Europe may be growing together in many sectors. However, VAT remains a headache for expanding online traders who face different regulations in every country. Most companies have neither time nor money to keep track of each national regulation and risk hefty fines in the event of errors e.g. when documenting transactions. This is precisely the point at which the Hamburg-based Taxdoo enters the foray. The start-up is well aware of the challenges presented by diverging VAT regulations and has come up with a business model to resolve the problem.
Europe-wide VAT network
Taxdoo has explained how it automated the entire VAT process in an interview with the private Initiative Hamburg Startups: “We develop interfaces with Amazon, eBay or personal online shops to obtain all the relevant data automatically. The data is processed for taxation using algorithms and the dealer receives a daily overview of the liabilities. Then, our Europe-wide VAT network takes charge of the local liability reports based on our data.” Online dealers can subscribe to Taxdoo’s service including the daily aggregation, monitoring and forwarding of all the relevant data.
Winner of nextMedia.Elevator 2017
Taxdoo’s business idea recently won the nextMedia.Elevator 2017 contest for start-ups. And the company has been hailed as the most promising Hamburg-based start-up in the digital industry. During a five-minute, “business idea speed dating round”, the start-up triumphed over nine other finalists. “The winner won on every level and has a great solution that addressed an absolute pain point. The people behind that have exactly the right know-how,” said Dr. Heiko Milde, Chair of the Jury and representative of the Hamburgischen Investitions- und Förderbank (IFB).
Targeting Chinese and U.S. online dealers
The founders of Taxdoo have all specialised in tax and technology: Roger Gothmann worked as a “Special Value Added Tax Auditor” for over ten years and also at the Federal Central Tax Office. Dr. Matthias Allmendinger and Dr. Christian Königsheim have years of experience developing web applications. The three met while they were completing Ph.Ds at the Academic Department of Banking Administration and Behavioural Finance at the University of Hamburg. Taxdooo is presently eyeing European online traders as well as U.S. and Chinese dealers who wish to expand to Europe, according to Hamburg Startups.