International Sales Tax: How Kintsugi Demystifies Sales Tax Around the World
Barkin Doganay · Published: October 14, 2024
Who is T.A.G.?
Based in Pakistan, The Attire Glow, is a fast-growing fashion brand known for its stylish, affordable polos and casual wear. With a focus on high-quality, modern designs, the brand has gained popularity both domestically and internationally. As their e-commerce business expanded into new markets, they faced a significant challenge: tracking and managing their international sales tax compliance. As we know, every country has its own sales tax requirements--VAT, GST, and sales tax systems---which created significant administrative hurdles and increased the risk of non-compliance.
To solve this, The Attire Glow sought out a tax automation solution capable of handling their global business. They needed a software that could automate their tax calculations and filings across the U.S., where they had to meet certain economic nexus requirements. Kintsugi offered the perfect solution. With its automated platform, it helped them streamline tax management, allowing them to better manage compliance across all the countries they operated in.
Managing Sales Tax Internationally is a Hassle
As The Attire Glow started to sell to international customers, managing sales tax became increasingly complex. Each country uses a distinct tax system—some require Value Added Tax (VAT), others a Goods and Services Tax (GST), and in the U.S., businesses face sales tax based on physical presence or economic nexus laws. In the U.S., businesses like them must collect sales tax once they surpass a certain revenue or transaction threshold, even without a physical presence, adding to the compliance burden.
“Managing sales tax across different countries was overwhelming. Each country had its own rules, and keeping track of them became too difficult. With our expansion into the U.S., we had to deal with new economic nexus laws, and manually handling everything wasn’t sustainable.” — The Attire Glow
Tracking the various tax thresholds and reporting requirements across countries became unmanageable and unsustainable. They needed an automated tax solution that could manage these obligations efficiently, allowing them to focus on growth while ensuring global compliance.
Automating International Sales Tax Compliance with Kintsugi
Kintsugi’s platform provided an automated solution that could help The Attire Glow manage their international sales tax obligations globally. With real-time monitoring and one-click filings, Kintsugi simplified tax compliance, ensuring the company met their tax obligations in each U.S. state. It also guaranteed compliance with its sales tax nexus, streamlining operations and minimizing the risk of penalties (KintsugiAI).This automation reduced the time spent on manual calculations and filings, allowing their team to focus on growth.
“Kintsugi’s auto-file service has been a game-changer for us. We no longer have to worry about tax deadlines or accuracy—everything is taken care of automatically.” — Founder of The Attire Glow
Even though Kintsugi is designed to handle U.S. sales taxes, it remains a vital tool for international sellers looking to establish themselves in the American market. The platform automatically calculates taxes based on each jurisdiction’s rules, giving companies real-time insights into their liabilities and reducing administrative overhead. This comprehensive solution keeps brand’s like The Attire Glow compliant globally, allowing for smoother expansion into new markets without the pains of manual tax management.
How Kintsugi Simplifies U.S. Sales Tax
- Automated International Tax Compliance: Kintsugi enabled The Attire Glow to automate tax filings and calculations across the U.S. This integration with Shopify provided accurate tax calculations, reducing manual efforts and improving efficiency.
- Economic Nexus Management: Kintsugi created and managed The Attire Glow’s economic nexus in the U.S., tracking the sale of goods and transaction thresholds to ensure compliance within state-specific sales tax jurisdictions (KintsugiAI). This proactive management helped the business scale while avoiding penalties.
“With Kintsugi, we’ve been able to expand into more markets without worrying about tax compliance. The platform grows with us, and that gives us the confidence to keep scaling.” **** — CEO of The Attire Glow
- Reduced Errors and Time Savings: Kintsugi’s automation cut tax-related errors by over 98%, ensuring timely and accurate filings. This allowed The Attire Glow to focus on marketing and creating new designs rather than administrative burdens.
- Real-Time Monitoring of Tax Exposure: Kintsugi’s platform provided real-time insights into The Attire Glow’s tax liabilities across the U.S. This feature enabled the business to make informed decisions about expansion while ensuring full compliance within each market (KintsugiAI).
The Best Sales Tax Tool for International Expansion
Kintsugi has been a crucial to The Attire Glow’s global expansion, streamlining their management of international sales tax. By automating compliance across multiple states, the software has eliminated the burden of navigating complex sales tax rules. This has allowed them to focus on growing their business without the constant worry of tax-related penalties.
“For any e-commerce business looking to scale internationally, Kintsugi is a must. It simplifies one of the most complex aspects of running a business—sales tax compliance—so you can focus on growth.” — The Attire Glow
Kintsugi’s real-time monitoring and automated filings have ensured full compliance with the U.S.'s taxation policy, giving The Attire Glow the confidence to scale internationally. With features that simplify tax management across jurisdictions, it offers a reliable solution for any e-commerce business looking to grow across borders and sell to international customers, providing both efficiency and peace of mind.
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.
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