# Marketplace facilitator transactions

Source: https://developer.avalara.com/transaction-reconciliation/ujq3530266231050/

# Marketplace facilitator transactions

Describes discrepancies that occur when tax collection responsibility is shared between a marketplace and the selling entity and how reporting is aligned to the responsible party.

Marketplace facilitator transactions create reconciliation discrepancies when tax collection responsibility is divided between a marketplace and the selling entity. Reconciliation evaluates these scenarios to ensure tax is reported only by the responsible party.

## Duplicate tax collection

When a marketplace collects tax on a transaction that is also transmitted to AvaTax:

-   **Risk**: Tax is collected or reported twice for the same transaction.

-   **Resolution**: Void the AvaTax transaction or designate it as marketplace-collected based on reporting requirements.

## Marketplace nexus confusion

When a transaction is taxed under the seller’s account but the marketplace holds collection responsibility in that jurisdiction:

-   **Risk**: Tax is reported under the incorrect nexus profile.

-   **Resolution**: Review marketplace facilitator settings by state and apply the appropriate exemption or configuration.

## Mixed channel order

When an order is fulfilled partially by a marketplace and partially through direct sales channels:

-   **Risk**: Marketplace-fulfilled items are taxed incorrectly.

-   **Resolution**: Split the transaction appropriately and apply tax only to the direct-fulfilled portion.