Skip to main content
Avalara Help Center

Add a marketplace location

This article applies to:AvaTax

Adding an online marketplace as a location in Avalara lets you view and sort transactions made for each marketplace. You need to add a marketplace location to your company profile if your company sells products through an online marketplace, such as Amazon, Etsy, or Ebay and:

  • Your business application doesn't send location information to Avalara. Adding an online marketplace as a location allows you to exclude those transactions from Managed Returns when a marketplace collects and pays for you.
  • You're using an extractor to sync one or more of your online marketplaces with our platform and you have marketplace locations that weren't added when you set up your extractor.

Before you begin

If you're using an extractor and you've already set it up, copy the correct location code to use when completing the steps on this page.

Steps

  1. In Avalara, go to Settings > Company Locations and Marketplaces.
  2. Select Add a Location.
  3. Enter a location code.
    • If you use an extractor to import the transactions, paste or enter the location code you copied before you began.
      • If you copied the code from a transaction from this location (same marketplace and state), you don't need to make any changes.
      • If you copied the code from a transaction from a different location (same marketplace but different state), change the state abbreviation in the code.

        Tip icon

        The location code follows the format MarketplaceName_DATASOURCE_StateAbbreviation_DataSourceID, where StateAbbreviation is the ship-to state.

    • If you do not use an extractor to import the transactions, create location code based on the name of the marketplace plus who collects and pays tax. 
      For example, if this is for Ebay and they collect and pay tax, enter Ebay-marketplace remits.
  4. Enter a friendly name for the location.
  5. Select Marketplace for the type and then select who collects and pays tax for transactions at this location.
    If you're not sure which option to select, look at the marketplace help documentation or call their customer service.
    • As the Seller, We Remit Tax on Sales - You collect and pay tax. This isn't common.
      If you use Managed Returns, select this if you want to track your marketplaces separately and your business application doesn't share location information with Avalara. Your company is responsible for collecting and paying taxes on transactions made through the marketplace.
    • Marketplace Remits Sales Tax - The marketplace collects and pays tax. This is the most common scenario.
      If you use Managed Returns, select this if you don't want Managed Returns to pay tax for transactions from this marketplace. The marketplace is responsible for collecting and paying taxes for your company for transactions made through the marketplace.

      A warning icon

      Even when the marketplace collects and pays tax, states with marketplace fairness laws may still require you to file a tax return and deduct the transactions.
  6. Select an effective date based on who collects and pays tax for transactions at this location.
    • If you collect and pay tax, select the date business activity started.
    • If the marketplace collects and pays tax, select the date the marketplace started collecting and paying tax for you. 
  7. Select Save this Location.
    The online marketplace is now set up as a location. Repeat these steps for each online marketplace your company uses.

    Tip icon

    If you're using an extractor, you can use the location code to find transactions for a specific location that were imported by the extractor or use only the data source ID to find transactions for all locations of the company.

If you have more than one location to set up, it might be easier for you to import locations in bulk rather than setting them up one at a time.

Next

If you don't use Extractor and the online marketplace collects and pays tax on your behalf, create a custom rule to exclude online marketplace transactions from AvaTax tax calculations.

  • Was this article helpful?