---
title: TaxJar Integration
description: Automatically calculate and report your taxes using TaxJar
---
[Skip to content](https://help.paycove.io/knowledge/taxjar-integration#main-content)
[Contact us](https://help.paycove.io/knowledge/kb-tickets/new)
[![paycove\_logo\_explore\_nautical\_wide-08.svg\]](https://help.paycove.io/hubfs/Imported%20images/paycove_logo_explore_nautical_wide-08.svg)](https://www.paycove.io/)
- [FAQs](https://help.paycove.io/knowledge/frequently-asked-questions)
- [Help Articles](https://help.paycove.io/knowledge/help-articles)
Open main navigation
Close main navigation
- [FAQs](https://help.paycove.io/knowledge/frequently-asked-questions)
- [Help Articles](https://help.paycove.io/knowledge/help-articles)
- [Contact us](https://help.paycove.io/knowledge/kb-tickets/new)
- [Go to paycove.io](https://www.paycove.io/)
[Go to paycove.io](https://www.paycove.io/)
Hi there. How can we help you?
- There are no suggestions because the search field is empty.
1. [Help Center](https://help.paycove.io/knowledge)
2. [Help Articles](https://help.paycove.io/knowledge/help-articles)
3. [Payments, Taxes, and Fees](https://help.paycove.io/knowledge/help-articles#payments-taxes-and-fees)
# TaxJar Integration
## Automatically calculate and report your taxes using TaxJar
One of the most common difficulties in quickly and accurately creating invoices and quotes is determining the taxes. Tax calculations will take into consideration the sender's nexus, product categorization and receivers location. We're delighted to leverage our partnership with TaxJar in order to automate these calculations for you.
### How do the tax calculations work?
You can apply tax calculations to a quote or invoice in one of two ways. First, you may manually submit an invoice or quote to TaxJar for calculation. From the deal details page, you can click "calculate taxes" at any time.
Second, you can [configure Paycove to apply these tax calculations automatically](https://paycove.io/tax-settings). If enabled, Paycove will submit each invoice or quote for tax calculations as soon as it's created.
Either way the calculation is triggered, the calculation will take into consideration 3 things.
### How are taxes calculated?
When submitting a quote or invoice for tax calculation, TaxJar considers 3 things:
**1) *From* address or nexus.** This address can be [configured in your tax settings](https://paycove.io/tax-settings), or, if you have multiple nexuses on your TaxJar account, you [can link your TaxJar account](https://help.paycove.io/knowledge/taxjar-integration#connect-taxjar) so that the calculations consider your multiple nexuses.
**2) *To* address.** This address is derived from one of two sources: the deal's contact (i.e. person, customer) or the organization (i.e. business, company). [You may configure Paycove](https://paycove.io/tax-settings) to pull the address from either source:
We use the following fields to compile the address for the calculation:
- country
- postal / zip code
- state
- city
- street / line1
**3) Line Items and Product Categories.** Some items sold by your company may be taxed a different rate than others. To account for this, you may associate each product with a tax category [provided by TaxJar.](https://developers.taxjar.com/api/reference/#categories) To associate your product with a category, [navigate to the products](https://paycove.io/products) page and select the "Tax Category" from the dropdown.
### **European calculations**
You may also calculate taxes on invoices / quotes by comparing the *to* and *from* VAT numbers. The *from* VAT number is set in the [tax settings field.](https://paycove.io/tax-settings) The *to* VAT number may be set on each invoice or invoice. Either the Paycove user, or the end customer may enter their VAT number.
**Rules for European Taxes**
- If both *to* and *from* addresses contain a VAT number, apply these rules.
- If the *to* and *from* addresses both possess valid VAT numbers, and are from the same country, apply that country's standard tax rate, except for products denoted on the [products table](https://paycove.io/subs/products) as 0% (i.e. tax exempt).
- If either *to* or *from* addresses do not possess valid VAT numbers, or are not from the same country, do not apply taxes.
### Connecting your TaxJar account
If you have a TaxJar account, and would like Paycove to use this account for tax calculations, and recording taxable transactions, you may connect TaxJar to Paycove by providing your API token [on Paycove's integrations page.](https://paycove.io/manage-integrations)
[**Where do I find my TaxJar API token?**](https://support.taxjar.com/article/160-how-do-i-get-a-sales-tax-api-token)
Once you provide your TaxJar API token, you may record transactions from Paycove, as well as calculate taxes using your TaxJar nexuses.
### Recording Transactions in TaxJar
Similar to the tax calculations, you may also trigger a transaction record by [configuring transactions to automatically record](https://paycove.io/manage-integrations) after a charge is made.
Alternatively, you may manually record a transaction from the invoice's charge table.
- [Help Articles](https://help.paycove.io/knowledge/help-articles#main-content)
- [Getting Started and Integrations](https://help.paycove.io/knowledge/help-articles#getting-started-and-integrations)
- [Customizing Templates](https://help.paycove.io/knowledge/help-articles#customizing-templates)
- [Managing Quotes and Invoices](https://help.paycove.io/knowledge/help-articles#managing-quotes-and-invoices)
- [Products and Subscriptions](https://help.paycove.io/knowledge/help-articles#products-and-subscriptions)
- [Payments, Taxes, and Fees](https://help.paycove.io/knowledge/help-articles#payments-taxes-and-fees)
- [Account Settings](https://help.paycove.io/knowledge/help-articles#account-settings)
- [Other Help Articles](https://help.paycove.io/knowledge/help-articles#other-help-articles)
- [Frequently Asked Questions](https://help.paycove.io/knowledge/frequently-asked-questions#main-content)
- [Managing Quotes and Invoices](https://help.paycove.io/knowledge/frequently-asked-questions#managing-quotes-and-invoices)
- [Integrations](https://help.paycove.io/knowledge/frequently-asked-questions#integrations)
- [Payments](https://help.paycove.io/knowledge/frequently-asked-questions#payments)
- [Account Settings](https://help.paycove.io/knowledge/frequently-asked-questions#account-settings)
- [Pricing and Plans](https://help.paycove.io/knowledge/frequently-asked-questions#pricing-and-plans)
- [Other](https://help.paycove.io/knowledge/frequently-asked-questions#other)
[](https://www.paycove.io/)
[mailto:support@paycove.io](mailto:support@paycove.io)
Copyright © 2026, Paycove