Create a Taxed Contract with TaxJar

Use a taxed contract to confirm that Maxio can calculate TaxJar sales tax for taxable items before billing.

Before you start

Confirm that the TaxJar setup and required tax calculation data are complete before creating a taxed contract. Missing addresses, taxability settings, or credentials can prevent tax from calculating correctly.

• TaxJar is enabled in Maxio.
• Invoicing Suite and Billing Portal is enabled for your Maxio Core account by Maxio Support. Without it, Maxio Core can't hand off Contract invoices for TaxJar tax calculation.
• The tax origin address is complete.
• The customer or invoice has the address required by your tax address setting.
• The invoice includes taxable items.
• The site currency is supported by your TaxJar setup.

Step 1: Create or update the item

The item catalog controls which items are taxable. Review the catalog before creating the contract so TaxJar receives the correct line item details.

1. Define items in Maxio Core.
2. Mark items as taxable when sales tax should apply.
3. Add TaxJar product tax codes when TaxJar should use a specific product category.

Step 2: Create the customer record

The customer record must include the address required by your tax address setting. TaxJar uses the customer destination address to calculate applicable sales tax.

1. Enter the customer address information required by your tax address setting.
2. For shipping-based tax settings, collect a complete shipping address.
3. For billing-based tax settings, collect complete billing address details.

Step 3: Configure the contract and invoice

After the item and customer record are ready, add taxable items to the contract invoice. Preview the invoice before completing the issuing and sending of the invoice.

1. Add taxable items to the contract invoice.
2. Preview the invoice to confirm tax is calculated before billing.
3. Complete sending and issuance of the invoice when the tax amount looks correct.

Test before going live

Test the full TaxJar workflow in Sandbox before using a Production key. This helps confirm tax amounts, jurisdiction details, exemptions, and TaxJar metadata before live invoices are created.

1. Connect your Maxio test site to a TaxJar Sandbox account.
2. Run sample contracts, invoices, voids, and refunds.
3. Verify tax amounts, jurisdiction breakdowns, and exemption behavior.
4. Confirm TaxJar metadata, including transaction ID and jurisdiction detail, is stored on invoices.

Once validated, switch to the Production API key on your production site.