Avalara Tax Resources

Getting sales tax right in the blink of an eye

While a customer is standing at the checkout counter or sitting at their computer wrapping up their shopping card, the seller has to calculate salest ax. To get it right, there's a lot that needs to be figured out-and customers are in no mood to wait.

  1. Address validation - Consider there are ~153 million mailing addresses in the United States organized into ~43,000 ZIP codes that fall into more than 12,000 taxing jurisdictions.
  2. Tax sourcing - Should sales tax be determined based on where the goods are shipped from or shipped to? This varies by state.
  3. Determine additional tax types - Do other industry-specific or excise taxes apply?
  4. Taxibility - Is the product taxible? This often varies by state or tax jurisdiction.
  5. Determine exemption status - Is your customer exempt from sales tax? This commonly applies to non-profits and resellers.
  6. Determine tax holiday - Somes states hold annual sales tax holidays the taxibility of this product may be affected by.

Once all the above calculations have been applied, and the proper tax rate has been determined, the seller applies the correct rate and the sale is completed. And it all has to happen in less than a second!

While a customer is standing at the checkout counter or sitting at their computer wrapping up their shopping cart, the seller has to calculate sales tax. To get it right, there's a lot that needs to be figured out and customers are in no mood to wait. Contact us at 877-780-4848.