From 0 → 1
From 0 → 1
How I Validated Before Building:
A Complete Journey of Reinventing VAT Filing in 7 Months
How I Validated Before Building:
A Complete Journey of Reinventing VAT Filing in 7 Months


Project
Overview
Project
Overview
Most business owners file VAT only once or twice a year, and the official government tool is complex enough that first-timers really struggle with it. We saw an opportunity to make the whole thing far simpler, but the risk was real. VAT season only opens one launch window a year, so if we built the full product and got it wrong, we'd lose months with nothing to show for it. Rather than guess, I started by building a lightweight estimation tool, just enough to confirm whether people genuinely wanted this. They did.
That validation set up the harder challenge: two months to tax season, a single designer, and a product that had to handle 12 different filing situations, since people track their sales and expenses in so many different ways. To pull it off in time, I kept everything as simple as possible, building each feature in its most basic form and testing constantly with real users. Easy filings ran automatically, while complex ones were routed to real tax accountants. What follows is the full story of how it came together: navigating constant ambiguity to build the first mobile VAT filing service for SMB owners.
Most business owners file VAT only once or twice a year, and the official government tool is complex enough that first-timers really struggle with it. We saw an opportunity to make the whole thing far simpler, but the risk was real. VAT season only opens one launch window a year, so if we built the full product and got it wrong, we'd lose months with nothing to show for it. Rather than guess, I started by building a lightweight estimation tool, just enough to confirm whether people genuinely wanted this. They did.
That validation set up the harder challenge: two months to tax season, a single designer, and a product that had to handle 12 different filing situations, since people track their sales and expenses in so many different ways. To pull it off in time, I kept everything as simple as possible, building each feature in its most basic form and testing constantly with real users. Easy filings ran automatically, while complex ones were routed to real tax accountants. What follows is the full story of how it came together: navigating constant ambiguity to build the first mobile VAT filing service for SMB owners.
Role
Role
Sole product designer
Sole product designer
Led product design from early validation to MVP launch
Led product design from early validation to MVP launch
Team
Team
Product Managers
Product Managers
3
3
Tax Planners
Tax Planners
2
2
Marketer
Marketer
1
1
Front-end Developers
Front-end Developers
3
3
Back-end developers
Back-end developers
3
3
CS manager
CS manager
1
1
Timeline
Timeline
2022 July - 2023 January (7 months)
2022 July - 2023 January (7 months)
Key Skills Applied
Key Skills Applied
Product & Business Strategy
Product & Business Strategy
Led a design strategy balancing regulation, trust, and business viability
Led a design strategy balancing regulation, trust, and business viability
Lean UX & Rapid Testing
Lean UX & Rapid Testing
Ran hypothesis-driven experiments to confirm product-market signal
Ran hypothesis-driven experiments to confirm product-market signal
Project Management
Project Management
Shipped 3 complex products at once under tight timelines
Shipped 3 complex products at once under tight timelines
Impact
Impact
Validated Product-Market Fit
Validated Product-Market Fit
63,000
63,000
registered within one month of launch
registered within one month of launch
High user satisfaction
High user satisfaction
72.2
72.2
Net Promoter Score (industry avg: ~60)
Net Promoter Score (industry avg: ~60)
Background
3.3 (Three Point Three), South Korea’s leading
tax-tech platform with over 25 million users, planned to penetrate the growing SMB business market by offering a comprehensive tax solution for business owner by launching a VAT tax
filing service.
25mil+
user base
Blue Ocean Market

6.9m+
5.6m
2023
2018
Number of Small Businesses
Even before we built anything,
several challenges made this project
genuinely risky

Challenge 01
A basic MVP needs a complex tax system
VAT filing demands heavy upfront investment in integrations, tools, and support

Challenge 02
Product-market fit was unproven
Despite real pain points, owners could always fall back on the free government service

Challenge 03
User personas were highly fragmented
SMB owners are so diverse it was unclear how to deliver value for everyone

