Setting Up Tax Groups Using Automatic Tax Calculation
Important:
This tax solution is currently available for Wix Stores, Wix Bookings, Wix Restaurants Orders (New) orders, Wix Donations, and is in the process of becoming available for Pricing Plans.
Using a different app? Click an option below:
Make sure you're compliant with tax regulations for items that are taxed at special rates. For example, if you sell clothing for both children and adults, but children's clothing is tax-free, you can create a tax group for the kids clothes. That way, all your products are taxed at the correct rate in each location.
Step 1 | Determine which items have special tax rates
Each tax location has a standard sales tax rate. However, certain items may be taxed at lower or higher rates. Moreover, some goods may be exempt from taxation altogether.
For instance, a country with a general tax rate of 10% may tax children's car seats at 5%. To account for this difference, a merchant in this location would need to create a car seat tax group, assign the relevant Avalara code (in this example, "Child car seats & restraints"), and then add the relevant products to this group.
Important:
Special tax rates vary by country and can vary by state, province, etc. These tax rates also change over time. We suggest you consult with an accountant or with your local tax authority to find out if any of your products are taxed at a special rate.
Step 2 | Create a tax group
You create a tax group by giving it a name, assigning it an Avalara tax code, and saving it. Make sure to give it a name that makes it easy for you to identify. Customers do not see the group name.
Notes:
If you previously created tax groups using the manual method, you do not need to create new tax groups. Simply add Avalara tax codes to any groups you already created.
It's not currently possible to create tax groups for Wix Bookings services.
To create a tax group:
Go to Tax in your site's dashboard.
Scroll down to Tax groups.
Click +Add Custom Group.
Enter a name in the Group name field.
Select an option from the Avalara Tax Code drop-down:
Select one of the preset groups (e.g. Cosmetics).
Click + More Tax Codes:
Enter a search term (e.g. car seats).
Click to select the relevant tax group and click Select.
Click Add.
After setup, you'll see the tax group you created listed with your default tax groups.
Step 3 | Add items to the group
Now that your tax groups are set up, you can assign items to your groups. For example, if you created a tax group for children's clothing, you can add all the relevant children's clothing products you sell to that group.
To assign items to your tax group:
Choose the items you want to add to a tax group:
Add a single store product to a tax group
Go to Products in your site's dashboard.
Select the first product you want to add to the tax group.
Select the relevant tax group from the Product tax group drop-down.
Add multiple store products to a tax group
You can add multiple products at once to a tax group right from your tax settings.
To add multiple products to a tax group:
Go to Tax in your site's dashboard.
Hover over the relevant tax group and click Add Products.
Select the products you want to add to this tax group.
Click Save.
You can also assign an individual product to a tax group from the Products tab. This comes in handy when adding new products that need to be assigned to a group.
To add a single product to a tax group:
Go to Products in your site's dashboard.
Select the first product you want to add to the tax group.
Select the relevant tax group from the Product tax group drop-down.
FAQs
Click a question below to learn more about tax groups.
What happens when I create a new item after setting up tax groups?
When you create a new store product it's automatically assigned to the default tax group. You can choose a different tax group for any new item you create.
To add a new store product to a tax group:
Go to Products in your site's dashboard.
Create the new product.
Select the relevant tax group from the Product tax group drop-down.
What happens when I remove a tax group?
You can remove a tax group at any time. When you do, store products are added to the Products default group. These items are then taxed at the default rate.
What happens if a group of items has a special rate in one location but not another?
If you collect tax in multiple locations, you may find that some items have a special rate in one location but not in others. Once you create a tax group, Avalara knows to tax this group of items correctly in all locations.
What do customers see at checkout when purchasing items taxed at different rates?
The total tax amount for the order is displayed at checkout and elsewhere.