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 AvaTax Update, 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 transactions from AvaTax Update's calculations when a marketplace collects and pays for you.
- In AvaTax Update, go to Settings > Company Locations and Marketplaces.
- Click Add a Location.
- Enter the marketplace details.
- Enter the name of the marketplace under Location Code.
- Select Marketplace under Type.
- Under Category, select Seller Remits Tax or Marketplace Remits Tax based on how the marketplace handles sales tax.
If you're not sure which to select, look at the marketplace's help documentation or call their customer service.
- Seller Remits Tax
Your company is responsible for collecting and paying taxes on transactions made through the marketplace. Select this option if you want to track your marketplaces separately and your business application doesn't share location information with AvaTax Update.
- Marketplace Remits Tax
The marketplace is responsible for collecting and paying taxes for your company for transactions made through the marketplace. Select this option if you don't want AvaTax Update to calculate tax for transactions from this marketplace.
- Seller Remits Tax
- Enter your company's primary business address under Address.
- Enter an effective date for when you want transactions to start being calculated for this marketplace.
- Click Save This Location.
The online marketplace is now set up as a location. Repeat these steps for each online marketplace your company uses. If the online marketplace collects and pays tax on your behalf, you'll need to set up a custom rule for those transactions to exclude them from AvaTax Update's calculations.