Sales Tax Nexus: Why Online Sellers love Kintsugi

Who is Fashion Aura?

Fashion Aura, an athleisure brand from Pakistan, has built its reputation on providing cute clothing for tall women that balances comfort with style. Though, as they expanded their presence to the U.S. market, they encountered some hardships with U.S. sales tax compliance, particularly regarding economic nexus—a daunting task for any international seller. With each state enforcing unique tax regulations, Fashion Aura faced challenges understanding and meeting these varying obligations, making it clear they needed a solution to manage these responsibilities without disrupting their core mission: making every tall woman feel seen.

They quickly realized that to continue their U.S. growth, they needed a tax compliance solution that could handle both economic and physical nexus obligations, including accurate tracking, reporting, and registration as needed. After evaluating several options, Fashion Aura landed on Kintsugi. They chose the software for its specialized U.S. tax features, including real-time nexus tracking and seamless integration with Shopify. Kintsugi’s platform provided automated sales tax compliance management, helping them avoid penalties and stay compliant in every state where they met sales thresholds.

Navigating Economic Nexus is Challenging

As Fashion Aura expanded their ecommerce presence in the U.S., they encountered a web of complex state-specific sales tax regulations, often underpinned by the commerce clause, that posed a significant barrier. Each state has its own nexus rules—requiring businesses to register, collect, and remit sales tax once certain sales thresholds were met or if there’s a physical presence, such as warehouses or even affiliates, within the state. Navigating these rules was resource-intensive and time-consuming, creating additional operational challenges for Fashion Aura’s finance team. They also faced potential financial penalties for unintentional non-compliance, which could impact their profitability and growth plans. Recognizing that manual management of these requirements wasn’t feasible, they realized they needed a solution to simplify tax compliance as they scaled.

In addition to managing economic nexus thresholds, Fashion Aura also faced the challenge of tracking and updating compliance obligations in real-time. As their sales increased, the risk of hitting new thresholds in different states grew, requiring timely registration and tax remittance across multiple jurisdictions. Their existing systems were not equipped to support the demands of multi-state tax compliance, nor did they provide the data visibility needed for quick decision-making. Without a robust tax solution in place, they risked overlooking critical obligations, which could delay their growth and strain resources.

Kintsugi Makes Handling Sales Tax Nexus Simple

Fashion Aura needed a tax solution that was both intuitive and adaptable to the differing sales tax requirements in the U.S. With over 45 states enforcing their own nexus laws, keeping track of compliance across state lines required a tool that could offer both accuracy and simplicity. Kintsugi’s free nexus tracking and automated alerts, including features like click-through nexus monitoring, provided just that, allowing them to monitor thresholds and obligations as they expanded their marketplace sales in new markets. Their easy-to-use platform was also fully integrated with Shopify, making it straightforward to sync sales data, register new sales channels, and track tax liability in real time without manual data input. With Kintsugi, Fashion Aura found a tax solution that fit seamlessly into their existing workflows while scaling alongside their business.

Additionally, Kintsugi’s dedicated support team became an invaluable resource for Fashion Aura as they navigated state-specific sales tax queeries. Their customer service team was always available to assist, providing timely guidance they needed and answering any compliance question they had, making it easier for them to confidently approach new jurisdictions. They valued the expertise and accessibility of the support team, knowing they could rely on Kintsugi’s insights to avoid missteps as they expanded.

Why Kintsugi is the Top Choice for Online Retailers

• Enhanced Financial Savings: By proactively managing tax liabilities and avoiding compliance missteps, Fashion Aura saved thousands of dollars in potential fines and penalties. Kintsugi’s cost-effective approach ensured that they could maintain compliance without heavy financial investment in external resources or extensive tax expertise. This financial freedom helped the brand grow sustainably while staying aligned with their mission.
• Expanded Market Reach: Equipped with Kintsugi’s tools, Fashion Aura confidently expanded their reach across the U.S., knowing they could handle their evolving tax obligations. The platform’s clear reporting and automated alerts allowed them to pursue growth in new jurisdictions without risking compliance gaps. This seamless management of multi-state tax enabled them to reach more U.S. customers and grow their market footprint.
• Aligned Compliance with Brand Goals: Kintsugi’s tax compliance features aligned perfectly with Fashion Aura’s commitment to sustainable and ethical growth, supporting both compliance and brand values. By using Kintsugi’s platform, Fashion Aura could maintain its commitment to transparency and integrity without the need for extensive in-house sales tax compliance resources. This alignment strengthened their brand reputation and enabled them to expand their impact in the global athleisure market.

The Future of Economic Nexus

As Fashion Aura continues to grow their reach within the U.S. market, Kintsugi remains an essential partner in supporting their expansion. With sales increasing and new states coming into the picture, they anticipate leveraging more of Kintsugi’s advanced compliance tools, including AI-driven insights that can predict tax obligations based on sales trends. Kintsugi’s commitment to innovation means that Fashion Aura can rely on the platform to stay up-to-date with any changes in state sales tax laws, helping them remain compliant without requiring extensive internal resources. This partnership allows Fashion Aura to confidently navigate U.S. sales tax, giving them the freedom to focus on broadening their product lines and deepening their commitment to sustainability.

Looking to the future, Fashion Aura sees Kintsugi as a long-term ally, providing the sales tax compliance foundation they need to achieve ambitious growth goals. With Kintsugi’s intuitive platform managing their sales tax, they envision expanding into additional international markets, knowing they have a scalable compliance solution for wherever their growth takes them. The ongoing support from Kintsugi’s expert team reassures them that they can address any challenges or complexities that come with new market entry. Together, Fashion Aura and Kintsugi are shaping a pathway for sustainable growth, allowing them to focus on their mission of bringing size inclusive athleisure to a global audience with confidence.

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.