Why we exist?
Every business use many data sets to verify and stay compliant with the regulations in the regions where they sell. They rely on multiple products in the process of generating an invoice . This includes many steps starting from business identity verification to location verification and tax compliance. The complexity increases multiple folds if they sell in multiple countries. It often becomes costlier and painful for Small businesses to stay compliant in the areas they operate.
Our goal is to make it easier for businesses selling across the world, to verify their users and generate invoices as per the local rules by providing them with tools to simplify and automate their invoice generation workflow. Our mission is to provide them a single product across all geographies and there by eliminating the need for businesses to integrate multiple tools for difference features.
When it comes to information on tax compliance, there exists a huge information asymmetry which makes it extremely difficult for small businesses and individuals to keep a track of it . Even the information available is highly technical and are not written keeping in mind the end consumers. Our aim is to create awareness about various topics in tax compliance in a language everyone can understand.
Why open source ?
The interesting thing about tax compliance is that almost all the information and the regulations are available online free of cost. But it’s not available in an easily consumable manner. One need to know where to look for this information and may need skill sets to correctly interpret it. Our primary job here is in packaging this information better by bringing all the data sources at one place.
Talking about VAT Validation, most of the information is already available in national databases ( VIES, HMRC etc). We want to make it easier to validate tax ID across the globe with a single API . However, to build it out and maintain it in a scalable manner for every country would be is incredibly hard and its quite expensive too and can only be achieved with the help of a community supporting it. Open source will not only increase access but also reduce the costs. This will also help us innovate relying on a community driven roadmap.
Why now ?
With internet services, geographical borders no longer creates a barrier for sales across the globe especially for software sales. The Increase in digitisation and globalisation has led to tremendous growth in the number of small businesses selling goods and services globally where they may not have any physical presence in the jurisdictions in which they operate.
Tax regulations are quickly evolving around the world and are getting digitised at a faster pace. Government authorities are becoming part of invoice generation process itself, be it identity verification or sending invoices. Deeper integration with tax authorities systems are most likely the theme in the upcoming years.
Tax compliance is not optional. The quickly evolving regulations keep the small businesses on their toes. It is essential that the small businesses with limited resources should spend time growing their product rather than putting their efforts in compliance. And hence LookupTax.
If you have any suggestions on areas or topics we need to cover, do reach out to us at support@lookuptax.com. We are actively seeking your inputs.
Let there be light. 🖖