Colorado virtual locations setup
The Wayfair decision dramatically changed how remote sales were to be reported across the country. Colorado requires all non-physical location sales to be reported the same way as physical location sales.
To set up virtual locations for Colorado, complete these steps.
STEP 1 – Register non-physical locations
To register non-physical locations, access your Colorado Revenue Online account and follow the instructions for registering non-physical locations.
There are 2 options when registering non-physical locations:
- Option 1is to only set up the non-physical locations where sales have occurred in previous periods. The issue with this option is it's possible to sell into a jurisdiction that's new during the current period. If this occurs, the new location will need to be registered and the virtual location added to the location register before processing returns. This option could require setups to be done each month. If the entity’s transactions are primarily e-commerce transactions, this option may not be the correct option.
- Option 2is to register all non-physical locations. The advantage of choosing to register all at one time is that the setup is done once. The only time additional setup would be required is when the state adds new reporting codes, which isn't often. This option's best when the entity has a large number of e-commerce transactions.
Step 2 – Download the Colorado Virtual location template
- To download the Colorado Virtual Location template, go toEntities, and thenConfigure.
- To download the template, select4 - Locations, thenDownload Template,CO Virtual Locations.noteThe menu withDownload Templatewill only display if a location exists for the entity. If no locations exist, create a dummy location so the menu will display.
STEP 3 – Populate the template
There are multiple columns in the spreadsheet that need to be populated with data before importing.
- Column C- Add the state assigned site ID toStateAcctNum1for any registered reporting locations. The state will assign a 12-digit site ID when registering a non-physical location. The site ID must be 12 digits, so if the account number begins with a zero, be sure to include the leading zero in Column C.
- Column M- If there areHOME RULEcities that aren't registered and you don't want the system to allocate any tax, enter X in column M (ExcludeCity). To calculate and allocate tax to all levels, leave this column blank.noteExclude city tax isn't an option for any state administered cities. This only applies to HOME RULE cities.
- Columns W-Y– Use these columns to define the virtual rules. For Colorado, rules need to be defined for at least Sellers Use and Sales. The template's already populated with the rule values for both Sellers Use and Sales in Columns W and X. As many as 3 tax type rules can be set up. For example, if Clothing Sellers Use transactions exist, enter “CLO104-GEN101” (Clothing Sellers Use rule) in Column Y to define the rule.
Once the data is entered, it is suggested that the template be saved as an Excel spreadsheet so there is a copy of the data as originally populated.
Before importing, review the CSV file and remove any rows that do not have a value in Column B. It is recommended not to import the location unless the Site ID is populated.
HOME RULE Cities
:Cities | Cities | Cities | Cities |
|---|---|---|---|
Arvada | Aspen | Aurora | Avon |
Black Hawk | Boulder | Breckenridge | Brighton |
Broomfield | Carbondale | Castle Pines | Castle Rock |
Centennial | Central City | Cherry Hills Village | Colorado Springs |
Commerce City | Cortez | Craig | Crested Butte |
Dacano | Delta | Denver | Durango |
Edgewater | Englewood | Evans | Federal Heights |
Fort Collins | Frisco | Glendale | Glenwood Springs |
Golden | Grand Junction | Greeley | Greenwood Village |
Gunnison | Gypsum | Lafayette | La Junta |
Lakewood | Lamar | Larkspur | Littleton |
Lone Tree | Longmont | Louisville | Loveland |
Montrose | Mount Crested Butte | Mountain Village | Northglenn |
Parker | Pueblo | Ridgway | Rifle |
Sheridan | Silverthorne | Snowmass Village | Steamboat Springs |
Sterling | Telluride | Thornton | Timnath |
Vail | Westminster | Wheat Ridge | Windsor |
Winter Park | Woodland Park | N/A | N/A |
STEP 4 – Import the template into Entity Business Locations
To import the location template, go to Entity configuration (see Step 2 for accessing Entity configuration). Once you are in the configuration, click the
4 - Locations
tab, then click Import
to open the Import dialog. Browse and select the template that was just populated.Browse and select the CSV file that was just populated.
