Understanding Nexus
Tax nexus determines where a business has tax obligations. There are two types:- Physical Nexus: Physical presence (warehouse, office, employees) in a jurisdiction
- Economic Nexus: Meeting sales thresholds in a jurisdiction without physical presence
Nexus determines tax obligations: Once nexus is established, businesses must register, collect tax, and file returns in that jurisdiction. Kintsugi tracks both types to ensure complete compliance.
Nexus & Registration Flow
Step 1: Create Physical Nexus
Endpoint: SDK Method -kintsugi.nexus.createPhysical()Access Method: SDK
Purpose: Establishes physical nexus presence in a jurisdiction (e.g., warehouse, office, employees). When to Use:
- When client has physical presence in a state
- Required before creating registrations for that jurisdiction
- Can have multiple physical nexus locations
country_code: ISO 3166-1 alpha-2 format (e.g., โUSโ)state_code: State abbreviation (e.g., โCAโ, โNYโ)- Additional physical presence details as required
- Physical nexus creates tax obligations in that jurisdiction
- Must be created before registrations for the same jurisdiction
- Can have multiple physical nexus locations
- Used to determine where tax collection is required
Step 2: Create Economic Nexus Registrations
Endpoint: SDK Method -kintsugi.registrations.create()Access Method: SDK
Purpose: Creates tax registrations for jurisdictions where the organization has economic nexus (meets sales thresholds). When to Use:
- When client meets economic nexus thresholds in states
- Required for tax collection and filing in those jurisdictions
- Automatically triggers product creation in this application
country_code: ISO 3166-1 alpha-2 formatstate_code: State abbreviationfiling_frequency:"MONTHLY","QUARTERLY","ANNUAL"start_date: When registration becomes effective (ISO 8601 format)
- Economic nexus is triggered by sales volume thresholds
- Each state/jurisdiction requires separate registration
- Filing frequency depends on state requirements and sales volume
- In this application, creating registrations automatically triggers product catalog creation
- Registrations enable tax collection and filing for those jurisdictions
"MONTHLY", "QUARTERLY", "ANNUAL", "ONE_TIME"
Example: Multiple State Registrations:
Automatic Product Creation: In this STaaS application, creating economic nexus registrations automatically triggers product catalog creation. This ensures products are ready for tax calculations immediately after registration.
Step 3: Get Registrations
Endpoint: SDK Method -kintsugi.registrations.get()Access Method: SDK
Purpose: Retrieves a paginated list of registrations for the organization. When to Use:
- Displaying clientโs registration status in dashboard
- Verifying registration details
- Managing registration lifecycle
- Client profile views
page: Page number (default: 1)size: Page size (default: 10, max: 100)- Optional filters:
state_code,country_code,status,filing_frequency
- Returns paginated results
- Use for displaying registration status in client dashboards
- Filter by state/country for jurisdiction-specific views
- Status indicates registration state (e.g.,
"ACTIVE","PENDING","INACTIVE")
Data Flow: Partner Platform to Kintsugi
Best Practices
- Check Before Creating: Verify if nexus/registration already exists before creating
- Handle Errors: Implement error handling for duplicate registrations
- Store Registration IDs: Save registration IDs for future reference
- Monitor Status: Regularly check registration status for changes
- Update Filing Frequency: Update filing frequency if sales volume changes significantly
- Track Thresholds: Monitor sales to identify when new economic nexus is triggered
Error Handling
Common Errors:- 409 Conflict: Registration already exists - check existing registrations first
- 400 Bad Request: Invalid state code or filing frequency - validate before sending
- 404 Not Found: Organization doesnโt exist - verify organization_id