Ecommerce Sales Tax: Why Kintsugi is Essential for Online Stores

Who is Livease?

Known for its range of products that combine function with design, Livease provides practical and stylish home improvement accessories throughout U.S with their online store. Amassing over 18,000 loyal customers by selling across platforms like Etsy, Shopify, and Square, they quickly encountered challenges in managing sales tax compliance across multiple jurisdictions. They could no longer manually keep up with their sales tax obligations due to their growth, and desperately needed a solution that could make sure they were always compliant.

In the end they decided to partner with Kintsugi, an automated tax solution that simplifies the entire sales tax compliance process, to ensure they could sustainably keep up with their growth. As Livease bean selling in multiple states, it became clear that each state had their own unique tax laws and sales thresholds, making it difficult to manually track, calculate, and file sales taxes. By integrating Kintsugi’s software, Livease was able to automate tax calculations, track sales across platforms, and file taxes accurately, allowing them to focus on scaling their business efficiently​.

Managing Ecommerce Sales Tax While Growing can be Complicated

As Livease expanded its operations across platforms, managing sales tax became increasingly complex. The 2018 South Dakota v. Wayfair, Inc. ruling required businesses to collect and remit sales taxes in states where they met certain sales thresholds, even without a physical presence. This meant they had to track sales tax obligations in multiple states, each with different sales tax laws and jurisdictions. Adding considerable pressure to their growing business.

Handling sales tax manually became a time-consuming and error-prone process as they scaled. The team had to stay updated on changing sales tax rates across states, calculate taxes for each transaction, and ensure timely remittance. These administrative tasks began to take time away from core business functions like negotiating with manufacturers. The increasing risk of mistakes or missed deadlines also posed a threat, making the need for an automated solution more urgent​.

Kintsugi's Automated Sales Tax Solution Makes it Easy

Kintsugi's Sales Tax Automation software proved to be the perfect fit for Livease. Their ecommerces sales tax software streamlines the entire sales tax lifecycle—from sales tax permit registration to remittance—by integrating seamlessly with online stores like Shopify and Etsy. With real-time sales tax calculations, consideration of economic nexus, and automatic compliance updates, Kintsugi ensures accurate sales tax rates for every jurisdiction. This end-to-end automation meant that Livease could meet its sales tax obligations without the burden of manual tracking or filing (KintsugiAI).

Their platform is particularly well-suited for ecommerce businesses like Livease that operate across multiple states. Its ability to manage economic nexus, track sales tax thresholds, and handle marketplace transactions throughout multiple jurisdictions, including those requiring physical presence considerations, makes it a comprehensive solution. By automating processes like filing tax exemption status and back sales tax management through Voluntary Disclosure Agreements (VDAs), it reduces risks of non-compliance. For Livease, this has translated into significant time savings, fewer errors, and improved overall compliance with complex sales tax laws​ (KintsugiAI).

How Kintsugi Enhanced Compliance for Livease

• Time savings: By automating sales tax compliance with Kintsugi, Livease cut the time spent managing sales taxes by 70-80%. Previously, the team dedicated hours or even days to consolidating data from multiple platforms, calculating taxes, and preparing filings manually. Now, Kintsugi’s software handles these tasks with just a few clicks, freeing them up time to focus on business development and growth initiatives instead of administrative tasks.
• Error reduction: Kintsugi’s automation has drastically reduced the likelihood of errors in filing their sales taxes. The platform’s AI-driven calculations ensure that tax rates are applied correctly to each jurisdiction, eliminating the guesswork. This has provided Livease with peace of mind, knowing they are consistently compliant and avoiding the risk of fines or penalties due to incorrectly filing their sales taxes.

• Advanced insights: KintsugiSheets offers Livease a powerful tool for tracking sales taxes in real-time. The reporting system provides detailed insights into sales tax liabilities across different platforms and states, allowing the team to monitor where they meet or exceed sales thresholds. With these insights, they can stay on top of their sales tax obligations, ensuring full compliance in every state they operate in (KintsugiAI).

Kintsugi's Software is Vital to Scaling Businesses

As Livease continues to grow, Kintsugi becomes a vital piece to the puzzle of managing their company’s expansion. With real-time sales tax collection, economic nexus monitoring, and recognition of physical presence across states, the platform ensures they can seamlessly scale without the burden of managing sales tax compliance manually. Kintsugi’s no-code integrations and automated remittance make it easier for them to enter new markets while staying compliant. The software’s flexible pricing and incredible features, including efficient ecommerce sales tax management, make it a reliable partner for any ecommerce store.

More than just a tool, Kintsugi has become key in managing their U.S. growth. By automating ecommerce sales tax compliance, Livease can now focus on improving their product line and expanding their customer base. Kintsugi’s advanced reporting and support provides the confidence needed to handle back sales taxes and stay compliant in all jurisdictions. This partnership has allowed them to scale efficiently while avoiding the risks and penalties associated with sales tax non-compliance​.

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.