Sales tax compliance is a challenge every business faces. Tracking rates is one part of it. The other is classifying your products correctly so you charge the right amount. We've improved Kintsugi's AI-powered product categorization feature to make that part faster and more accurate.
Why product categorization matters for sales tax
Sales tax rates and exemptions vary widely depending on where you do business and what you sell. Some products qualify for reduced rates, and others are exempt. A misclassified product can mean undercharging or overcharging tax, and either one is a risk.
Categorizing products for tax compliance has traditionally been manual and slow. For a business with a large product catalog, it can feel like a job you never finish.
How our AI product classification works
The feature uses AI to save you time, reduce errors and make sure your products are classified correctly for tax purposes. Here's how it works:
- Product analysis: the AI reads product details such as descriptions, SKUs and metadata.
- Automated categorization: it identifies the right tax category for each product in seconds.
- Real-time updates: as tax regulations change, the system adapts so your classifications stay current.
What we shipped
- Improved classification accuracy: more accurate results in product classification.
- Better performance: products are classified faster than before.
- Scalability: manage tax compliance for large and growing product catalogs.
- Better user experience: clearer in-app messaging while products are being classified, plus more helpful toasts and status messages.
- More user input: customers can now configure additional preferences to tune the AI to their business.
Designed for your business
AI Product Classification is part of the Kintsugi platform and is easy to use. It works for a small business or a large enterprise, and it scales as your catalog grows.
Ready to simplify sales tax compliance?
The improvements to AI product classification are available now for all Kintsugi customers. We'd be glad to show you how it would work for your catalog.
About Kintsugi
Based in San Francisco and founded in 2022, Kintsugi is dedicated to taking the stress out of sales tax compliance. Our platform automates the entire process, delivering high performance, reliability, and flexibility as your business scales.
Kintsugi is secure, encrypted, GDPR-compliant, and SOC 2 Type II certified, adhering to the highest standards for security, availability, processing integrity, confidentiality, and privacy.
Learn more about Kintsugi’s platform and integrations here.
