In 2018, the Supreme Court ruled that e-commerce retailers no longer needed a physical presence in a state to be subject to sales tax. While this decision was a boon for states looking to collect revenue, it created a significant headache for e-commerce sellers, who now had to navigate complex and varying sales tax laws across multiple jurisdictions.
The Challenge of Sales Tax Compliance
Sales tax compliance is a complex and time-consuming process for e-commerce retailers. Each state has its own set of rules and regulations regarding sales tax, which can be difficult to keep track of. Moreover, the lack of standardization in sales tax rates and laws across states adds to the complexity.
Kintsugi: Simplifying Sales Tax Compliance
Kintsugi is a San Francisco-based company that aims to simplify sales tax compliance for e-commerce retailers. Founded by Pujun Bhatnagar and his team, Kintsugi uses AI technology to connect with a company’s billing and payment systems and determine which states they are liable to pay sales tax in.
How Kintsugi Works
Kintsugi’s algorithm takes into account various factors such as product type, shipping location, and exemption certificates to accurately calculate the sales tax liability for each state. The system then registers users in the correct states and remits what a company owes in sales tax.
The Benefits of Using Kintsugi
Using Kintsugi can help e-commerce retailers avoid costly penalties and fines associated with non-compliance. Moreover, by automating the sales tax calculation process, companies can save time and resources that would otherwise be spent on manual calculations.
Kintsugi’s Unique Approach
Kintsugi’s approach to landing customers is unique in the industry. The company allows potential customers to sign up for free and test out its services before committing to a paid plan. This not only helps build trust with potential customers but also provides a valuable service that sets Kintsugi apart from its competitors.
Raising Capital and Expanding Operations
Kintsugi recently raised an additional $4 million in capital led by Airwallex, which valued the company at $80 million post-money. The company plans to use this funding to expand its operations into new markets, including Canada and Europe.
The Vision of Pujun Bhatnagar
Pujun Bhatnagar, co-founder and CEO of Kintsugi, has a vision for revolutionizing the sales tax compliance process. As someone who comes from a background in taxation (his father and grandfather both worked in taxation), Bhatnagar understands the complexity and frustration associated with sales tax compliance.
The Problem of Sales Tax Compliance
Sales tax compliance is not just a problem for e-commerce retailers, but also for consumers. When companies are non-compliant, they may pass on the costs to consumers in the form of higher prices or reduced services.
Kintsugi’s Solution
By automating the sales tax calculation process and providing accurate and timely remittances, Kintsugi can help e-commerce retailers avoid costly penalties and fines associated with non-compliance. Moreover, by making sales tax compliance easier and more transparent, Kintsugi can also improve consumer trust in online transactions.
Conclusion
Kintsugi is revolutionizing the sales tax compliance process for e-commerce sellers. By using AI technology to simplify sales tax calculations and automate remittances, Kintsugi can help companies avoid costly penalties and fines associated with non-compliance. As the company continues to expand its operations into new markets, it is clear that Kintsugi is here to stay as a leader in the sales tax compliance industry.
Additional Reading
For more information on Kintsugi and its mission to simplify sales tax compliance for e-commerce retailers, visit their website or check out the latest news and updates on TechCrunch.
