Note: Find the equivalent version of this article for Admin Console here.
A state Department of Revenue has updated requirements related to marketplace sellers. You need to add a marketplace location code marked as “Marketplace Remits Tax”, so extracted Amazon transactions from that state are identified as deductions for your Returns. To provide context, we have included "What is a location code?", "Why do I need to add the location code?", and "How do I find extractor transactions in AvaTax Update?" at the bottom of this article.
Set up a marketplace location
Because Amazon has identified a new state where it will remit tax for their sellers, you’ll need to create a new location that reflects this change. The new location retroactively applies to older transactions from this state as long as that location code is listed on the transaction.
- In AvaTax Update, click Transactions and find a marketplace transaction from the state. Copy its location code.
- Select Settings. Then select Manage my locations.
- Click Add a location.
- Paste or type the location code you copied in step one.
- The location code begins "AMAZON_DATASOURCE_" make sure to include the exact code listed on your transaction with the state abbreviation and the numbers at the end.
- For the location Type, select Marketplace.
- For the location Category, select Marketplace remits tax.
- In the Address section, enter your primary business address.
- For Start Date, enter the date Amazon began remitting tax.
- Click Save this location.
What is a location code?
Every transaction from an Extractor includes 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.
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 extractor transactions in AvaTax are tagged with a specific location code. By setting up that location code marked as “Marketplace Remits Tax”, those transactions are identified as deductions for your Returns.
How do I find extractor transactions in AvaTax Update?
Use filters to find extractor transactions.
- Log in to AvaTax and click Transactions.
- Click Filters and select Amazon. Click Apply.
- You’ll see all the extractor’s transactions, which have a unique value applied to their location and document codes. Click a transaction to see its location information.