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    5. Wix Stores: Setting Up Automatic Tax Calculation with Avalara

Wix Stores: Setting Up Automatic Tax Calculation with Avalara

5 min read
Important:
Wix is in the process of rolling out new tax settings. To learn if you have the new settings and to access articles on how to set it up, click here.
Simplify tax collection and filing by letting Avalara do the hard work for you. Wix works with a third-party software, Avalara, to provide automated tax. 
Avalara provides you with tax rates in real-time for transactions across the US, the EU, and around the world. Avalara makes sure your tax is calculated based on up-to-date tax rules, so you don’t have to calculate your store's taxes yourself.
In this article, learn more about:
Important:
  • Avalara is available with a Business, Business Elite, or Enterprise Premium plan.  
  • Calculating tax with Avalara is not currently available for users in Brazil and India.
  • 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.
  • If you previously set up tax (and shipping) in a merchant account (e.g. in PayPal), remove these settings before starting.

Setting up Avalara automated tax

Connect to Avalara from the Tax settings in your Wix dashboard to start calculating tax rates automatically.
Read before setting up automated tax
Some store owners need to complete their set up in the Avalara dashboard. 
  • Home rule states: If you're in a home rule state (Alabama, Alaska, Arizona, Colorado, Idaho, or Louisiana), be sure to click the link in step 10.
  • Canadian merchants: If you're in Canada, be sure to click the link in step 10.

To set up automated tax:

  1. Go to the tax settings in your site's dashboard.
  2. Click Automate Your Tax at the top right.
  3. Select the Avalara Service Terms & Conditions checkbox and click Continue.
  4. Enter your details to set up your Avalara account.
    Notes: Enter the exact address of your main business location. The address you enter is the region where you collect tax. If you need to collect tax in more than one region, you can add it later (see below). You cannot connect an existing Avalara account or use the same account for 2 Wix sites.
  5. Click Create Account (this might take a minute). 
  6. Enter or update the backup rate that is taxed in the unlikely event that Avalara can't provide a rate (e.g. if a customer enters incorrect zip code, connectivity issues, etc.).
  1. Click Save.
  2. (Optional) Add an additional location where you want to collect tax:
    • Add an additional country:
      1. Click + Add Country.
      2. Start typing the country name and select it from the drop-down.
      3. Click Add. 
      4. (Optional) Update the backup rate for the country you added.
      5. Click Save.
    • Add an additional US state:
      1. Click Manage.
      2. Click + Add State.
      3. Select the state from the drop-down.
      4. Click Add. 
      5. (Optional) Update the backup rate for the country you added.
      6. Click Save. 
  1. Scroll down to the Tax Settings and select whether to include tax in the product price:
    • Add tax at checkout: When buying an item that costs $100, customers see the total of $110 during checkout.
    • Include tax in item price: Tax amount is subtracted from the total price. When buying an item that costs $100, customers see a total of $100 during checkout, with the sales tax listed separately.
        
  1. If you are located in one of the following regions, click below to complete the setup process:
    • Home rule states (Alabama, Alaska, Arizona, Colorado, Idaho, Louisiana): Click here to complete setup.
    • Canadian merchants: Click here to complete setup.
  2. If you're in the EU, Avalara assumes that you sell more than €10,000. If you sell less than that in combined sales of goods and digital services between EU countries, you can update your selling threshold.
Tip:
If you collect a handling fee, you can add it and account for it in your tax collection. 

FAQs

Want to learn more?
Check out the full Wix Learn course on getting started with Wix eCommerce. Skip to the fifth video to learn more about setting up tax collection.

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In This Article

  • Setting up Avalara automated tax
  • FAQs

Related Content

Wix Stores: Accessing the Avalara Dashboard
Wix Stores: About Tax Collection
Wix Stores: Creating Tax Groups for Products with Avalara
Wix Stores: Setting Up Manual Tax Calculation

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