Texas is an origin-based state, which means sales tax is calculated based on where you, the seller, ship from rather than where your customer is located.

To apply Texas origin-based tax rules correctly, the Kintsugi platform now supports Physical Business Location as a recognized origin address. If you have a qualifying physical presence in Texas, here is what you need to know and do.

Why This Matters

Previously, Kintsugi used only your company address from Organization Details to determine the origin for Texas transactions. If that address was outside Texas, origin-based rules would not apply, even if you had a warehouse or office in the state.

Now, when you add a Physical Business Location in Texas through the Presence tab, Kintsugi will recognize it as your origin address and apply the correct Texas tax rates automatically.

What Qualifies as a Physical Business Location?

Not every type of physical presence in Texas triggers origin-based rules. Only the Physical Business Location category qualifies.

Note: A warehouse or third-party logistics (3PL) location that only receives forwarded fulfillment instructions does not qualify as a place of business under Texas Rule 3.334. Origin-based rules apply only when customer orders are received at that location, and Texas requires at least three orders received per calendar year for a location to qualify.

What You Need to Add

For Texas origin-based rules to apply, your Physical Presence entry must include all of the following:

• State (Texas)

• City

• Postal code

• County

A presence entry with only the state or country on file is not sufficient for local tax rate calculation.

How to Add a Physical Business Location

1. Log in to your Kintsugi account

   

2. Go to the Presence tab

   

3. Click "New" button

   

4. Fill in the information

   

   1. Country: United States

   2. Jurisdiction: Texas

   3. Category: Physical Business Location

   4. End Date: Leave blank if the presence is currently active.

5. Save your entry.

Once saved, Kintsugi will use this address as your origin for Texas transactions and apply the appropriate local tax rates.

Still Have Questions?

If you are unsure whether your Texas location qualifies, or if you need help setting up your presence, reach out to our support team. We are happy to help you get it right.

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