Taxamo is a global service for businesses selling digital goods and services and it can be used for individual regions/countries such as the US for sales tax. Taxamo has a comprehensive US sales tax solution that has its own reporting dashboard and configuration page.
For taxing US sales, Taxamo will calculate the tax rate using the evidence provided by the customer.
At its simplest, this evidence can be as little as a 5-digit ZIP code. However, since there can be multiple tax jurisdictions within a ZIP code, the more information provided will ensure a more accurate location determination and tax rate. A step up from the 5-digit ZIP code is to use ZIP + 4 and, for more precision, also provide the full street address.
In addition to location determination, Taxamo also has an address validation feature which will validate and standardize to USPS standard the address information that your customer provides. Please see Address Validation for more information.
Taxamo's detailed tax settlement report has the tax component Tax Authority name and ID, to find out more information about this see Detailed Settlement Report Fields.
For US transactions, the
product_tax_code is a required field for each line item as the product type may determine which taxes and tax rates apply. Please see Product Tax Codes.
If you are considering using Taxamo just for US sales tax you may want to consider future-proofing your integration. This would involve a minimum amount of additional development time and gives your business the ability to turn on more countries in the future by enabling them in the Taxamo dashboard.
Updated 9 days ago