Chapter 9 - Locations

Some companies with many different places of business within a state are required to participate in location-based reporting. In general, a small business will often not need to make use of location-based reporting, however, this feature becomes very critical for large businesses or franchised businesses with many retail locations.

Because this feature is required by many tax authorities for larger businesses, Avalara-certified connectors must support location-based reporting. Online storefronts and custom web shopping carts only need to implement location-based reporting if they have been requested to file location-based tax returns by a tax authority.

In this chapter, we’ll discuss Locations - which in AvaTax are a record of the physical presence of a company or its personnel. By the end of this chapter, you will learn the following:

  • What is location-based reporting
  • How to create and manage locations
  • Using location codes in transactions

Let’s begin by understanding location-based reporting.