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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Address contains city and state – the SuiteTax Engine automatically assigns the tax group based on the valid combination of city and state. If more than one group exists for the combination, the SuiteTax Engine uses the group with the lowest ID, according to an alphabetical order.
Note:In this case, the SuiteTax Engine determines only state, county, and city tax, but does not have enough information to determine district tax.
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Address contains only state – the SuiteTax Engine automatically assigns the tax group based on the state. If more than one group exists for the given state, the SuiteTax Engine uses the group with the lowest ID, according to an alphabetical order.
Note:In this case, the SuiteTax Engine determines only the state tax, but does not have enough information to calculate district, city, or county taxes.
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.