Configure TaxJar Tax Calculation Data

TaxJar calculates tax using information from your Maxio site, product catalog, customer records, and TaxJar account. Use this article to prepare the data TaxJar needs before you create taxable subscriptions or invoices.

Configure the tax origin address

Your tax origin address represents where your business operates from. TaxJar uses the origin address to determine sourcing rules for each transaction.

Set the tax origin address in your site's tax settings. Without a valid origin address, TaxJar calls will fail.

Configure taxable products and components

Define items, products and plans in Maxio as usual. Mark them as taxable when sales tax should apply.

If a TaxJar product tax code is present on taxable items, products, or plans, Maxio sends it as the product tax code for the line item.

Assign product tax codes

Product tax codes map Maxio items, products or plans to the correct taxability category in TaxJar, such as SaaS, digital goods, or professional services. TaxJar uses the code to determine whether and at what rate the line item is taxable in each jurisdiction.

Tax codes are maintained in TaxJar. Maxio passes them through on each invoice line.

Collect customer address details

Customer shipping and billing addresses are captured in Maxio. Your site's tax address option determines which address Maxio sends to TaxJar.

• For shipping-based tax settings, collect a complete shipping address.
• For billing-based tax settings, collect complete billing address details on the payment profile or signup form.
• For mixed address settings, keep both shipping and billing addresses complete.

Address fallback behavior

For mixed address options, Maxio can retry with the alternate address if TaxJar rejects the primary address.

• Shipping then billing: Maxio uses shipping first and can retry with billing.
• Billing then shipping: Maxio uses billing first and can retry with shipping.
• Shipping Address Only: Maxio uses customer shipping address.
• Billing Address Only: Maxio uses payment billing address.

For best results, keep customer shipping and billing addresses complete and standardized.

Apply customer exemptions

Tax exemption is typically used for resellers, government agencies, non-profits, or other entities that qualify under jurisdictional rules. Exemption status is managed in TaxJar and respected on Maxio invoices.

When configuring an exempt customer in TaxJar:

• Set the exemption category on the customer record, such as wholesale, government, or non-profit.
• Confirm the customer's billing or shipping address matches the address used in Maxio so TaxJar can match the transaction to the exempt customer.

TaxJar can override an applied exemption in certain scenarios, such as when a customer is exempt in one region but subject to tax in another. This is expected behavior and is determined by TaxJar at the time of calculation.