United States Tax Code Lookup for Purchases
To calculate the consumer's use tax on purchase transactions automatically, you first need to check the Calculate Use Tax Automatically box.
If the Ship To state is not the same as the transaction nexus, we always apply the non-liable tax code. This is done to avoid inconsistencies between the taxes and the transaction nexus.
Sales and purchases tax determination lookup logic is based on ZIP+4 accuracy:
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Address contains ZIP+4 – the tax group is set according to valid ZIP+4.
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Address contains ZIP (not ZIP+4), city and state – tax group is set according to valid ZIP. If more than one tax group exists for the given zip, the group with the widest range is used.
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If no ZIP code is provided in the address used for the tax determination, the taxes are not calculated for this address.
If you leave the Location field empty or if the location record does not have an address, the tax engine will use the subsidiary Shipping Address as the Ship To address.