Taxing jurisdictions, Geo Codes, and location codes

An address usually belongs to several taxing jurisdictions: a country, a state or province, a county, a city, and a district jurisdiction. In Global Tax Determination, a Geo Code represents a unique combination of these jurisdictions. As location is one of the defining factors of tax determination, Geo Codes play a key role in assigning the correct tax rate.

Taxing jurisdiction limits are not always the same as county or city limits, so it is important to provide complete addresses with street numbers and ZIP codes that include the four-digit extensions. To ensure accurate addresses, we recommend using an address quality tool. If an address is inaccurate or incomplete, it may result in an inaccurate tax calculation.

Location codes are codes you create for both your organization and your customers or vendors. You can assign location codes to specific addresses to save time during the tax calculation process, as you can enter the location code instead of typing the full street address. You also have the option to link a location code to the Geo Code assigned to that address.

Geo Code structure

Geo Codes list taxing jurisdictions in order from broadest to narrowest.

Not all jurisdictions have tax rates. If a location (state, county, city, or district) has no tax, Global Tax Determination leaves that field blank. In the following example, Geo Code 6276 has no county tax:

Selecting Geo Codes

When you enter an address, you can either select a Geo Code or let Global Tax Determination select the Geo Code for you:

• If you enter the address and click Get Geo Codes, Global Tax Determination will give you a list of codes that map to the address you entered. You can then select which Geo Code you want Global Tax Determination to use when calculating tax.

• If you enter the address and do not click Get Geo Codes, Global Tax Determination will use the most appropriate Geo Code when calculating tax.

What if I disagree with the tax rate in Global Tax Determination?

If the tax rate provided by Global Tax Determination is not what you were expecting, use the Tax Calculator to make sure that the Geo Code's associated jurisdictions are correct.