HomeFAQSales Tax & Ecommerce TaxNexus & Compliance ObligationsIs sales tax based on shipping or billing address?

Is sales tax based on shipping or billing address?

Sales tax is based on the shipping address (the destination of the goods), not the billing address. This is because sales tax is a destination-based tax in most US states. Your ecommerce platform or tax tool geo-locates the shipping address and applies the correct state and local rates automatically.

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