Hey, thanks for tuning in to another Partner Interview at EcomBalance. At EcomBalance, we’re all about creating win-win partnerships where we are able to grow with other companies in the eCommerce space.
In this exclusive interview, we interview Nick Penev from hellotax. hellotax offers online VAT Registration & VAT Filings to reduce your workload in Europe.
Nick Penev is the Partnership Manager and webinar host at hellotax and Founder of XTREME POWER brands.
Nick co-founded Xtreme Power brands in 2010 – Private Label Supplement development company.
He and his partners developed and launched 20+ Private Label Supplement brands across Europe.
He exited his brands in 2020 and since then he has rebranded XTREME POWER brands into a Partnership as a service agency for ecommerce service providers.
He and his team helps these companies to grow through partnerships in the ecommerce space.
He has done or participated in 100+ webinars and events with partners in the ecommerce space.
We hope that you enjoy the interview and that it brings value to you as an eCommerce business owner.
Connor: Hey Nick, thanks for taking the time to chat with us today. As a company, one of our goals is to highlight our partners so that our clients can benefit where it makes most sense. To get started, can you give us a high-level introduction to hellotax and a little bit about how the company got started?
Nick: hellotax is a VAT compliance software and service for ecommerce sellers in Europe.
We remove the main blocker for brands to expand here by providing digital VAT registrations and filings and software which provides connections to all their sales channels and sales visibility across all the major markets in Europe for Amazon and Shopify brands.
Hellotax was founded in 2016 by 2 ex-Amazon sellers who met online in a Facebook group about VAT compliance. They both had a VAT related issue and teamed up to create a solution tailored for ecommerce sellers expanding in Europe.
The company has been fully remote since day 1 and now employees 70+ people across 4 continents.
Connor: Thanks for sharing that! Can you dive a bit more into the products and services that you offer to reduce the workload of entrepreneurs when it comes to VAT and taxes? Our audience is always looking for reputable companies that they can lean on for specific parts of their eCommerce businesses.
Nick: Our solution is really simple as we provide 3 services.
First we help the client to register their company for VAT in 1 or more countries.
Then our Account Managers collect the required documents and then we proceed with the VAT application. The VAT numbers are usually issued for 8-12 weeks.
Once the VAT registration is ready, the client needs to connect their marketplace account on Amazon or Shopify or to upload any additional transactions.
Our software then calculates and prepares the report which is then filled to the corresponding Tax Authority.
Then the client gets a notification in the software about the VAT return which they have to download and pay.
Each client has an account manager so hellotax is a software solution on the front-end backed up by managed services behind the scenes.
Connor: Jumping off of that…when you’re thinking about your ideal customer, who is that? Where are they selling online? Where are they located in the world? How much sales do they typically have in a year? If there’s any other qualities, please include them as well. We’re all about making introductions where it benefits both parties.
Nick: Our ideal customer is an e-commerce company selling on Amazon, Shopify or another marketplace in Europe. They can be based anywhere in the world but they need to be either selling or planning to sell in Europe. One average our clients sell $1m a year but our solution is tailored both for entry level and enterprise sellers like the aggregators and large agencies.
Connor: For our audience to truly understand what makes you stand out from other companies in the VAT registration and filling space, can you share a story of how hellotax truly helped one of its customers?
Nick: The company was started by 2 ex-Sellers and the first clients were friends of them and several of them are still using hellotax. The software allowed these first sellers to scale across Europe easier because hellotax helped them with the main blocker which is the reason for a lot of sellers never to get started in the first place.
Connor: As you and your company think about the next year ahead, what does it look like? Are there any specific initiatives that you’re working on as a team to better your product or service for your customers?
Nick: Our many goals in the next year is to set up as many integrations as possible because automation is the key to success to all of our clients. Currently we have Amazon and Shopify and we are planning to add Cdiscount, eBay and a few others which are demanded by our clients. The easier they handle VAT compliance, the easier it is for them to grow.
Connor: How about this…everyone loves a company’s growth story. We all naturally go through ups and downs as a company. What was one of the biggest challenges that the company faced in its growing stages?
Nick: One of the biggest challenges in the last 2 years was that we onboarded a lot of great partners in the industry and we had so many initiatives and opportunities that we could not hire enough talent to help us execute them. Bandwidth is a key issue with us as with many other companies as we are privately owned and there is no funding yet.
Connor: Thanks! Let’s talk some eCommerce! Where do you see the industry heading in the next 1-2 years? Any big changes that you’re predicting for the industry? How can eCommerce companies prepare for it?
Nick: The eCommerce industry experienced a huge leap and now it is slowing down a little bit. Some big players are not as “cash” heavy as before so they need to look at profitability and spend their funds wisely. Now the focus for companies should be on finding great partners and growing organically because it is not important what you can do with funding but what you can do without.
Connor: Changing gears a little bit…When it comes to bookkeeping and accounting, what do you think the biggest pain points for eCommerce business owners are? Feel free to speak from personal experience as well.
Nick: Bookkeeping and accounting are best buddies with VAT and to be honest it is hard to find partners like EcomBalance who are tailored for ecommece sellers.
A lot of accountants and bookkeepers are old-fashioned and they don’t understand how the ecommerce business works which is an issue for brand owners to expand their business.
Connor: Okay, here’s an open mic opportunity. If there’s one thing that you’d want the EcomBalance community to hear from you, what would it be?
Nick: I’ve been in the ecommerce industry since 2010 and one thing has not changed since then. Finding great partners and helping them grow their business and they’ll help you as well.
Never be afraid to ask for help and help when you are asked. Connect people and they’ll connect you as well. The said truth is that only 5% of my partners follow this rule.
Connor: As we close this out, I just have one more question. Where is the best place to find and follow you and the company online? Also, if you have one, is there any special offer that you’ll be offering to the community today?
Nick: To get started with VAT in Europe , you can visit our website here: https://hellotax.com/
To get in touch with me, feel free to connect on Linkedin here.
SPECIAL OFFER : 6 x Free VAT registration each worth 300 euro. Email me at [email protected] to claim that.
