Avalara AvaTax is a tax compliance service that calculates sales tax in real time using address-based rates. The WC Vendors Tax add-on connects AvaTax to your WC Vendors marketplace, so sales tax is calculated by AvaTax at checkout, even when one order contains products from several vendors.
You choose the Seller of record. Set it to Marketplace and tax is calculated from your store address using your Avalara account. Set it to Vendor and the cart is split by vendor, so each vendor’s products are taxed from their own store address. Vendors can connect their own Avalara account by adding their Avatax Account ID, Avatax License Key and Avatax Company Code on the Tax tab of their store settings. Vendors who don’t connect an account use yours.
Key features for your marketplace
- Real-time rates at checkout: AvaTax calculates tax on products, and on shipping when shipping is included, on the classic cart and checkout pages.
- Vendor Avalara accounts: when vendors are the seller of record, they can connect their own Avalara account and verify it from their dashboard.
- Avalara tax codes: enter an AvaTax tax code for each simple product in the Product Tax category field. Products without a code are sent as general tangible goods.
- Order and refund uploads: when the marketplace is the seller of record, turn on Upload orders to commit paid orders and refunds to your AvaTax account.
- Per-product control: exclude individual simple products from automatic tax calculations.
- Sandbox mode: connect to an Avalara sandbox account to test before going live.
You need the WC Vendors Tax add-on and WC Vendors Pro, plus an Avalara AvaTax account with an Account ID and License key. Prices must be entered exclusive of tax, and the integration works with the classic WooCommerce cart and checkout, not the block-based checkout.

