thread Re: Why is sales tax not based on the entered zip code alone? in Online Store

Why is sales tax not based on the entered zip code alone?

ChocoRee — Sun, 04 Feb 2024 22:35:03 GMT

I came across an error with a recent online order. Shouldn't Square catch when an address is incorrect- city/state do not match the zip code? This error lead to an incorrect sales tax charged to a customer.

I'm a small business and currently only charge sales tax for purchases within my state (CT). I found a glitch where I had a customer place an order to be delivered to another state (TX). In her order, however, she accidentally entered "CT" instead of "TX" but with a TX address, city, and zip code. She called to correct the state, but then I realized later my sales tax was not aligning. Square charged her for the TX sales tax rate. I am assuming this was because she had entered "CT" that kicked the sales tax calculation on. But I find it strange the rate was then based on the other state's zip code. Shouldn't the mismatched info been caught by Square when the order was being placed?

Re: Why is sales tax not based on the entered zip code alone?

Summer2024 — Mon, 05 Feb 2024 14:30:47 GMT

Hi there, @ChocoRee 👋

I am seeing when I try to place an order, that if I type my address in and change only the state to CT, it charges the CT sales tax.

I am going to reach out to our ecommerce team to see if this is expected behavior and bring it to their attention.

Thanks for catching this!

Re: Why is sales tax not based on the entered zip code alone?

Summer2024 — Mon, 05 Feb 2024 16:17:45 GMT

Hey, @ChocoRee!

This is definitely NOT expected behavior and our ecommerce team has notified the engineers of this issue. Thank you so much for bringing this to our attention! I am going to reach out to you via direct message to provide you with a case number regarding this!

Re: Why is sales tax not based on the entered zip code alone?

ChocoRee — Mon, 05 Feb 2024 19:00:27 GMT

Thanks so much!