Untaxed, Exempt and Wholesale Transactions in AutoFile
Our reports are based on the transaction information we receive from your cart.
If you don't collect sales tax on a transaction, our system will see that the sale is untaxed, but we're not able to see an explanation as to why a particular item was untaxed.
We're working on ways to support this better moving forward, but because of this current limitation, if you enroll in AutoFile, we will view all of your transactions as taxable when we file your returns.
- This means we'll report to the state that all of your sales during your entire filing period should be taxed, which will result in filing a payment that's closer to the estimate you see in the Expected Sales Tax Due Report, rather than the amount you see in your Actual Sales Tax Collected Report.
- If you're currently selling (or plan to sell) a large amount of exempt or nontaxable items, this may calculate a much higher total of what's owed and you'll end up paying the uncollected taxes out of pocket on all transactions. Currently, you can prevent this by designating individual transactions in your TaxJar account as exempt. (Read more about how to designate exempt transactions in TaxJar here.)
- We are also working on functionality to allow you to designate customers as exempt. Click here to request to be notified when this feature becomes available.
For now, if you have a large number of untaxed or tax exempt items and are unable to designate them as tax exempt in TaxJar, we would we would suggest that you file a manual return rather than enrolling in AutoFile at this time.
And if you click here, we'll notify you when we're able to support your untaxed and exempt transactions with AutoFile!