Click the
2 – Template
tab and select "CO LOCATIONS (SYSTEM TEMPLATE)
".Click the
4 – Options
tab and select Tax Area Codes
as the Tax Area Determination
and then click the IMPORT
button. Once the import is complete, click the BACK
arrow to return to the location register and the locations will now display.STEP 5 – Duplicate reporting codes
There are a few duplicate reporting codes in ONESOURCE that need to be modified for reporting purposes. The state of Colorado does not allow more than one non-physical location to be reported, so when duplicate codes exist, the reporting code must be combined. Most of the duplicate locations in ONESOURCE are due to geography that identifies the PIF tax areas. While ONESOURCE does not currently support the PIF functionality, the geography is being added so that can be accomplished.
If duplicate reporting codes exist, the duplicate location must be set to report with the first location. That is done by changing the reporting location on the duplicate tax areas.
The list below shows the duplicate reporting codes and the Reporting Code that it should be assigned.
Duplicate | Assign to Reporting Code |
|---|---|
02-0043 | 1000025121 | 02-0043 | 1000002466 |
03-0043 | 1000025119 | 03-0043 | 1000002557 |
03-0043 | 1000025664 | 03-0043 | 1000002557 |
04-0017 | 1000028942 | 04-0017 | 1000002797 |
04-0017 | 1000028943 | 04-0017 | 1000002797 |
04-0017 | 1000028946 | 04-0017 | 1000002797 |
04-0057 | 1000027854 | 04-0057 | 1000002801 |
04-0099 | 1000028957 | 04-0099 | 1000028083 |
06-0049 | 1000025122 | 06-0049 | 1000002947 |
06-0049 | 1000029009 | 06-0049 | 1000002947 |
06-0049 | 1000029010 | 06-0049 | 1000002947 |
06-0086 | 1000027518 | 06-0086 | 1000002946 |
07-0040 | 1000028958 | 07-0040 | 1000002665 |
08-0018 | 1000028947 | 08-0018 | 1000002997 |
10-0001 | 1000028944 | 10-0001 | 1000002618 |
10-0001 | 1000029003 | 10-0001 | 1000002618 |
10-0020 | 1000025146 | 10-0020 | 1000002630 |
10-0206 | 1000028955 | 10-0206 | 1000002617 |
11-0004 | 1000025118 | 11-0004 | 1000002888 |
11-0004 | 1000028956 | 11-0004 | 1000002888 |
11-0058 | 1000026664 | 11-0058 | 1000002892 |
11-0059 | 1000025115 | 11-0059 | 1000002894 |
11-0059 | 1000025116 | 11-0059 | 1000002894 |
11-0059 | 1000025117 | 11-0059 | 1000002894 |
11-0059 | 1000028924 | 11-0059 | 1000002894 |
11-0059 | 1000028925 | 11-0059 | 1000002894 |
11-0059 | 1000028926 | 11-0059 | 1000002894 |
11-0059 | 1000028927 | 11-0059 | 1000002894 |
12-0008 | 1000025120 | 12-0008 | 1000002604 |
12-0044 | 1000028416 | 12-0044 | 1000002608 |
24-0016 | 1000025123 | 24-0016 | 1000002823 |
44-0003 | 1000029041 | 44-0003 | 1000002766 |
47-0002 | 1000028945 | 47-0002 | 1000002750 |
47-0031 | 1000028851 | 47-0031 | 1000002755 |
To change the duplicate location to the correct
Reporting Location
, select the location that needs to be changed and click EDIT
(pencil icon). For this example, Location Code 02-0043 | 1000025121 will be changed to report with Location Code 02-0043 | 1000002466.
Open the drop-down menu for
Reporting Location
.Change the
Reporting Location
to the correct reporting location according to the table provided (in this case to 02-0043 | 1000002466) and then click CLOSE
.When the dialog closes, the
Reporting Location
will now show the Reporting Code that was just selected.Next check the box "
Suppress Force Zero Location
" and then click SAVE CHANGES
.Select "
ALL Periods
" and click SAVE
to complete the edit.Repeat this process for all locations in the table provided above.
STEP 6 – Adding new virtual locations to existing location register
When a new Reporting Code is added by the state of Colorado, the new reporting code will need to be added to existing virtual locations. To add a new reporting code, download the virtual location template (Step 2) and then delete all records from the template except the row for the new location(s). Once the desired rows are in the CSV file, repeat Step 3 and Step 4 to import the new virtual location template.