Setting up sales tax
Setting Up Automatic Tax Calculation
Important:
This tax solution is currently available for Wix Stores, Wix Bookings, and Wix Restaurants Orders (New). Using a different app? Click an option below:
Simplify tax collection by letting Avalara do the hard work for you. Wix works with a third-party software, Avalara, to provide automated tax.
Important:
Avalara is not able to calculate tax in Brazil, India, and a few other locations (see list in the FAQ below).
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 meet tax obligations.
Step 1 | Connect to Avalara
Get started by connecting your site to Avalara. Note that you cannot connect the same Avalara account to multiple sites.
Before you begin:
If you previously set up tax in a merchant account (e.g. PayPal), remove the setting.
Avalara is available for use in sites that have upgraded to a Premium plan or Studio plan that supports automated sales tax.
Go to Tax in your site's dashboard.
Click Automate Your Tax at the top right.
Select the Avalara Service Terms & Conditions checkbox and click Continue.
Enter your details to set up your Avalara account.
Notes: Enter the exact address of your main business location.Click Create Account (this might take a minute).
Step 2 | Add tax locations
Now that you're connected, you need to add the location or locations where you're required to connect tax. Learn more about determining where you need to collect tax.
To add tax locations:
Go to Tax in your site's dashboard.
Click +Add Location.
Select a country from the Country drop-down.
(Optional) Click the Set up tax for every region individually toggle.
Notes:Leave the toggle disabled to collect the same tax rates for the entire country.
The toggle doesn't appear for the US, Canada, and countries without separate regions.
If relevant, select one or more states/provinces etc. from the drop-down.
Click Add.
(Optional) Repeat steps 2-6 to add additional tax locations.
Step 3 | Set how tax is displayed in your shop
Decide whether to display items in your shop with the tax included or add tax at checkout. Learn more about setting whether tax is included in the product price.
To set how tax displays in your shop:
Go to Tax in your site's dashboard.
Select an option:Tax should be added at checkout: For example, if the tax rate is 10% and a customer buys a $100 product, they are charged $110 at checkout.
Tax is already included in my prices: For example, if the tax rate is 10% and a customer buys a $100 product, they are charged $100 at checkout.
Step 4 | (Optional) Create and manage tax groups
Create a custom tax group for any items that aren't taxed at the default rate. For example, if children's car seats are tax-exempt in one of your tax locations, you can create a car seat tax group and add all your relevant products to the group.
After setup, Avalara will make sure you collect the correct tax rate for this group of items in all your tax locations.
Learn how to create tax groups.
Step 5 | Add backup rates
On rare occasions, it's not possible to connect to Avalara during checkout. To avoid taxing sales at 0%, you can enter backup rates. These rates are only applied in cases where Avalara temporarily cannot provide a rate.
To add backup rates:
Go to Tax in your site's dashboard.
Select a location.
Enter a rate for any of the following tax groups:Products: This should be the default tax rate for this location.
Services: This option appears only if you use Wix Bookings.
Menu items: This option appears only if you use Wix Restaurants Orders (New).
Restaurant service fees: This option appears only if you use Wix Restaurants Orders (New).
Shipping and delivery: Enter a backup rate if store or restaurant shipping is taxed in this location.
Gift cards: This appears only if you use Wix gift cards. Enter a rate if gift cards are taxed in this location.
Custom groups: If you created custom groups of products, they'll appear here. You can enter a backup rate for each group you created.
If you have more than 1 location, repeat steps 2 and 3 for each one.
Step 6 | Complete setup in Avalara
There are a number of reasons why you may need to take a few more steps in Avalara to get your business set up. For example, in the US, there are a number of home rule states for which Avalara requires extra information. Check each of the options below to see if any of them are relevant for your business.
To complete setup:
To connect to Avalara, select an option:
If you've logged into Avalara before:Click here and log in to your account.
If this is your first login:Click this link to set your Avalara password.
Enter the email you used to sign up with Avalara.
Click Request reset.
Click the link in the email you receive.
Create a new password.
Click Save.
Choose what you want to do:
Complete setup for home rule states
A "home rule state" is a state in the US that has cities, counties, or special tax jurisdictions with self-administered local tax authorities. These authorities collect tax independently from their states. Learn more
Note: Check with your accountant to see if you collect tax in a home rule state.
Home rule states include:
Alabama
Alaska (only certain parts of Alaska are home rule)
Arizona
Colorado
Idaho
Louisiana
To add specific jurisdictions for home rule states:
Click Settings at the top.
Tip: If not already there, make sure you go to the Avalara AvaTax settings.Select Where you collect tax.
Select the United states.
Click Add states where you report tax.
Select the checkboxes next to the relevant states and click Next.
Click Yes, I'm registered.
If relevant, Avalara will prompt you to add more information to one or more regions.
Click Save.
Complete setup for Canada
By default, Avalara collects only the 5% GST (federal goods and services tax) in Canada. To collect provincial tax (i.e. PST, HST) in a specific province or provinces, you'll need to go to the Avalara dashboard and add those locations.
To complete tax setup in Canada:
Click Settings at the top.
Tip: If not already there, make sure you go to the Avalara AvaTax settings.Select Where you collect tax.
Click Canada.
