I’m curious if anyone else has experience with a similar requirement/issue with Avalara: • The company I work for is essentially a staffing marketplace platform, matching companies with individual workers. • We have very specific language in place that, according to our tax consultants (from one of the Big 4 firms), prevents us from needing to charge tax on the amount that’s being paid to the workers, which is just a passthrough. So we only consider our fees on top of the worker’s pay to be taxable. • We’ve set up Avalara correctly so that only the fees are generating non-zero tax rates/amounts, but all items (including worker pay) are included on tax return reporting. • According to our accountants and consultants, we only want to show net sales (not including the passthrough pay totals) instead of gross sales. • According to Avalara, the connection with NetSuite is all-or-nothing and you can’t prevent certain items from going into Avalara without separating them onto a separate transaction. I’m strictly an admin/developer, so I’m trusting that our accountants and consultants are defining the correct requirements. Does anyone happen to have any experience with something like this, where you didn’t need to separate the items into separate transactions in order to have Avalara’s tax returns only present a subset of items?

Tax laws vary in every state, so I think Avalara's stance is that everything is reported, some as taxable and some non-taxable, but all sales should be documented/reported for them to cover any legal issues.

@Matt Poloni - if you only want to show net sales you need to create a report for that. Since you passthrough your workers and your accountants determined you only have to report your income at net level you should be good