Sales Tax Holidays
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How to handle Sales Tax Holidays in TaxJar?
The TaxJar API currently does not support all Sales Tax Holidays.
Many states have detailed conditions on their Sales Tax Holidays and we are currently working on supporting Sales Tax Holidays for more granular categories.
- We cannot recommend disabling all calculations for the state. If you sell a variety of products, disabling your calculations can open you up to owing sales tax that you should have collected and therefore may have to pay out of pocket.
If you sell via one of our official integrations that has their own sales tax collection functionality, you would need to confirm support for sales tax holidays directly with their support teams.
- For example, if you sell via Amazon, we know that Amazon honors sales tax holidays so it is important to ensure that your Product Tax Codes are set up correctly on Amazon.
- You can then use your Actual Report to manually file your Sales Tax Return.
How does this affect me if I do not sell this type of product?
The pop-up notification in your account states that we may not support an upcoming Sales Tax Holiday for one of your nexus states.
- If you do not sell this type of product, then you can disregard this message.
As a reminder, we are unable to provide advice to determine which category is the best match for your products. Please consult the state directly or a sales tax expert.
Where can I find more information about sales tax holidays for 2020?
You can find a comprehensive list of states which participate here: 2020 Sales Tax Holidays.
Not all states hold sales tax holidays. Some are annual and recur under legislation, while others that are non-annual require legislation each year.
- We also list the states that do not participate in Sales Tax Holidays.
What if I'm enrolled in AutoFile?
If your business uses AutoFile, TaxJar will consider sales of those items as fully taxable.
- You may submit a request to skip AutoFile for one month and manually file that return using your Actual Report.