Wix Bookings: Setting Up Tax

2 min read
Set up tax collection to make sure you're in compliance with local tax regulations. Clients see the tax details during checkout. 
In this article, learn more about:

How to start setting up tax for your business

Before you begin setting up taxes, it's a good idea to understand the rules that apply to your business. This way, you'll avoid charging customers extra taxes or not collecting them when you need to.
  • Different tax rules apply in different regions. Consult with an accountant or your local tax authority for specific information relevant to your business.  
  • In order for clients to see the correct tax details during checkout:
    • Set up tax for your location(s). 
    • Select the correct business address from the Business Info drop-down. If you type the address but don't click to select it, it may not save, and the correct tax rates may not appear. 

Tax calculation using the manual method

Wix offers two methods of tax collection. You can set tax rates yourself using the manual or automate tax collection using Avalara.
Using the manual method, you select the location or locations where you want to select tax (e.g. California) and then manually enter the tax rate (e.g. 7.25% for California). If the rate changes, it's up to you to update it. 

Automatic tax calculation

Wix also offers automatic tax calculation through Avalara. You only need to select the location(s) where you want to collect tax and Avalara adds the right rate. When rates change, your tax updates automatically. 
By default, if you use Wix Bookings, all your services are part of the services tax group. This group is set to collect the default sales tax (VAT) rate for services in each location. Learn more about assigning codes to your tax groups

Screenshot of the services tax group with its Avalara code
Learn more about automatic tax collection.

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