One of the more ridiculous challenges of e-commerce nowadays is that every local government wants to jump on board and dictate their own sales tax to generate more revenue for their region. As of today, there are over 14,000 taxing jurisdictions in the United States with 3,000 product tax categories.
The average person selling fashion online doesn’t realize that the fur they added to a product now classifies their clothing differently and makes that purchase taxable in Pennsylvania… a state that doesn’t collect sales tax on clothing, otherwise. And that’s just one example… this endless list of tax laws result in millions of ways to accidentally charge the wrong amount of sales tax… and that could get your business in trouble.
The process of tagging each of your products with the right product tax code could take hours and generate lots of frustration for the person handling your sales tax. And it isn’t a one-time process. Every time you add new SKUs to your product mix, you have to make sure they are properly categorized.
TaxJar dug into the data, and, assuming all this research averages out to a minute per SKU, it would take a customer who sells approximately 3,000 SKUs 50 hours to categorize their products.
Emmet: Sales Tax Artificial Intelligence
TaxJar developed Emmet, the industry’s first artificially intelligent sales tax categorization robot. Built in-house by TaxJar engineers, Emmet applies machine learning to save TaxJar customers’ time by automatically classifying their products by tax code.
Since the beginning of 2020, Emmet has already exhibited a 90% success rate in accurately categorizing TaxJar customers’ products. With Emmet, classifying those 3,000 products only takes a few hours. And because it’s powered by machine learning, Emmet gets smarter and more accurate with each new product it categorizes.
Emmet simplifies the product categorization process, improves accuracy and provides our customers and partners the confidence of knowing their business is backed by the most accurate and advanced sales tax technology platform on the market.
Alec Carper, TaxJar Director of Engineering
Currently, Emmet helps TaxJar customers who categorize their own products within the TaxJar app. In the coming months, Emmet will work with TaxJar customers who use TaxJar’s SmartCalcs sales tax API or who collect sales tax via eCommerce sales channels (like Amazon, Shopify, BigCommerce, etc.)
TaxJar empowers eCommerce businesses to take charge of sales tax compliance. TaxJar completely automates sales tax calculations, reporting and filing and offers the most comprehensive partnership program for technology, service and tax advisors. In addition to their API, TaxJar has one-click integrations with NetSuite, Magento, Shopify, Walmart, Amazon, BigCommerce, Ecwid, WooCommerce, Squarespace, Square, and Etsy.