Destination-based sourcing
Updated
Definition
A sales tax sourcing rule where tax is calculated based on the buyer's delivery address. Most US states use destination sourcing for remote sales.
Related terms
- Origin-based sourcing— A sales tax sourcing rule where tax is calculated based on the seller's location. A minori…
Where this applies
- See What is sales tax nexus for the pillar explanation of how nexus works.
- Try the nexus calculator to check your exposure.
- Browse the full glossary for other key terms.