Hamburg-based Taxdoo raises $21M to develop its tax compliance platform for e-commerce
Taxdoo, a developer of sales-tax automation software, has closed $21 million Series A round led by London-based firm Accel, and its General Partner Harry Nelis was welcomed on the board. Visionaries Club, 20VC and existing investor High-Tech Gründerfonds also participated.
Founded in May 2016 by Christian Koenigsheim, Matthias Allmendinger, and Roger Gothmann, Taxdoo is a startup that is aimed to use automation to meet the tax and compliance burden faced by cross-border e-commerce companies.
“While it has become easier and easier to sell products across borders in Europe from a marketing and logistics standpoint, the resulting compliance obligations — like accounting or VAT — are a nightmare for sellers,” Koenigsheim told TechCrunch. “Handling these issues manually using spreadsheets is a recipe for disaster. To solve this problem, we’ve used our in-house expertise to automate the entire process.”
Thus Taxdoo’s platform collects relevant data from marketplaces and platforms such as Amazon, eBay and Shopify, online shops, and ERP systems on a daily basis and processes it in line with international VAT regulations, respective of financial authorities through an international network of VAT experts, which can then be transferred into seller’s financial accounting systems.
Taxdoo supports more than 1,000 merchants from the DACH region in selling compliantly across the EU to date. The fresh funding will help the company to continue internationalising its product to assist more sellers from across and outside the European Union, as well as implement new accounting and compliance solutions.