Challenge 04
Iteration was limited to tax season
We could only gather real feedback once or twice a year, creating a one-shot validation window
Strategy
Build fast, fail (learn) fast
through (pre)MVP
With high uncertainty and little room to iterate, I skipped long upfront research and validated our riskiest assumptions through a fast (pre)MVP, buying us one more iteration before release
2 weeks
2.5 months
3 months
Scale to MVP development
Research
(pre)MVP build & test
Early iteration with (pre)MVP
1 month
MVP release
Challenge
At its core, this was a
one-shot, high-cost launch
A failed launch would result in months of sunk cost with no reliable signal.
Reducing risk, therefore, became the core design challenge. How might we reduce risk in a one-shot, high-cost launch?
2 months
4 months
1 month
MVP release
Design & development
Research
High cost MVP, and no chance to test
So we split the project into two phases:
Phase 01
Building (pre)MVP to gather early results
Phase 02
MVP development for the real launch
Everyone had a different picture of our target user,
so I aligned the team with proto personas.
Different types of user confused the team and it became clear everyone had a different picture of our target user and what we should build. With limited time, I skipped heavy persona research and used proto personas instead, a fast, hypothesis-driven way to align the team on who we were designing for. It helped us quickly agree on our target users and turn early signals into concrete problem statements.
I looked for common behaviors, pain points, and business types, then turned them into 3 proto personas.

Proto Persona 1
Fast, cheap, no complexity

Proto Persona 2
File with confidence

Proto Persona 3
Avoid mistakes & high fees
Problem
Each team member had their own idea of the target user
Impact
Aligned the team on
who we were building for

01
Kim Cheapdeal, 30yr
Key behaviors
Dislikes using the Hometax (Korean tax system)
Very sensitive to price
Prefers things that are quick and simple
Reference insights
S1
I3
I2
I5
Needs/goals
Wants a super affordable and easy way to file VAT
Yearly sales
Low (below 50 mil. KRW)
Pain Points
Filing VAT feels frustrating and complex. Only wants the bare minimum at the lowest price
Key behaviors
Wants to verify every detail when doing tax but still overwhelmed with Hometax
Relying on online tutorials when filing the tax
Reference insights
S2
I3
I4
Needs/goals
Wants a trustworthy app that helps him check
and file with confidenceYearly sales
Medium (50-100 mil. KRW)
Lee Checker, 38yr
Pain Points
Spends too much time verifying everything manually, with no reliable support

02
Park Worried, 42yr

03
Pain Points
Feels trapped between the risk of costly mistakes and the burden of high, recurring expert fees
Key behaviors
Prefers experts to avoid costly mistakes
Constantly weighs self-filing vs expert help
Dislikes ongoing subscription commitments
Reference insights
S1
S2
S3
I1
I4
Needs/goals
Wants accurate filing and peace of mind
Prefers one-time payment over recurring fees
Yearly sales
High (over 100 mil. KRW)
Early Research Signals
Building (pre)MVP
1
From research, I realized SMB owners were
incredibly diverse. One solution wouldn't fit them all.
Online and offline businesses approach VAT differently
To see how different SMB owner groups approach VAT filing,
we ran a quick survey (n=56) to spot key behavioral patterns.
S1
Finding 1
Online businesses report lower annual sales than offline ones
Annual sales comparison:
online vs offline business
online
offline
< 30M KRW
43%
90%
> 30M KRW
57%
10%
S2
Finding 2
Offline businesses lean on tax accountants; online ones lean on Hometax
Tax filing method preferences
online
offline
37%
72%
Used tax accountant
31%
69%
Used Hometax (gov site)
S3
Finding 3
Offline owners are generally older than online ones
Age comparison: online vs offline business owners
online
offline
38%
15%
20-30yr. old
85%
62%
> 30yr. old
User interviews revealed diverse needs and pain points
We ran 14 phone interviews in one week. A synthesis workshop surfaced five key insights about our potential users.
PHASE 01
Building (pre)MVP to test.
The (pre)MVP lets us learn what matters most to users, and where the real value is, before shipping an MVP
Building (pre)MVP
We had too many assumptions, so I prioritized what to build and how to measure success.
2
With many shaky assumptions and little time before tax season, we needed a structured way to decide what not to build. I led a hypothesis-driven workshop to surface the product's key assumptions, then ranked them by risk and user value using Jeff Gothelf's Hypothesis Prioritization Canvas. For the top hypotheses, we set success metrics and validation methods, then turned them into the minimum features needed to test them in the (pre)MVP.
1
Making Hypotheses
Step 01
2
Prioritizing Hypotheses
Step 02
3
Defining Requirements
Step 03
Prioritizing Hypotheses
Which assumptions carry the most risk and value, and are worth testing first?
H1
H2
Ship & measure
H5
Don’t test & build later
H3
Discard
H4
H6
Test
High risk
Low risk
High value
Low value
Building (pre)MVP
3
We had to know if demand was real before building, so I turned the (pre)MVP into a market experiment.
Instead of launching a full filing system right away, I reframed the (pre)MVP as a market experiment to test our riskiest assumptions before the full build. I proposed turning it into a VAT estimation tool, so SMB owners could quickly check what they might owe based on their sales and expenses. That gave them immediate value while we validated key assumptions. I defined the minimum requirements to test the hypotheses and designed the (pre)MVP around them.

