculations, rate lookups, transaction management, and customer records based on your TaxJar plan level.

Does the agent consider nexus addresses when calculating tax?

Yes. The tax calculation request can include nexus_addresses, which tell TaxJar where your business has tax obligations. TaxJar uses these along with the origin and destination to determine whether tax applies and at what rate. Your nexus configuration in TaxJar is also respected.

Can the agent look up tax rates without a full order?

Absolutely. TaxJar's Show Tax Rates endpoint accepts just a ZIP code (with optional city, state, and street for precision) and returns the combined rate breakdown. Useful when customers simply ask 'What's the sales tax rate in my area?' without placing an order.

Does Tars store any tax calculation data from TaxJar?

No. Tax calculations and rate lookups are performed live via TaxJar's API during each conversation. Results are used to respond to the customer and are not stored on Tars servers. Transaction records are created in your TaxJar account, where they persist for reporting.

How does the agent handle refund tax adjustments?

The agent creates a refund transaction in TaxJar using the Create Refund Transaction endpoint, referencing the original order's transaction ID. TaxJar records the refunded amounts including sales tax, ensuring your tax liability adjusts correctly for the filing period.

What tax categories does TaxJar support for product classification?

TaxJar maintains a full list of product tax categories (clothing, food, digital goods, SaaS, etc.) accessible via the List Tax Categories endpoint. The agent can retrieve these categories to help classify products correctly, ensuring the right tax rates apply based on product type and jurisdiction.

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Privacy & Security

We’ll never let you lose sleep over privacy and security concerns

At Tars, we take privacy and security very seriously. We are compliant with GDPR, ISO, SOC 2, and HIPAA.

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