Some states require online marketplaces such as Amazon, Etsy, and Ebay, to collect sales tax for you, while other states require your company to do the collection and payment work. If the marketplace you sell through collects and pays tax for you, set up a special rule so that tax isn't reported twice on those transactions.
Tax is included on transactions even if the marketplace is collecting and paying tax on your behalf, because in some jurisdictions you still need to report that tax even if you aren't the one paying it.
|If you're using an Extractor to sync one or more of your online marketplaces with our platform, you don't need to follow these steps. Extractor adds each marketplace to Avalara when you set it up, and assigns the correct location codes to the transactions you import with your extractor.|
Follow these steps to track and correctly tax all of your transactions from online marketplaces.
- Add a marketplace location
Create a location for each marketplace your company uses if your business application doesn't share that information with AvaTax.
- Create a custom rule to exclude marketplace transactions
Create rules that apply to transactions made through online marketplaces that collect and pay tax on your behalf.
- Import transactions
If you you're not using an extractor or connector, use our template to import your transaction data to AvaTax.