Wix Sales Tax | How to Collect Sales Tax on Wix | Yonda Tax (2024)

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4 Steps to Make Your Wix Store Compliant for sales tax across the US

1. Understand How It Impacts Your Business

Registering for sales tax and collecting tax on your sales to all US states will have a big impact on your business. You must understand your tax exposure and reporting obligations. Our software can automate your tax filings, but there are many practical issues to consider:

  • What are my legal obligations and risks if I don’t get it right?
  • Could I structure my business more efficiently to minimise tax exposure?
  • How will charging sales tax impact my business commercially?
  • How do I set up my Wix site to collect sales tax at checkout
  • What if state tax offices ask questions or audit me?
  • What does it mean if I sell via other channels, not just Wix?

2. Register for a Sales Tax Permit

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You’ll need to set up your Wix site to collect tax in states where you have nexus.

If customers in multiple US states buy from your Wix store, you might be legally obligated to get a sales tax permit in those states. You will need to understand your Nexus obligations to determine where you have to register for tax.

You then need to apply with the relevant state for a sales tax permit. Each state has their own registration process, but it will generally involve completing a detailed registration form and providing supporting documentation about your business, supply chain and products.

3. Set Up Sales Tax Collection at Checkout in Relevant States

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Wix does not have native sales tax settings – you’ll need a third-party solution to set this up.

Since Wix does not have in-built functionality to collect sales tax at checkout, you’ll need to set this up separately.

Once registered for sales tax in a state, you must add tax to the price when you make sales to that state.

You’ll need to import a tax rates database into your Wix back-end or connect to a 3rd party system to request tax rates during checkout.

The Wix platform helps you build your eCommerce site, but it was not built to help you file and pay taxes.

You will have to file monthly or quarterly tax returns in the states where you are registered. Tax returns are filed electronically using the relevant state tax office’s filing system – to avoid penalties, you must ensure your returns are filed and paid accurately and on time.

The tax returns are very complicated – sales must be reported at a jurisdictional level, and sometimes by product. You need to factor in discounts, refunds and ‘sales tax holidays’ and ensure the exact amounts are reported in the correct boxes – or you risk severe penalties.

How Yonda helps you Collect, File & Pay Sales Tax on your Wix store

It’s hard enough to run a successful online business on Wix without having to worry about sales tax in 50 states. Yonda simplifies the Sales Tax process.

We can specifically help you with:

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Connect Wix to Yonda’s Platform

Wix API Integration with Yonda can connect your Wix store to Yonda in one click. Once integrated, we will regularly import your transactions when we need them for filing returns or nexus analysis. You only need to do this once: your Wix store will be connected with Yonda.

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Assistance with Setting Up Sales Tax Collection on Wix

You’ll need to add the correct amount of tax to your sales prices at checkout, depending on your products and the shipping address. To set this up, you’ll need access to a rates database – connect to Yonda to automate sales tax at checkout.

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Sales Tax Registration

Based on your nexus obligations, Yonda will register your business directly with all states where you require a sale tax permit. You simply complete a simple questionnaire and we take care of the rest. It’s as easy as that!

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Automated Sales Tax Return Filing

At the end of every month, you need to send Yonda your sales tax so we can check everything is in order and file your sales tax returns on time. This can be done manually by uploading the Orders report into our secure platform, but it is much easier to set up an automatic upload via API Integration.

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Free Nexus Analysis

Send us your Wix sales report and we’ll do the analysis to determine where you might have triggered or are approaching economic nexus.

Economic nexus refers to states where your sales have exceeded the state-defined threshold, which is either a revenue amount or a transaction volume.Some states will also include sales made off Wix in this as well.

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A Trusted Sales Tax Partner

You don’t have to do sales tax alone thanks to Yonda’s dedicated support team. The process can be fully automated, but we assign a sales tax expert to your account, who will understand your business and be available to answer all your questions and provide practical support.

Simply contact us today to find out more about how we can make your Wix store 100% compliant.

Book a free consultation

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Why It’s So Important to Register for Sales Tax

If merchants don’t register and remit their sales taxes, it could lead to legal and financial problems.

States have the right to legally demand all historic taxes you should have paid to them, and they can add ruinous penalties on top of that. What are the chances of them catching you? Very high!

In addition to the financial penalties that can be payable, there are other ways non-compliance can impact your business negatively, including:

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You’ll fail a due diligence analysis if you ever sell or list your business

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Your Wix store could be shut down by the state

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It will create irreparable reputational damage

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Your product could be banned in multiple US states

Does This Apply to US Sellers Only?

No. While it is more likely a State will find and penalise a US business if they are not complying, the sales tax legislation applies to all merchants who sell into the United States. It doesn’t matter if you export your products from outside the USA or have a local fulfilment – if you sell to a State you need to consider your Nexus.

There Are 50 States to Consider for Your Wix Store!

Sales tax in the USA is a consumption tax on the sale of goods. If you sell products to US states from your Wix store, you might need to charge sales tax.

The tax is imposed at a state level, so there is no federal law which governs the tax for the USA as a whole. The first state to implement a sales tax was West Virginia in 1921 and since then, it has been adopted by 46 states (and is used in Washington DC).

Although the tax is charged by the state and local authorities, it is administered by the seller who is responsible for charging it. Wix merchants must charge sales tax if they have ‘Nexus‘ in the state, which is the USA’s way of saying “a legal obligation to register and collect sales tax”.

Every state has different rules, so it is not so simple to know where you have to register.

Does Wix Collect and Remit Sales Tax?

No, Wix does not collect and remit sales tax on behalf of its sellers. This is because Wix is not a marketplace facilitator, and therefore, does not need to legally automatically charge sales tax on purchases. As a result, Wix sellers are responsible for collecting and remitting sales taxes to the appropriate US states.

Because of this, sellers may be left overwhelmed or confused by the process of sales tax with Wix. Sales tax is complicated, and doing it alone can be even more so. However, Yonda is here to help. Our team of experts and automation software can make collecting, remitting and filing sales taxes now easier than ever for Wix sellers.

To get started, simply get in touch.

Book a free consultation

OR EMAIL US

hello@yondatax.com

Wix Sales Tax | How to Collect Sales Tax on Wix | Yonda Tax (2024)
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