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Origin vs. Destination Sales Tax: A Guide for Small Business

Although origin-based sourcing is easier for businesses to administer because they only have to keep track of the rates where they are based, most states use destination sourcing, which requires you to figure out the correct sales tax rate for any location where you are selling and have nexus.

One way of keeping up keeping up with sales tax changes, large or small, is sales tax automation. Automation with Avalara AvaTax can be a big boon for small businesses. AvaTax is constantly updated with the latest rates and tax calculations are 100% guaranteed accurate, whether the sales tax is origin- or destination-based.

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