Invopop: Simplifying Sales Tax/VAT Compliance Globally
Are you a global software company struggling to keep up with the ever-changing local tax reporting requirements? Do you find yourself spending hours, if not days, on manual tax reporting tasks, taking valuable time away from your core business operations? If so, you're not alone. With the increasing trend of countries requiring businesses to report every sale to tax authorities in real time, it's becoming a major pain point for companies around the world. But fear not, Invopop is here to simplify sales tax/VAT compliance globally.
What is Invopop and How Does it Work?
Invopop is a San Francisco-based startup founded in 2021 by Sam Lown, a software developer and CTO founder of Cabify, Spain's first tech unicorn, and Juan Moliner Malaxechevarría, a Spanish-born industrial engineer and ex-BCG consultant. Invopop helps global software companies comply with local tax reporting requirements by offering an API that records every sale and reports it to the appropriate tax authority in the right format.
Their API receives the information of a sale in a simple open-source format and converts it to a locally-compliant invoice. It syncs with tax authorities' reporting requirements (e-invoicing), generates a custom-branded PDF invoice, and sends it to customers. Invopop also integrates with the company's stack (e.g. ERP, billing, payments, reconciliation) for a seamless experience. Invopop is already live in Colombia, Spain & Portugal, with many more countries coming soon, including Mexico, Italy, and Peru.
Why Invopop Was Built?
The co-founders of Invopop, Sam Lown and Juan Moliner Malaxechevarría, both experienced the challenges of complying with local tax reporting requirements firsthand. As co-founder and CTO of Cabify, Sam struggled to comply with e-invoicing requirements in LatAm, which became a nightmare as they expanded to multiple countries. Unable to find a global provider to solve this issue, he decided to build Invopop. On the other hand, Juan worked as a consultant in Mexico and was blown away by how complex the e-invoicing system was. When he learned this is becoming mandatory in Europe, he knew Invopop was needed!
Who Can Benefit from Invopop?
Global startups and scaleups, marketplaces and resellers, and developers and engineers can benefit from Invopop's services. If you need to comply with multiple tax authorities and want a single solution that just works everywhere, Invopop is your answer. If you need to issue e-invoices on behalf of your customers operating in different countries, Invopop is the only provider. If you need to build local or global e-invoices but hate to deal with XML and other text-based formats, Invopop has got you covered.
The Growing Trend of Local Tax Reporting Requirements
In the last few years, more than 15 countries have started to require businesses to report every sale to tax authorities in real time. This regulatory trend is catching up, as more than 20 countries will introduce this new regulation in the next 3 years. For instance, Germany, France, Australia, and China are among the countries that will make this mandatory in the near future. Failure to comply with local tax reporting requirements can result in hefty fines and penalties, which can hurt your bottom line and reputation.
The Problem Invopop Solves
The problem Invopop solves is the complicated and time-consuming process of complying with tax reporting requirements for every sale made by a company, especially in a global context. With the growing number of countries requiring businesses to report every sale in real time, it becomes increasingly challenging for companies to manage their tax reporting obligations efficiently. This is where Invopop comes in, providing a one-stop solution for global sales tax compliance.
Their API platform allows businesses to record and report every sale in the appropriate format to the relevant tax authority, making tax reporting a more straightforward process. With Invopop's solution, businesses no longer have to worry about keeping up with the latest tax reporting regulations in every country they operate in, as Invopop does this on their behalf.
Invopop was founded by Sam Lown and Juan Moliner Malaxechevarría, two experienced professionals who saw the need for a global solution to the increasingly complex and demanding tax reporting requirements that companies are facing worldwide.
Sam Lown is a software developer and entrepreneur who co-founded Cabify, Spain's first tech unicorn. He has experience in building and scaling successful startups and has firsthand experience dealing with the challenges of tax compliance in different regions. Sam's experience and technical expertise are critical assets to Invopop's success.
Juan Moliner Malaxechevarría is an industrial engineer with years of experience as a consultant at Boston Consulting Group (BCG). Juan has experience working with clients in different countries and industries, giving him a unique perspective on the challenges companies face when it comes to compliance. His expertise in strategy, operations, and finance is a valuable asset to Invopop's leadership team.
Together, Sam and Juan bring a unique combination of technical and business expertise to Invopop, allowing them to create a solution that not only meets the technical requirements of tax compliance but also the practical needs of businesses.
Why Invopop is Needed?
The need for Invopop's solution is clear. As more countries require real-time tax reporting, companies are facing an increasingly complex and time-consuming task. Compliance requires businesses to track every sale, generate invoices, and report the data to the relevant authorities in the right format, often in real time.
For startups and scaleups operating globally, this is a significant challenge. Compliance requirements can vary widely by country, making it difficult for companies to manage tax reporting in-house. In addition, many companies may lack the technical expertise or resources to build and maintain a custom solution for each market.
Marketplaces and resellers face their own set of challenges. These companies need to issue invoices on behalf of their customers, which can be a daunting task when those customers are operating in different countries, each with its own compliance requirements.
Finally, developers and engineers may need to build local or global e-invoices but may lack the expertise to do so. Many text-based formats, such as XML, are complex and difficult to work with, making it challenging to create compliant invoices.
Invopop's solution addresses all of these challenges. Their API allows businesses to track every sale and generate invoices in real time, in compliance with local requirements, with just one integration. This simplifies the process for companies, allowing them to focus on their core business rather than tax compliance.
The Future of Invopop
Invopop is already live in Colombia, Spain, and Portugal, and the company has ambitious plans for expansion. They are currently working on launching in Mexico, Italy, and Peru, with many more countries to come. As more countries introduce real-time tax reporting requirements, the need for Invopop's solution will only increase.
The company's mission to simplify global tax compliance is an admirable one, and the founders' experience and expertise make them well-positioned to achieve their goals. As more businesses turn to Invopop for tax compliance solutions, the company is poised for growth, and we can expect to see even more exciting developments from them in the future.
In conclusion, Invopop is a startup that aims to simplify sales tax compliance for global software companies by providing a single integration for global sales tax reporting requirements. With the trend of countries requiring businesses to report every sale in real time, Invopop's API offers a solution that syncs with tax authorities' reporting requirements, generates a custom-branded PDF invoice, and integrates with a company's existing tech stack.
Overall, Invopop is a startup with a clear mission, a valuable solution, and experienced founders. As more countries implement sales tax reporting requirements, Invopop's API could become an essential tool for businesses that want to avoid the headache of compliance and focus on growing their business.