Customer Location Determination enables tax calculation for digital goods, where the buyer’s location determines taxability, rather than the ship-from and ship-to addresses used for physical goods. The service collects location-based evidence and makes a compliant determination of the tax jurisdiction.

Key capabilities include:

• Flexible collection of location evidence
• Configurable location evidence hierarchy
• Location evidence for reporting and auditing

Flexible collection of location evidence

The service supports up to six types of location evidence, helping businesses meet regulatory requirements. The service supports the following location evidence types:

• Buyer tax identification number
• Bank identification number (BIN)
• IP address
• Billing address
• Buyer self-declaration
• Other commercially relevant evidence

Configurable location evidence hierarchy

Configure the priority order for each type of location evidence to control how the service resolves conflicts. During tax determination, the service applies this hierarchy to determine the tax jurisdiction.

Location evidence for reporting and auditing

The service stores all collected location evidence for each transaction and makes it available for tax reporting and auditing. This reporting can help businesses demonstrate compliance with Customer Location Determination requirements during audits or regulatory reviews.

Supported countries and regions

For more information, see Supported Countries and Regions.