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Create a custom rule to exclude online marketplace transactions

This article applies to:Avalara AvaTax Update

To get AvaTax Update to ignore tax calculations for online marketplaces, like Amazon, Etsy, and Ebay, that collect and pay taxes for you, you need to set up an advanced tax rule. Advanced tax rules let you automate the transactions as they come in so you don't have to adjust those transactions manually.

Before you begin

Add a location for each marketplace to your company profile if your business application doesn't send that information to AvaTax Update.

Steps

  1. In AvaTax Update, go to Settings > All AvaTax Settings.
  2. Next to Custom Rules, select Manage.
  3. Select the Advanced Rules tab and then select Add an Advanced Rule.
  4. Enter the information for the rule.
    1. Give the rule a name that helps you remember why you made it.
    2. Select Marketplace for the rule type.
    3. Select the date you want the rule to take effect.
    4. Under When, enter your Field and Value selections.
      1. Under Field, select ShiptoState.
      2. Under Value, enter the states where the marketplace collects and pays taxes for you.
    5. Under Then, select the name of the marketplace location you created from the dropdown.

      Example
      An example of advanced rule settings showing the Field section set to ShipToState, the Value section set to U.S. states, and the Then section set to a marketplace location.
  5. Select Save Advanced Transaction Rule.
    Tip icon

    If you're making rules for more than one online marketplace, click on Add Rule Set and repeat steps 4-5 for your other marketplaces before saving.

AvaTax Update is set up to exclude transactions where the online marketplace collects and pays tax for you. We recommend testing your settings before using them on live transactions.

See also

Test your setup

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