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Avalara Help Center

How does an incomplete address effect a tax calculation?

Overview

If an incomplete address (eg. only city, state, and zip) is sent to AvaTax for calculation, what happens to the accuracy of the tax result?

Environment

Avatax AvaTax

Resolution

  • In some instances, an ERP or Cart system will only pass an incomplete address (eg. only city, state, and zip) to Avatax for calculation.  
    • When this occurs, the tax calculation can sometimes be incorrect.
    • This is because, when a tax calculation is made, the engine will look first for a full street address for an accurate calculation.  Without a full street address the engine will attempt to do the calculation based on the Zip+4 or finally ZIP.  
  • For the most accurate calculation possible, please provide a full street address when invoicing.
    • If the full address is unavailable, then city, state and ZIP+4 will provide nearly as accurate a result.  
    • 5-digit ZIP will provide the least accurate calculation of the 3 options.  

***State, Zip, and Country are the bare minimum needed to calculate tax. Any less and there is no tax calculation*** 

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