Inovat modernizes tax reimbursement for streamlined international shopping
0Reported today on TechCrunch
For the full article visit: https://techcrunch.com/2019/12/11/inovat-modernizes-tax-reimbursement-for-streamlined-international-shopping/
Inovat modernizes tax reimbursement for streamlined international shopping
If you've ever traveled to Europe and purchased something, you're either likely aware that you can get the Value-Added Tax (VAT) reimbursed once you depart since it's actually only intended for taxpaying residents of the country wherein its charged. Whether or not you actually bother to get your VAT reimbursement might depend on how convenient it is to do so, and generally speaking, the process is paper-based and pretty annoying. Inovat is a startup that aims to simplify and digitize the process so that it's not such a pain, opening the door for people to get more of the money they're rightly owed.
Inovat accomplishes this with an app, available on mobile or on desktop, which employs optical character recognition (OCR) and machine learning to interpret receipts you upload or photograph, determine how much VAT you should be owed for your purchase, and prepare the requisite forms for submission to a customs officer or via an online customs filing form like those found at some airports.
Innovat co-founders Ilya Melkumov and Sonya Baranova came up with the idea because they themselves had encountered the problem of VAT remittance many times, as Russian and Ukranian nationals respectively, traveling within Europe and making purchases on their trips. Melkumov, a former professional e-sports player, met Inovat's CTO Igor Titov while playing games online, after the two struck up a conversation about getting VAT returns.
Melkumov and Baranova both believed the outdated process, which included high fees and often required paper forms or a lot of manual work to track receipts, could benefit from technologies that are helping improve and modernize other areas related to econom