Should I charge sales tax based on my customer's billing address or shipping address?

I'm shipping physical products to my customers, which address should I use to add the sales taxes to their order?

To our understanding, your customer's shipping address should be used to calculate sales taxes and we explain more in this blog post. Please note that this just applies to orders shipped to destination-based sales tax states.

  • For origin-based sales tax states, you'll still use your customer's shipping address to determine which state's sales tax applies to the order but the sales tax rate should be based on your location within that state (if you have one.)

I sell software or other digital goods, which address should I use to charge sales taxes on my customer's orders?

If your products are digital goods or Software as a Service (SaaS), consider using your customer's billing address and we explain more in the "To Address" section of this Integration Guide. 

If you have more questions about charging sales tax rates for your digital good or SaaS products (or, for a more definitive answer), we'd recommend consulting with a CPA or your state's Department of Revenue (DOR.)

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