TaxJar API for Marketplaces

If you are acting as a Marketplace (a platform for merchants to sell their products on), you can set up your sales tax collection to use the TaxJar API.  

We have worked with several marketplaces that have set up their sales tax collection using our API:

Some offer tax calculation services through a single marketplace API token and send in the calculations with addresses stored in your system.

    • In this situation, you would need to use the "from_" address and "nexus_address" parameters because you'd need to store your sellers' nexus addresses in your system and send them into TaxJar when making a sales tax calculation request.
    • We'd also recommend using the "from_" address because that will help ensure that the correct sourcing is applied to a Transaction when requesting a sales tax calculation; we explain more about sourcing here.

Others upsell TaxJar and allow their merchants to place a TaxJar API token in their account to set up tax calculations per their own TaxJar State Settings and then to push fulfilled order history into TaxJar for sales tax Reporting.

If you're seeking more information, we offer a Sales Tax Guide for Online Marketplace Providers and more technical information in our Integration Guide.