From Hours to Less Than 10 Minutes: How Kintsugi Transformed Copenhagen Sleep Company’s Sales Tax Compliance

Copenhagen Sleep Company, a Denmark-based luxury sleepwear brand, is renowned for its eco-conscious SleepCool™ technology, crafted from sustainable eucalyptus fibers. With a strong commitment to quality and sustainability, the company has built a loyal global customer base.

Challenge: Navigating Texas' complex sales tax

As Copenhagen Sleep Company expanded its U.S. operations, managing sales tax in Texas posed a significant challenge. Texas has a state sales tax rate of 6.25%, but local jurisdictions, such as cities and counties, can add up to 2%, bringing the total rate up to 8.25%. 

This combination of state and local sales tax regulations made it difficult to manually track and apply the correct sales tax rates for each transaction, especially given their growth into new markets. On top of this, Texas imposes economic nexus laws, which require remote sellers that exceed $500,000 in revenue from sales to register, collect, and remit sales tax, even without a physical presence there.

Due to the complex sales tax in Texas, Copenhagen Sleep Company spent too much time on sales tax compliance. They could have spent those hours in growing their business or something else that would generate them revenue. Upon such realization, they decided to seek help and try sales tax automation tools.

Solution: Kintsugi sales tax automation

Recognizing the need for a robust tax compliance solution, Copenhagen Sleep Company adopted Kintsugi’s automated platform. The software seamlessly integrated with their Shopify store, automating accurate tax calculations based on customer location and ensuring compliance with Texas’s destination-based tax system. By monitoring economic nexus thresholds and alerting the team when sales exceeded state-specific requirements, Kintsugi eliminated the need for manual oversight.

With Kintsugi’s automation, filing sales tax now takes less than 10 minutes each quarter—a reduction of hours compared to manual efforts. The platform also proactively updates local and state tax rates, ensuring accurate reporting and filing. For Copenhagen Sleep Company, the streamlined process reduced stress, minimized errors, and allowed them to focus on expanding their product lines and global reach.

In addition to managing sales tax rates, Kintsugi tracks the company’s economic nexus in every state they operate in, automatically alerting the business when their revenue exceeds sales thresholds that require tax registration. This feature allows them to stay compliant with local regulations as they expand into new markets.

Kintsugi also handles filing for both sales tax and use tax, ensuring that all of their tax obligations are met promptly and accurately. With its real-time updates and comprehensive tax management tools, Kintsugi has become a critical partner in maintaining their sales tax compliance as they scale​

Impact: Sales tax compliance only takes less than 10 minutes with Kintsugi

Sales tax compliance made easy. After integrating Kintsugi with their Shopify store, Copenhagen Sleep Company has been spending fewer hours managing their sales tax. What used to take hours now only takes less than 10 minutes.

Money savings. By reducing compliance errors and automating filings, Kintsugi has saved Copenhagen Sleep Company both time and money. Kintsugi has helped them prevent penalties, which can range from 5% to 25% for late filings or miscalculations in Texas.

Confidence to grow. With the platform’s ability to manage intricate sales tax requirements across jurisdictions and features like real-time updates and automatic remittance, the brand can scale its operations while maintaining full compliance.

As Copenhagen Sleep Company looks toward future expansion, Kintsugi’s real-time updates and automation will remain critical in handling evolving tax regulations. With Kintsugi by their side, the brand can concentrate on delivering sustainable sleepwear to customers worldwide, knowing their compliance is in expert hands.

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. Top companies like Alchemy Marketing and Cabi use our app.  Sasha Novakovich of Alchemy Cloud just spent three minutes on the platform and understood their sales tax exposure.

We can do the same for you. Sign up or book a demo now.