Automatic Tax Collection

Make sure your business complies with local tax regulations by setting up automatic tax calculation. Wix offers automatic tax calculation through Avalara, a third-party app.

Avalara makes it possible to fine tune your tax collection when a subdivision, such as a county or city, has a tax rate that is different from the default rate.

Avalara makes sure your tax is calculated based on the latest tax rules, so you don’t have to update tax rates yourself. When there is a change in a tax rate, your site updates automatically. 

Each tax location (country, or state/province) has a default tax rate. In addition, particular products or services may be taxed at a lower or higher rate. If you sell items with different tax rates, you can account for it by creating tax groups.

Let's look at an example. Let's say that your location's default tax rate is 10%, but car seats are taxed at 0%. To collect the correct tax rate, you can create a custom tax group for car seats and add the relevant items to this group. Next, you add a code from Avalara's extensive database so they know what type of product is in this tax group. 

Avalara knows how this group of items in taxed is each location. 

Click any of the questions below to learn more about automatic tax calculations with Avalara.