Does Avatax calculate using Zip + 4 or just Zip 5?
Overview
| I have a question from the head of our tax department about whether or not AvaTax utilizes full zip codes (5+4) or just the first segment. |
Environment
Avalara Avatax
Resolution
- The Avatax Engine will actually use the geolocation of the street address itself if the address is a valide address within the USPS database.
- This is what we call rooftop accuracy, as it literally drops a pin at that addressees geolocation and uses the rate of that exact pin.
- If the address cannot be validated our system will fall back to the Zip + 4 if that was given, and if that does not check out then the Zip 5 will be used.
Note: The system will be able to calculate using only a Zip5, but we recommend at least a City/State and Zip5, incase the zip code crosses state boundaries.