Christian Königsheim, Co-CEO and Founder
To trade without hassles is a dream for all merchants. Though it has become easier to sell products across borders in Europe from the viewpoint of marketing and logistics, dealing with the compliance guidelines can be a major obstacle. However, the entrepreneurial journey of an online merchant can be quite complicated. Using foreign warehouses, distance selling thresholds and complicated financial accounting being some of the primary complexities the merchants face, bringing hindrances to a smooth product selling experience. Moreover, managing these through manual workflows, including spreadsheets and excel sheets, siloed data across multiple systems, and so on make it even more tedious and invite inaccuracies and significant failures in the business.
Here comes Taxdoo to help online retailers focus on their core business without having to worry about VAT registrations and VAT filings throughout Europe. The founders of the company envisioned to help in leveraging automation to meet the tax and compliance challenges within the cross border e-commerce space to assist companies that sell on various marketplaces and platforms like eBay, Amazon and many more. The company’s solution integrates data into a single platform and utilizes their technology to automate the entire workflow, end-to-end, from the collection of data to filing of VAT returns in multiple countries and integrating the transactions into the seller’s accounting systems. Taxdoo provides numerous APIs to the most extensively used marketplaces, ERP and shop systems. Their system continually monitors and evaluates the client’s data to automatically recognize the tax liabilities across Europe.
Taxdoo solutions present multiple features, serving as a one-stop digital shop for online retailers and tax consultants.
Its data collection capabilities can automatically extract all the transaction data relevant to VAT for the most crucial marketplaces, ERP and shop systems through their varied interfaces. More importantly, it eliminates manual uploading, reducing human efforts as well as the VAT risks. Further, Taxdoo assists with assessment and monitoring where the transaction data is automatically evaluated for VAT purposes, such as delivery thresholds or foreign warehouse usage in other EU countries. This enables continuous monitoring of VAT obligations with no requirement of manual data analysis. Taxdoo data can further be exported to the seller’s accounting system allowing them to easily collaborate with local tax advisors. Prominent clients have mentioned how the company has helped them save substantial time and effort and sail through the VAT complexities. They could simply connect to their sales channels and pay the VAT without involving in any assessments or monitoring challenges. Taxdoo also submits VAT reports, returns, annual reports and other VAT returns, such as SAF-T in Poland, via their local tax advisors as per the client requests.
Adding further to the catalogue of Taxdoo features are the financial accounting capabilities. Through these, the transactions are evaluated for VAT purposes and prepared separately for every country. These can be browsed through the dashboard and transferred to financial accounting. Further, DATEV users can also use Taxdoo’s fully automated solution via DATEV-Export.
Clients are presented with multiple interfaces, including Amazon, Shopify, eBay, to name a few. These interfaces open doors for extensive usage of this VAT solution and offer immense benefits. For example, usage of these interfaces require no additional cost, the setup is easy— just a few clicks away—allowing users to seamlessly implement this interface. Moreover, it requires no uploading as the data is imported automatically through their interface, irrespective of whether it is self-dispatch or FBA.
As the online retailers become more and more buoyant, they are looking forward to selling their products internationally without any hindrances, the requirement for integrated financial and tax compliance solutions are increasing. This offers majestic opportunities for Taxdoo to thrive in this space, helping cross-border e-commerce companies to meet their business goals effectively.