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Avalara Help Center

Add a marketplace location

This article applies to:AvaTax

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, you'll need to add it to your company profile as a location. Adding an online marketplace as a location lets you view and sort transactions made for each marketplace and allows you to exclude those transactions from Managed Returns when a marketplace collects and pays for you.

Tip icon

If you're using Extractor to sync one or more of your online marketplaces with our platform, you don't need to follow these steps. Use the information for your marketplace to add a new marketplace location to an extractor.

Steps

  1. In Avalara, go to Settings > Company Locations and Marketplaces.
  2. Select Add a Location.
  3. Enter a location code based on the name of the marketplace plus who collects and pays tax. 
    For example, if this is for Amazon and they collect and pay tax, enter Amazon-marketplace remits.
  4. 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.
      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.
      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.
  5. 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. 
  6. Select Save this Location.
    The online marketplace is now set up as a location. Repeat these steps for each online marketplace your company uses.

Import marketplace locations in bulk

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.

  1. In Avalara, go to Settings > Company Locations and Marketplaces.
  2. Select Import Locations.
  3. Fill out the Import Locations template.
    • Enter 3 in the AddressTypeId column to indicate that the row is creating a marketplace rather than a physical location
    • If the you're collecting and paying tax on marketplace sales, enter 6 in the AddressCategoryId column.
    • If the marketplace is collecting and paying tax for you, enter 7 in the AddressCategoryId column.
  4. On the Import Locations page in Avalara, drag and drop the import template file to the area in the center of the page.
    You can click Browse Instead and select the file from your computer if you prefer.
  5. Wait for the import to complete. How long this takes depends on the size of the import template file.
    Your new locations are now in Avalara.

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.

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