Avocado Charges All Combined Taxes as Required by Law

In June 2018, in a landmark decision, the U.S. Supreme Court overturned an earlier precedent, ruling that states can collect sales taxes from online retailers. As a result, we are legally required to charge sales tax in states where we have met or exceeded a threshold set by the state; have a physical presence (called a "nexus"); or operate in states where certain business activities (such as personnel, inventory, affiliate, drop-shipping relationship, etc.) also create a sales tax nexus. Once a nexus is reached within a jurisdiction, sales tax is legally required to be collected.

Sales tax is complex. With economic nexus determination and accurate street-address calculations, TaxJar ensures we collect the right rate on every product in more than 14,000 taxing jurisdictions. More than 20,000 businesses, from Microsoft to Coca-Cola, rely on TaxJar to calculate sales tax in real-time. We do not calculate the applicable sales tax jurisdictions or rates ourselves.

Regarding destination-based eCommerce transactions, the location where any customer takes possession of a product is considered the point of sale. As a result, taxes are calculated based on the shipping address, not the billing address. You can read this TaxJar blog article if you'd like more information.

Your Combined Sales Tax Rate is simply the sum of all applicable taxes. You can look up the Combined Sales Tax Rate of your shipping address using TaxJar's online sales tax calculator.