TAXDOO and done: Navigating Minds, Market and Management

On Wednesday, 3. December 2025, the news had already leaked on LinkedIn. One day earlier, it had already appeared in a public e-commerce forum: TAXDOO will discontinue its VAT compliance services in their current form on 30. April 2026. Five months remain. The countdown is on.

On Thursday, 4. December 2025, the official statement followed in a blog article by TAXDOO itself. What does this mean? A pivot towards accounting. The name says it all: TAXDOO Accounting – “The smart solution for financial accounting in e-commerce.”

In Germany, initial assessments and a wide variety of opinions could be followed in the digital world. Things got heated. Commentators, employees and competitors spoke up. LinkedIn posts were written (and deleted). What also became clear was that the Hamburg-based scale-up had arrived in the VAT e-commerce market. The announcement of the change of direction was therefore emotional. Painful for some. Liberating for others.

Minds: Transformation necessary

Many commentators’ first glance was at the competition: how can a replacement for TAXDOO be found as quickly as possible? Even if the framework conditions for VAT compliance are eased in the coming years, the outstanding work must still be carried out properly by tax advisors and companies until that time (expected to be July 2028).

However, this question was certainly of secondary importance to another group of those affected, namely the employees of and minds behind TAXDOO. As part of this transformation, it appears that, in addition to the externally-facing product, a number of internal adjustments have also been necessary:

The first signs of an impending restructuring were already visible a month ago, with TAXDOO employees publicly announcing their intention to seek new opportunities. On the day of the official announcement of the reorientation, further employees also made public statements that they were looking for new jobs.

Public data reveals that of 120 associated TAXDOO members on LinkedIn, 18 are currently #opentowork. These mainly include employees from the areas of HR, tech and (partner) support. According to the latest official figures from 2023, TAXDOO employs 153 people.

However, the company does not appear to be looking for new staff at present. At the time of writing, there is no longer a careers section on TAXDOO’s new website.

And away from LinkedIn and the website? There are reports of up to 130 employees being made redundant.

However, there are no official figures as yet. The truth will probably lie somewhere within the range suggested.

Market: When framework conditions change everything

As already indicated, the reason for the changing VAT framework conditions is the European Union (EU). ViDA (= VAT in the Digital Age) is a planned regulatory change that is intended to significantly simplify VAT obligations in e-commerce by July 2028 through one-stop-shop structures. In future, VAT will be handled directly in the accounting system. This will eliminate the need for a separate, pure VAT solution, such as the one TAXDOO will continue to offer until the end of April 2026. If everything goes according to plan, which remains to be seen, TAXDOO’s former business model will be “dead” in two years and seven months.

It should be noted, however, that there are still more than two years to go before the simplification takes effect – a relatively long time in practice. Given the broad spectrum of opinions in the e-commerce bubble, there seems to be justified criticism that existing processes will now have to be mirrored by TAXDOO’s former competitors during the short transition period of five months. There is certainly no shortage of alternatives, but there may be a shortage of time available for smooth implementation. This will have to be a high-priority task for former TAXDOO customers, at the very least.

However, TAXDOO has already responded to this in a forward-looking manner, at least in part, and recommends Marosa, another provider of VAT compliance services in Europe, to its existing customers. Other alternatives include AccountOne, countX, dekodi X, Frienton, fybu, Pathway and TaxPilot.

On closer inspection, the general framework conditions mentioned at the outset are actually changing for the better across society as a whole. Unfortunately, this does not mean that parts of society – in this case TAXDOO, its employees and, in the medium term, probably other competitors – will not face negative consequences.

Similar problems await do-it-for-me and do-it-yourself providers in the German income tax sector as soon as the state embraces automatic assessments for the general public, as is already the case in other parts of the EU.

Management: Roll with the punches

TAXDOO managing directors Dr. Roger Gothmann and Christian Königsheim found themselves caught between these two poles (minds and market) and, with the backing of investors such as Accel, had to make the best decision for all those directly and indirectly involved. They apparently opted for early transformation rather than outright capitulation. That takes courage.

From the management’s perspective, many public reactions were certainly to be expected. An open approach to uncomfortable reactions was helpful.

Should third parties have anticipated this transformation? Looking analytically at TAXDOO’s acquisition of accountDigital in May 2025, the subsequent rebranding in October 2025 and the regulatory outlook for 2028, it was possible, but difficult. Without concrete insights into TAXDOO’s strategy, this kind of change of direction was certainly not easily foreseeable from the day-to-day business of many customers.

Now, however, it is important for all sides to look ahead. Former employees may find refuge with previous competitors. Customers must act quickly and change their established processes. TAXDOO itself must prove itself once again in the competitive AI accounting market and, if necessary, regain lost trust.

A wealth of experience and “Skin in the Game” will certainly help to find the most acceptable and practicable way out of this increasingly difficult VAT compliance market. There should be enough of that. For the German TaxTech scene, a failed pivot by TAXDOO would otherwise be a bitter loss.