Taxdoo raises $21m for e-commerce tax compliance tech

E-commerce financial compliance platform Taxdoo has closed a $21 million Series A funding round led by global venture capital firm Accel, to drive international growth at the Hamburg, Germany-headquartered company.

There was participation in the round from Visionaries Club, 20VC and existing investor HTGF.

The funding will be used to hire more staff, increase R&D spend and expand customer support operations.

Accel’s Harry Nelis has joined the Taxdoo board following the funding round.

As businesses turn to the like of Amazon, eBay, Shopify and a wide array of other platforms to sell internationally, they are facing increasing complexity around VAT, accounting and other compliance requirements, with data siloed across multiple online systems.

This is where Taxdoo comes in as governments focus on potentially lost indirect taxation like VAT.

Taxdoo’s platform automates transaction-level data ingestion, tax calculations and filings across Europe, as well as the integration of financial and accounting systems.

Customers can collaborate with their tax advisors through the platform and reduce other compliance burdens, including Intrastat filings. “What used to take days of effort across error-prone spreadsheets and email is now automated and auditable,” says Taxdoo.

The company says it currently supports 1,000 merchants based in the DACH region, enabling them to “sell compliantly across the EU”. Taxdoo says it will expand in the coming months to “support all global sellers active in the EU market”, as well as introducing new accounting and compliance solutions within its SaaS platform.

Additionally, Taxdoo intends to triple headcount to more than 150 by the end of 2021, predominantly hiring Hamburg-based engineering, sales and marketing staff.

“Our goal is to contribute to seamless cross-border commerce in Europe and beyond, where companies are able to focus on their core business not on bureaucracy,” said Christian Königsheim, co-founder of Taxdoo.

Harry Nelis, partner at Accel, said: “With a booming e-commerce landscape and companies of all sizes looking to sell their products and services internationally, we see an acute need for integrated financial and tax compliance.”

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