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export const metadata = {
  title: `Tax Module Provider`,
}

# {metadata.title}

In this guide, you’ll learn about the Tax Module Provider and how it's used.

<Note title="Looking for no-code docs?">

Refer to this [Medusa Admin User Guide](!user-guide!/settings/tax-regions) to learn how to manage tax provider of a tax region using the dashboard.

</Note>

## What is a Tax Module Provider?

The Tax Module Provider handles tax line calculations in the Medusa application. It integrates third-party tax services, such as TaxJar, or implements custom tax calculation logic.

The Medusa application uses the Tax Module Provider whenever it needs to calculate tax lines for a cart or order, or when you [calculate the tax lines using the Tax Module's service](../tax-calculation-with-provider/page.mdx).

![Diagram showcasing the communication between Medusa the Tax Module Provider, and the third-party tax provider.](https://res.cloudinary.com/dza7lstvk/image/upload/v1746790996/Medusa%20Resources/tax-provider-service_kcgpne.jpg)

### Default Tax Provider

The Tax Module provides a `system` tax provider that acts as a placeholder tax provider. It performs basic tax calculation, as you can see in the [Create Tax Module Provider](/references/tax/provider#gettaxlines) guide.

This provider is installed by default in your application and you can use it with tax regions.

<Note title="Tip">

The identifier of the system tax provider is `tp_system`.

</Note>

### Other Tax Providers

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---

## How to Create a Custom Tax Provider?

A Tax Module Provider is a module whose service implements the `ITaxProvider` imported from `@medusajs/framework/types`.

The module can have multiple tax provider services, where each are registered as separate tax providers.

Refer to the [Create Tax Module Provider](/references/tax/provider) guide to learn how to create a Tax Module Provider.

After you create a tax provider, you can choose it as the default Tax Module Provider for a region in the [Medusa Admin dashboard](!user-guide!/settings/tax-regions).

---

## How are Tax Providers Registered?

### Configure Tax Module's Providers

The Tax Module accepts a `providers` option that allows you to configure the providers registered in your application.

Learn more about this option in the [Module Options](../module-options/page.mdx) guide.

### Registration on Application Start

When the Medusa application starts, it registers the Tax Module Providers defined in the `providers` option of the Tax Module.

For each Tax Module Provider, the Medusa application finds all tax provider services defined in them to register.

### TaxProvider Data Model

A registered tax provider is represented by the [TaxProvider data model](/references/tax/models/TaxProvider) in the Medusa application.

This data model is used to reference a service in the Tax Module Provider and determine whether it's installed in the application.

![Diagram showcasing the TaxProvider data model](https://res.cloudinary.com/dza7lstvk/image/upload/v1746791254/Medusa%20Resources/tax-provider-model_r6ktjw.jpg)

The `TaxProvider` data model has the following properties:

- `id`: The unique identifier of the tax provider. The ID's format is `tp_{identifier}_{id}`, where:
    - `identifier` is the value of the `identifier` property in the Tax Module Provider's service.
    - `id` is the value of the `id` property of the Tax Module Provider in `medusa-config.ts`.
- `is_enabled`: A boolean indicating whether the tax provider is enabled.

### How to Remove a Tax Provider?

You can remove a registered tax provider from the Medusa application by removing it from the `providers` option in the Tax Module's configuration.

Then, the next time the Medusa application starts, it will set the `is_enabled` property of the `TaxProvider`'s record to `false`. This allows you to re-enable the tax provider later if needed by adding it back to the `providers` option.