churn rate
CTR
Sign up rate
CTR
CTR
CTR
Sharing rate

(pre)MVP Experiment: VAT Estimation Tool
Experiment Result 01
Hypothesis 1 & 2
confirmed real market need for a mobile VAT reporting solution.
Implication
These results gave us the confidence to move into MVP development and invest in richer features.
H1
Hypothesis 1
Mobile service for complex sales/expenses drives engagement
Strong Demand
of SMB users want to use mobile service to file
landing page conversion rate
H2
Hypothesis 2
Satisfied users will sign up for early access and share
Early Traction
of the users apply to have early access to the product
avg. early signup rate
Experiment Result 02
Two early assumptions turned out to be wrong.
Users were happy to sync their data, and strongly preferred manual input.
Implication
These findings gave us confidence to support manual input and deeper data syncing, expanding
the MVP to serve
more SMB users.
H4
Hypothesis 4
Web users will avoid syncing their business data due to privacy issues
Low Privacy Concern
of users successfully sync their business data through simplified certification process
H6
Hypothesis 6
Manual sales input won’t boost usage in target users
Manual Input Preferred
of users want to input their sales data
of users manually input their sales as miscellaneous sales last year
Experiment Result 03
Key drop-offs in
the funnel showed us where to optimize.
Implication
These findings let us prioritize conversion optimization over other MVP work and run A/B tests on the critical drop-off points.

PHASE 02
From (pre)MVP to MVP.
MVP
Technical Feasibility
UX
Feasibility
Business
Feasibility
How do we cover diverse tax filing scenarios?
How do we convert users into revenue?
How do we help users understand and trust this unfamiliar service?
The (pre)MVP proved demand, but building a real product brought new complexity. With just two months before tax season, the MVP had to balance technical, UX, and business feasibility. I led the design decisions across all three to shape it.
With demand validated, the challenge shifted to building a viable product.
User Side | Mobile Service
Growing the (pre)MVP into
a real filing service in 8 weeks.
Weeks 1–2
Sales & expense input (12 methods)
Weeks 3-4
Flow iteration to support tax logic
Weeks 5-6
Payment & filing confirmation
Weeks 7-8
QA, polish, edge cases
The next challenge was fitting complex VAT filing features, including 12 filing methods, into an 8-week build window. As the sole designer,
I reduced each feature to its leanest workable form, keeping only the essential actions required for standard VAT filing.

(pre)MVP flow
Added MVP flow
Figma developers handoff compilation file


Internal tool
To process thousands of filings in weeks, attorneys, support,
and users had to be in sync. I designed that ecosystem.
User
Customer support
Users input sales and expenses to calculate their VAT
Payment and filling out personal info details
Waiting for final review
Submit additional docs when requested
Waiting for VAT filing submission
Tax Attorney
Review the tax case
Request additional information
Filing the tax case to the government
Supporting users & tax attorneys in every step and answering their questions
Main mobile service
Consulting service with tax attorney
Tax reviewing tool
Admin tool



