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How do I create a location code in AvaTax Update for a new state where Amazon is remitting tax as the marketplace facilitator?

A state Department of Revenue has updated requirements related to marketplace sellers. You need to add a marketplace location so Amazon transactions you sync with AvaTax from that state are identified as deductions for your returns. The new location retroactively applies to older transactions from this state that have the location code on them.

Find more information and context after the set up steps.

Set up a marketplace location

  1. In AvaTax, go to Transactions > Transactions, find a marketplace transaction from the state you’re setting up, and copy its location code.
    If you don't see the Location Code column, select Customize Columns, and then select Location Code.
  2. Go to Settings > Company Locations and Marketplaces.
  3. Select Add a Location. 
  4. Paste or enter the location code you copied in step 1.
  5. Select Marketplace for the type and then select who remits taxes.
  6. Enter your primary business address.
  7. Select the date business activity started. This is usually the date you started remitting tax. 
  8. Select Save This Location.  

What is a location code?

Location codes help you report how you generated a sale, whether via a storefront, a salesperson, a marketplace, or some other channel. Every imported transaction includes a location code. 

Why do I need to add the location code?

Even though the marketplace remits the tax, states with marketplace fairness laws require sellers to file a tax return and deduct the transactions. For this reason, all transactions imported by syncing with AvaTax are tagged with a specific location code.

How do I find transactions in a specific marketplace?

Use location codes to find transactions for a specific marketplace that were imported by syncing with AvaTax.  

  1. In AvaTax, go to Transactions > Transactions.
  2. Select Filters and then select Filter by Location Code.
  3. In Location, begin entering part of the marketplace name or location code, select the correct marketplace from the list that appears, and then select Apply.