# Create a company

Source: https://developer.avalara.com/avatax-for-vat/tlg9469044532935/

# Create a company

Learn how to configure a company in AvaTax to support VAT calculation and reporting for your integration.

To use AvaTax, you must create and configure a company in your AvaTax account. The company configuration determines how VAT is calculated, reported, and applied across jurisdictions.

For this guide, configure a company in your Sandbox environment using a standard VAT setup for a business located outside the U.S.

Technology partners can use generic information to create a test company. API customers can use their actual company information.

At a high level, you must:

-   Define company information
-   Specify the jurisdictions where you report tax

## Define company information

Specify a company name and taxpayer ID. For testing purposes, technology partners can use generic information.

Ensure that the company has a valid address and is created in the appropriate environment ([Sandbox](https://sandbox.admin.avalara.com) for testing).

Specify a company name and taxpayer ID. This information isn’t verified, so technology partners can use a generic name and taxpayer ID for testing purposes.

For more details, see:

-   [Review your company details](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/ouf4209366267737.html)
-   [Create a company](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/phf1717580013416.html)

## VAT configurations

-   Disable the option indicating that the company’s primary business location is in the U.S.
-   Specify the country of primary location, for example, the UK.
-   Indicate that the company does business with the European Union, if applicable.
-   Provide VAT-specific identifiers, such as an IOSS registration number.

For technology partners and for testing purposes, use generic values.

## Specify the jurisdictions where you report tax

To run test transactions successfully, configure the [jurisdictions](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/Local_jurisdictions.html) where your company collects VAT/GST.

For the scenarios in this guide:

-   Add EU countries and Switzerland.
-   When prompted about U.S. tax registration, select No.

Review tax collection and establishment settings for each country:

-   Enable establishment only for required countries, such as:
-   Estonia
-   Germany
-   Switzerland
-   Disable establishment for other countries

On the **Where you collect tax** configuration:

-   Add VAT tax IDs for each applicable country.
-   Include the 2-digit country ISO code prefix, for example, DE123456789

Example countries for VAT registration include:

-   Estonia
-   Switzerland
-   Germany
-   France
-   Netherlands

## Activate the company

After completing the configuration:

-   Review company and tax settings.
-   Activate the company to begin using AvaTax.