We've improved how Kintsugi handles tax-exempt products synced from your integrations. Previously, products that were marked as exempt in your source system (e.g., your e-commerce platform or ERP) were automatically carried over as exempt in Kintsugi without further review. Now, you have control over whether Kintsugi should use its AI-powered product classification instead — helping ensure your tax liability is calculated accurately.
This article explains what the setting does and how you'll benefit from it.
Setting OFF (default for new accounts): Kintsugi's product classification AI will review and classify the product, even if it's marked as exempt in your source system. This helps catch potential misclassifications and ensures accurate compliance.
Setting ON: Products will retain their exempt status from your source system, bypassing Kintsugi's classification.
This setting is available to all users.
If you currently have exempt products synced from an integration, the setting is ON by default to avoid any disruption. You may keep this ON if you prefer, but we highly recommend switching it OFF.
For all other accounts (and any new accounts), the setting is OFF by default.
If you prefer enabling this setting, please keep the following in mind:
This setting relies entirely on the accuracy of your source data.
If a product is set up incorrectly or marked as exempt at the source by mistake, Kintsugi will not catch or correct that error.
Leaving the setting on may lead to inaccurate tax liability calculations if your source data is not properly maintained.
We recommend reviewing your product exemption statuses at the source before enabling this setting, just to be safe. If you are unsure whether your source data is accurate, we suggest leaving this setting OFF and letting Kintsugi's classification handle it instead.
To enable or disable the settings for this new feature, "Use Product Tax Exemption Status From Source," just follow these 6 simple steps:
Log in to your Kintsugi account.
Navigate to Configuration.
Select Settings.
Locate the toggle labeled "Use Product Tax Exemption Status from Source".
Switch the toggle ON/OFF to enable/disable the setting.
What Do We Recommend?
We highly suggest switching the setting OFF so Kintsugi's AI can review those products for accurate liability calculation and compliance.
Click Confirm to save your changes.
That's it. Kintsugi will now honor the exemption status from your source system for eligible products.
For further concerns, we're always here to help. If you can't find the answer you're looking for, just reach out to us using the chat in the bottom right corner of your screen.