Addresses, GEO codes, and tax jurisdictions

Tax authorities have jurisdiction over sales tax in a specific area. The address's geographic area determines the tax jurisdiction and, as a result, the following:

  • The amount of tax to be paid
  • The tax authorities to which the tax is payable
Tax jurisdictions

The tax provider distinguishes different tax jurisdictions in the U.S. and in Canada.

U.S. sales-tax authorities

  • State: the tax authority with sales-tax jurisdiction in the state
  • County: the tax authority with sales-tax jurisdiction in the county
  • Local: the primary tax authority with sales-tax jurisdiction in the locality (for example, in the city)
  • Secondary County: the secondary tax authority with sales-tax jurisdiction in the county
  • Secondary Local: the secondary tax authority with sales-tax jurisdiction in the locality

Canadian sales-tax authorities

  • Goods and Services tax (GST)
  • Provincial Sales Tax (PST) or Quebec Sales Tax (QST)
Tax jurisdictions and GEO codes

The tax provider identifies the tax jurisdictions by means of GEO codes. The GEO codes are assigned to the addresses, based on the following address data:

  • City
  • State/province
  • ZIP/postal code

The tax provider also requires the address's Inside City Limits indication. The tax provider requires this data to be stored in the corresponding fields in the Addresses (tccom4130s000) session.

Vertex GEO code format

The tax provider uses a ten-digit GEO code. The GEO code consists of the following parts:

  • State code (two digits)
  • County code (three digits)
  • City (four digits)
  • Inside city limits indicator (one digit)

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