About Automatic Tax Collection
3 min read
Make sure your business is always compliant with local tax regulations by setting up automatic tax calculation. Wix provides the convenience of automatic tax through Avalara, a third-party app.
You are solely liable at all times for confirming that your tax calculation conforms to all applicable laws and regulations. We recommend getting advice from a professional to help you understand what's required and meet all your obligations.
Tax correctly in different locations
If your business is required to collect tax in more than one location - whether across different countries or within various states of a country - it's important to collect taxes accurately. Avalara simplifies this process by automatically collecting taxes correctly in each location you add. This includes situations where different tax rates apply within smaller subdivisions, such as counties or cities.
Keep up with tax changes
Avalara makes sure your tax is calculated based on the latest tax rules, so you don’t have to update tax rates yourself. When a tax rate changes, your website automatically adjusts to reflect the updated rate.
Tax items at the required rate
Each tax location (a country or state/province) has a default tax rate. In some locations, you may also need to collect tax on digital products, shipping charges, or gift cards.
When you set up Avalara, you'll see tax groups listed, each with its own Avalara tax code.
All these items are automatically added to the appropriate tax group. Avalara is now ready to manage tax correctly for all these items in all your locations.
Manage items taxed at special rates
Tax groups are not currently available for Wix Bookings services.
A location may tax specific items at a lower or higher rate. For example, in certain places, children's car seats may be tax exempt or liquor may be taxed at a higher rate.
To account for this, you can create a custom tax group and add the appropriate items to that group. After setup, customers from different locations and who purchase different items are taxed at the appropriate rate.
Click a question below to learn more about managing tax automatically with Avalara.
I already have an Avalara account. Can I connect to it?
Do I need to upgrade my Premium plan to use Avalara?
Is Avalara available worldwide?
Can I manage some regions with automatic tax and others with manual?
I previously set up tax in a merchant account. Should I remove it?
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