- Accurate sales tax determination historically requires knowing the precise street address of the customer
- Streamlined Sales Tax Governing Board attempts to simplify compliance for digital sellers
- Many digital sellers do not collect street addresses but only five-digit zip codes
- Zip codes are not sufficient to accurately determine local sales tax rates
- Sellers prioritize frictionless commerce and data security
- Collecting just the buyer’s five-digit zip code may satisfy requirements for both buyers and sellers
- Streamlined Sales Tax Governing Board was made aware of this challenge by Certified Service Providers
- Challenge of requiring street-level data for compliance with SST Member states’ regulations
Source: sovos.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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