A frightening number of businesses use free sales tax calculators and ZIP codes to get sales tax rates for customer addresses.
For instance, if you need to know how much sales tax to charge a California customer, you might be inclined to take the ZIP code from their address and use a sales tax calculator or free rate table to find the rate. This method can give you inaccurate rates, landing you in trouble with customers and states. Using geolocation technology to find the right sales tax rate, on the other hand, now that’s a different story. Find out the difference between the two in the video below, then check out a free sales tax tool that uses geolocation: