December 5, 2023

State and local governments collected approximately $137.7 billion in sales taxes in the first quarter of 2022, a 17 percent increase from the $117.7 billion collected during the same period in 2021, According to the US Census Bureau.

As Rohit Bhadange, Co-Founder and CEO zampExplain that each state, county, and city has a different tax jurisdiction and businesses must comply with its laws, making More than 12,000 tax districts.

they have to do it because South Dakota v. Wayfair Supreme Court Decision Enacted in 2018, it requires online sellers to register for a sales tax license and then collect and pay sales tax in each jurisdiction.

Sellers do this when they meet both of the following laws: the physical nexus law, where the seller will have a physical presence in the state through employees and warehouses, and/or the economic nexus law, where the seller exceeds income and/or transaction thresholds for the state.

Even more difficult to comply is when districts update their rates and rules frequently. That’s why Bhadange, Edward Lando and Clete Werts founded Zamp in 2022 to develop an end-to-end platform to manage the sales tax lifecycle of e-commerce, enterprise resource planning and marketplace platforms, including relationship monitoring, product Top-tier tax calculation, registration and filing.

Bhadange told TechCrunch that businesses using current software options can spend as many as 500 hours a year maintaining compliance. Online sellers can implement Zamp through an integration or API and use it to calculate and aggregate sales tax across multiple sales channels, while Zamp monitors and communicates when sellers need to file.

Zamp Sales Tax Software Clete Werts, Edward Lando, Rohit Bhadange

Zamp co-founders, from left, Clete Werts, Edward Lando and Rohit Bhadange. Image credits: zamp

Bhadange and Lando both worked at former seed investment firm Pareto Holdings, while Werts and other team members were the first employees of Stripe-acquired TaxJar and Vista-acquired Avalara, as well as former state auditors, sales tax specialists and research specialists.

Zamp works with companies like Stripe, Vista, Anrok, and Taxdoo to provide tax compliance solutions for businesses. What sets Zamp apart from its competitors is that it offers the service through a single SaaS fee, rather than making customers have to learn or manage the software themselves, Bhadange said, which not only allows customers to return hundreds of hours spent on filing throughout the year.

“Clients don’t even believe they’re doing it accurately, so we’re their partner in tracking, monitoring and notifying them to make sure they’re always compliant,” Bhadange said. “We opposed any changes to keep our customers safe, and we even eliminated annoying transaction overage fees, which were a common pain point for our customers. We made our customers exempt from paying sales tax.”

The company is doing just that after closing more than $4 million in new venture funding earlier this year. The round included Valor Equity Partners, Soma Capital, Day One Ventures and a group of angel investors including Truebill’s Yahya Mokhtarzada, OpenGov’s Zac Bookman, Shutterstock’s Jon Oringer and Ripple CEO Brad Garlinghouse.

Apart from saying that Zamp has paying customers and a roster that includes Obvi, Sanzo, YumWoof, Gravity Grabber and Little Hunter, Bhadange said little about the company’s development over the past year. Zamp will use the new funding to develop and automate its solutions, hire new staff and prepare to support customers selling internationally.

“Our focus is primarily on developing automated solutions and providing a better experience,” Bhadange said. “We’re building a stronger team and freeing as many customers as possible from the burden of sales tax compliance.”