Click Add provincial taxes.
Select the checkboxes next to the provinces where you need to collect tax.
Click Done.
Update your distance selling threshold (EU only)
By default, Avalara assumes that you sell more than €10,000.
If you sell less than €10,000 in combined sales of goods and digital services between EU countries (or between Northern Ireland and EU countries) and you wish to be taxed as a business selling below this threshold, you can update your distance selling threshold.
To update your distance selling threshold:
Click Settings at the top.
Tip: If not already there, make sure you go to the Avalara AvaTax settings.Select All settings.
Click Manage next to EU distance setting threshold.
Click the checkmark next to This company exceeds the EU distance selling threshold to disable it.
(Optional) Set up tax collection for handling fees (any location)
If you add a handling fee to your shipping, then those shipping costs automatically need to be taxed. To collect tax accurately, follow the instructions below to update the Avalara freight code.
To set up tax collection for handling fees:
Click Settings at the top.
Tip: If not already there, make sure you go to the Avalara AvaTax settings.Select What you sell.
Click Manage next to What you sell.
Click Add an item under Map one at a time.
Click Add an item.
Enter "Shipping" in the Item Code field.
Enter "Shipping & Handling" in the Item Description field.
Enter "FR030000" in the Avalara tax code field.
Click Save.
(Optional) Override Avalara's tax on shipping settings
Avalara automatically calculates whether you need to collect tax on shipping (freight).
To override the Avalara settings and stop collecting tax on shipping or to collect at a different rate, you can create custom rules in the Avalara dashboard.
To set tax on shipping to zero
Click Settings at the top.
Tip: If not already there, make sure you go to the Avalara AvaTax settings.Select All settings.
Click Manage next to Custom rules.
Click +Add a tax rule.
Enter a name for your custom rule (e.g. France Shipping).
Select a date when this rule starts to be applied.
(Optional) Select an expiration date for the rule.
Select Taxability rule from the Rule Type drop-down.
Select the country where the rule will be applied.
(Optional) Select a region in the country.
(Optional) Select a jurisdiction.
Under Tax Type, select Input and Output tax.
Under Rate Type, select Zero.
Under Tax Code, enter FR.
Under Entity Use Code, select None.
Make sure that Non-taxable is selected in section 2 on the right.
Click Save tax rule.
To set a custom tax rate for shipping:
To set a custom shipping tax rate, you need to create two shipping tax rules for each country you collect tax from.
Step 1 | Create a rate override rule:
Enter a name for your custom rule (e.g. France Shipping).
Select the date this rule starts to be applied.
(Optional) Select an expiration date for the rule.
Select Rate override from the Rule Type drop-down.
Select the country where the rule will be applied.
(Optional) Select a region in the country.
(Optional) Select a jurisdiction.
Select Input and Output tax under Tax Type.
Note: US merchants should select Sales or Sellers Use Tax.Select Standard from the Rate Type drop-down.
Under Tax Code, Enter FR.
Under Entity Use Code, select None.
In section 2 on the right, add the desired tax rate.
Click Save tax rule.
Step 1 | Create a taxability rule:
Click +Add a tax rule.
Enter a name for your custom rule (e.g. France Taxability).
Select a date when this rule starts to be applied.
(Optional) Select an expiration date for the rule.
Select Taxability rule from the Rule Type drop-down.
Select the same country you selected for the first rule.
(Optional) Select same region in the country.
(Optional) Select a jurisdiction.
Under Tax Type, select Input and Output tax.
Note: US merchants should select Sales or Sellers Use Tax.Under Rate Type, select Standard.
Under Tax Code, enter FR.
Under Entity Use Code, select None.
In section 2 on the right, select Taxable.
Click Save tax rule.
FAQs
Click a question below to learn more about collecting tax with Avalara.
I already have an Avalara account. Can I connect to it?
You can connect to an existing Avalara account by contacting Customer Care and requesting to do so. It's not possible to connect to an existing account on your own.
Can I use the same Avalara account for my two Wix sites?
No, each site must have its own Avalara account.
How can I check if Avalara is available in my region?
Avalara is available in most regions around the world. If Avalara is unavailable in your area, you can still collect tax in your store using the manual method.
Avalara is not available in the following locations:
Åland Islands
Antarctica
Bouvet Island
Brazil
Heard Island And McDonald Islands
India
Isle Of Man
Puerto Rico
Western Sahara
Can I manage some regions with automatic tax and others with manual?
Yes, for each location you add, you can select how you want to manage that tax region.
To change the calculation method for one or more locations:
Go to Tax in your site's dashboard.
Select the checkboxes next to any locations you want to change.
Click Change Calculation Method.
Select Enter tax rates manually.
Click Save.
How can I get information about the rate collected in a particular location?
For information on tax rates in different locations, check out Avalara's guide.
How can I display tax estimates on the Cart Page?
Customers like to know what to expect before they get to the checkout. You can display an estimate of tax and shipping rates, right in the cart page.
Learn how to display tax estimates on the cart page.
Can I add new locations where I collect tax in the Avalara dashboard?
No. To add any new locations, go to the tax settings in the Wix Dashboard. In the Avalara dashboard, you can only add or delete details to an existing region. You cannot add new regions.