Tax Code Lookup Logic for United States
For each sales or purchase transaction, the SuiteTax Engine determines what tax code and rate to use for each item and calculates the tax amounts.
The SuiteTax Engine makes use of SuiteTax nexus lookup logic by automatically determining nexuses for every transaction. For more information, see Nexus Determination Lookup Logic in SuiteTax.
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.