Main mobile & consulting service
Direct consultation channel connecting users with tax attorneys for case-specific guidance
Tax reviewing tool
Internal workspace for tax attorneys to review cases, request documents, and finalize tax filings
Admin tool
Admin console for customer support to track cases, manage inquiries, and support all stakeholders
1/3
Technical Feasibility
Building The Tax
Review System
We couldn't automate every case, so I designed a hybrid system
where tax attorneys took the complex ones.
With demand validated by the (pre)MVP, the next challenge was enabling real VAT filing. But filing is full of complex edge cases and legal risk, hard to build in a 2-month timeline. With the PM, I weighed several infrastructure approaches to find the most viable one for the MVP.
OUR PICK
Covers a wide range of user cases with relatively lower development cost
High operational cost and requires building internal tools and workflows
Option 02
Hybrid model
Combine automation with human support, routing complex cases
to tax attorneys.
Reason
Mixing automation with human support let us test demand across the whole market, including complex cases, without hitting technical limits
Lower risk and cost, allowing us to focus on product quality
Excludes a large portion of potential users (around 70% of the market)
Option 01
Limited scope
Support only the users
the (pre)MVP already covers,
while we polish the UX.
Dealbreaker
An MVP should test real demand,
not polish UX
Most scalable and could significantly reduce operational cost
High risk of errors, leading to legal consequences or loss of user trust
Option 03
Full automation
Fully automate every flow so
even edge cases are covered
within the 2-month timeline.
Dealbreaker
Full automation is too complex now
and risks incorrect filings that
could break user trust
2/3
UX Feasibility
Refining the UX Through Constant Testing
Reinventing how people file taxes risked confusing users,
so I tested constantly to keep it intuitive.
Since the service introduced a new self-reporting workflow for SMB owners, usability risk was high. I ran iterative usability testing throughout development to keep the product aligned with users' mental models and intuitive as it grew more complex.
Development
Iteration
Tax season
Pilot UT
UT 1
UT 2
Pre-development UT
Check the flow fits users' mental models and expectations
Using Figma Prototype
3 Users
Post-Development UT
Find and fix critical usability issues before launch
Using STG Environment
2 Users
After Release UT
Learn how real users use the product during tax season
Using MVP in Production
1 User

UT recording for analysis

Usability testing script

Usability testing session
Usability Testing Results
Testing confirmed the flow was intuitive, caught issues
before launch, and revealed users need control to feel confident.
Read More
01
Pre-development UT
The flow is intuitive and matches users' mental models with no trouble
02
After release UT
Users may prefer transparent, verifiable results over simplified automation, to keep confidence and control
03
Post-development UT
Found 5 key usability issues

3/3
Business Feasibility
Finding What Users
Truly Valued
Every drop-off was a question about what users valued, so
I tested each one to prove the business was feasible.
In the (pre)MVP funnel, users dropped off heavily before the paywall. Since the MVP's goal was to measure real demand, conversion was the most critical signal. I focused on cutting friction at key decision points and ran targeted A/B tests to learn what users valued most.

1
Calculation Result
In the (pre)MVP, users dropped off sharply right after the calculation result. Many checked their estimated tax but never reviewed sales and expense details, sparking debate over whether they preferred speed to detailed verification. To settle it, I proposed a flow preference test.
2
Paywall
Since most users drop off here, I proposed A/B tests to find which value propositions cut hesitation and convert better, aligning our messaging with what users value and guiding future direction.
Flow Preference Test | Calculation Result
Do Users Want Speed or Control When Filing Taxes?
Read More
Flow 1
Conversion Rate
26.6%
Flow 2
Conversion Rate
41.1%
Winner

Drop-offs at the calculation result sparked a debate: should users review sales and expenses step-by-step for accuracy, or skip to the final result for speed? To answer it, I tested a detailed review flow against an express filing flow. Express won by a wide margin (41.1% vs 26.6%), showing most users valued speed over verification.
So we made express filing the default
and added a confirmation step
to keep users in control.
Value Proposition A/B Testing | Paywall
What Drives Users to Pay?
Read more

A
Conversion Rate
58.6%

B
Conversion Rate
63.6%
Winner
At the paywall, the key question became: what value proposition would motivate SMB users to proceed with payment? To answer this, I proposed an A/B test comparing expert review before submission with pricing tailored
for small businesses.
A boosted confidence in a small, high-revenue segment, but B won on overall conversion (63.6% vs. 58.6%), confirming that fair pricing was the main driver for our core small medium business owner users.
1
Comprehensive Sales and Expense Review
To prevent mistakes, users can check that their sales and expense data is complete before submitting their VAT report.
Expenses details page
Sales details page



2
Guided
Manual Input
Surveys and usability testing showed most SMB owners knew little about VAT filing, so we added a step-by-step input flow to guide first-timers and cut reporting errors.





SMB
VAT


Quick access to detailed sales and expense breakdown for meticulous users
Because users fear filing mistakes, the full VAT calculation is exposed for transparency so they can verify the result with confidence
Sales
₩25,000,000
Expenses
₩17,000,000
VAT season starts July 1!
Final Design & Main Features
Introducing Simplified VAT Filing Service for SMB Owners
The first mobile VAT filing service for SMB owners of every type, from meticulous reviewers to busy operators, for fast, accurate filing.
3
Bringing Web-Level Sales Management to Mobile
One of the 12 filing methods, giving users web-level control on mobile by syncing tax system data while still allowing edits and additions.



