Shopify Sales Tax: How Kintsugi Created a Better Tax Solution

Who are JnS Bros?

JnS Bros is a New Zealand-based street wear brand that offers high-quality apparel designed to capture the laid-back Kiwi lifestyle. With a growing product line that includes hoodies, t-shirts, and accessories, they quickly gained popularity both locally and internationally. However, as they expanded into the international market, particularly in the U.S. through their Shopify marketplace platform, they encountered issues with remaining sales tax compliant. They found that filing their taxes across states with differing tax laws became increasingly complicated and time-consuming for their small team.

JnS Bros needed a solution that could automate their sales tax management while ensuring compliance with U.S. tax laws. As they searched for a reliable tax automation tool, Kintsugi stood out due to its seamless integration with Shopify, real-time tax calculation features, and ability to handle complex tax jurisdictions. The brand chose Kintsugi because of its ability to streamline their tax operations, allowing them to focus on growing their business while avoiding the burden of manually managing their sales taxes.

Handling Tax laws while Growing is Complicated

As JnS Bros expanded their ecommerce business into the U.S., they quickly realized how utterly complex managing sales tax compliance across multiple states was. Each state had its own set of tax laws, tax rates, and nexus requirements that dictated when a company must start collecting sales tax. With over 45 states enforcing different rules, they struggled to keep up with all the varying sales tax requirements. Exceeding the sales thresholds in multiple states triggered new tax obligations, making it difficult to maintain their compliance manually while staying focused on growth.

Their Shopify platform didn’t offer the level of automation they needed to manage these diverse tax jurisdictions efficiently. JnS Bros faced the risk of errors, missed deadlines, and potential penalties, all of which threatened to disrupt their expansion. Manually calculating sales tax was not only time-consuming but also prone to mistakes, adding a ton stress to an already busy team. The growing tax liability they faced in the U.S. made it clear that they needed an automated solution that could calculate their sales tax in real-time and guarantee that they always met compliance requirements in every state they sold in.

Kintsugi Automates Sales Taxes for Ecommerce Businesses

To address the challenge of their growing sales tax obligations, JnS Bros turned to Kintsugi, an automated tax compliance software designed to simplify sales tax management for ecommerce businesses like themselves. The software’s seamless integration with Shopify allowed them to automate real-time sales tax calculations for each transaction. This enabled them to remain compliant with U.S. tax laws while continuing to expand into more countries. The platform tracked state-specific tax thresholds, automatically applying the correct tax rates and ensuring that JnS Bros could stay compliant without the need for manual intervention (KintsugiAI).

Kintsugi’s intuitive software provided them with the tools they needed to manage their sales tax obligations efficiently. It automatically updated tax rates and handled reporting, significantly reducing any administrative burden to the team. This automation meant fewer errors, less time spent on tax calculations, and more confidence in their Shopify sales tax strategy. Kintsugi’s ability to scale alongside the company as they entered new markets was a key factor in their choice, allowing JnS Bros to focus on growth.

How Kintsugi Streamlined Growth for JnS Bros

• Time Savings: Since adopting Kintsugi, JnS Bros significantly reduced time spent on manual tax calculations and tracking. This automation enabled them to focus more on growing their business rather than navigating sales tax compliance. Kintsugi has made it possible for their team to put more focus into the core areas of their business, improving productivity across the board and enhancing their ability to meet customer demands.
• Error reduction: With automated tax updates, the risk of human error and missed filing deadlines decreased. Kintsugi ensured their compliance with state-specific regulations, helping JnS Bros avoid penalties and costly mistakes. This accuracy provided them with the assurance needed to confidently expand into new markets.

• Operational Efficiency: Kintsugi’s software improved the overall operational efficiency for JnS Bros. They can now handle their tax liability with ease, ensuring their compliance when entering new markets. As a result, they’ve reduced compliance costs, enabling them to reinvest those savings into growth initiatives and long-term scaling strategies. Kintsugi has also reduced the registration and filing time by up to 83%, allowing Shopify stores like JnS Bros to focus on scaling faster​ (KintsugiAI).

International Growth with Kintsugi

Kintsugi has proven to be an essential tool for JnS Bros as they continue to expand into the U.S. and face complex sales tax compliance requirements. By integrating Kintsugi’s software into their Shopify marketplace platform, they were able to streamline tax processes, reduce manual work, and avoid costly errors. This has provided JnS Bros with the confidence to continue scaling their business globally, knowing that their compliance is being managed accurately in real time.

Looking forward, they are well-positioned to continue their growth journey, with Kintsugi as one of their partners in their sales tax compliance strategy. As the company enters new markets and faces evolving tax regulations, Kintsugi’s powerful automation, real-time updates, and customer support will be integral in ensuring seamless compliance. For any ecommerce marketplace dealing with multi-jurisdictional tax requirements, Kintsugi offers a scalable, cost-effective solution that removes the burden of manual compliance and allows businesses to focus on their growth.

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.