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This article applies to:

  • Product: ONESOURCE Indirect Tax,ONESOURCE Sales and Use Tax Compliance
  • State: Colorado

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 1
     is 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 2
     is 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
  1. To download the Colorado Virtual Location template, go to
    Entities
    , and then
    Configure
    .
  2. To download the template, select
    4 - Locations
    , then
    Download Template
    ,
    CO Virtual Locations
    .
    note
    The menu with
    Download Template
     will 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 to
    StateAcctNum1
     for 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 are
    HOME RULE
     cities 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.
    note
    Exclude 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.