Adding the details
Selecting business partner
Hometax data synced





Usability testing showed many users don't finish filing in one session. To fit different speeds and workflows, they can resume where they left off, with the home screen guiding their next step.
File at your own pace.
4
Key Results
The launch proved our early validation true:
promising product-market fit.
(pre)MVP
Conversion rate
MVP
Conversion rate
48.6%
40.7%
38.9%
19.4%
21.7%
12%
7.78%
4.64%
Scraping
Estimation
Page
Result
Page
Payment
page (MVP)
Application page (preMVP)
Funnel conversion rate
MVP
(pre)MVP
Key screens conversion rate
(pre)MVP
MVP
Scraping
66.2%
73.8%
Estimation Page
61.6%
55.9%
Result page
88.7%
67.8%
Early access sign up
43.7%
-
Payment page
-
52.8%
First Opening Revenue
USD
2023/01/17~26
In less than 2 years the revenue will be 10X
Net Promoter Score
Similar service average NPS: 60
Average User Rating
Out of 5
Retrospective
What This Project Taught Me

01
Delay long term product decisions until assumptions become clearer.
One thing I learned from this project is how expensive premature product decisions can become when they are based on assumptions. Internally, there was an ongoing debate around whether SMB owners valued detailed VAT review or simply wanted to finish reporting quickly. Instead of committing to one direction too early, I proposed using the MVP itself to validate the assumption by giving users the option to either review before reporting or skip directly to reporting. In the end, nearly two-thirds of users prioritized speed, giving the team much more confidence in where to focus the experience moving forward.
02
Rough but frequent learning
beats perfect research in MVPs.
This project changed how I think about user testing. I used to believe users needed polished experiences before they could give meaningful feedback, but while building an MVP full of assumptions, I realized frequent learning mattered far more than perfect research. Even rough and unfinished user tests revealed where users felt confused, hesitant, or needed more trust. One unexpected outcome was how motivating it became for the team to hear users react to the product directly, creating stronger alignment and energy throughout development.
03
Fast-moving teams need
frequent communication more
than perfect documentation.To make the reporting system possible within a short timeline, I had to design across three different products while working closely with 3 PMs, each with their own communication and documentation style. As projects moved in parallel, context-switching quickly became part of the workflow, and I realized that in fast-moving environments, shared context and frequent communication matter more than perfectly polished documentation. Having lighter but more standardized ways of planning and handoff helped reduce friction and allowed teams to move between projects without a steep learning curve.
The Challenge
VAT season comes once a year and there's only one launch window with no room to test. If we shipped without validation, we'd burn months on an unproven product.
The Strategy
Build a (pre)MVP first and validate demand before committing to the full build.
Phase 01
Building (pre)MVP
Instead of building a full filing system, I reframed the (pre)MVP as a VAT estimation tool, letting users check what they'd owe based on their sales and expenses.
It delivered immediate value while testing our riskiest assumptions.
Results
82.4% wanted a mobile filing service
62.9% landing page conversion
12% early signup rate
From (pre)MVP to MVP
Phase 02
With demand validated, the challenge shifted: build a real filing product in 8 weeks, covering 12 filing methods.
Technical feasibility
I proposed a hybrid model, automating simple cases and routing complex ones to tax attorneys to cover the full market without the legal risk of full automation.
UX feasibility
I designed and ran 3 rounds of usability testing (pre-dev, post-dev, post-launch) to keep the flow aligned with users' mental models as complexity grew.
Business feasibility
I identified the two biggest drop-off points and led A/B tests to uncover what actually drove users to convert.
Final Design & Main Features
Introducing Simplified VAT Filing Service for SMB Owners
The first mobile VAT filing service designed for SMB owners of all types from meticulous reviewers to busy operators, enabling fast and accurate VAT filing.
Comprehensive Sales and
Expense Review
1
To reduce filing mistakes, users can review whether their sales and expense data is complete before submitting their VAT report.


















Sales
₩25,000,000
Expenses
₩17,000,000
VAT season starts July 1!
Guided Manual Input
2
Surveys and usability testing revealed most SMB owners had little VAT filing knowledge, so we introduced a step-by-step input flow to guide first-time filers and reduce reporting errors.


Bringing Web-Level
Sales Management to Mobile
3
One of the 12 filing methods designed to give users web-level control on mobile, syncing tax system data while allowing edits and additions when needed.


4
File at your own pace.
Usability testing revealed many users don’t complete VAT filing in one session. To support different filing speeds and workflows, users can resume where they left off, with the home screen guiding their next step



For the full process,
please view on desktop.





