Sovos Debuts Indirect Tax Suite to Overcome Global Compliance Challenges
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Key Takeaways
⇨ When expanding their geographic reach, companies must contend with the tax implications of operating in multiple markets.
⇨ Sovos recently introduced its Indirect Tax Suite as a part of its broader Sovos Compliance Cloud. The solution aims to help companies meet all their tax obligations, regardless of where they occur.
⇨ The Sovos Indirect Tax Suite automatically updates tax rates and rules for sales tax, VAT, and GST in nearly 200 countries worldwide.
Many SAP organizations are looking to expand operations into different markets. Whether that is across state lines or international, a more interconnected global economy has provided a new range of opportunities – but that also comes with challenges. When expanding their geographic reach, companies must contend with the tax implications of operating in multiple markets.
These tax regulations are constantly shifting, which the SAPinsider community has noted as a major business concern. The recent SAP S/4HANA Finance State of the Market Benchmark Report found that tax technology that helps track changes in tax regulations and their impact was listed as either important or very important by more than half (53%) of respondents.
Keeping current with global taxes
To address some of the tax issues holding back SAP organizations, Sovos recently introduced its Indirect Tax Suite as a part of its broader Sovos Compliance Cloud. The solution helps companies meet all their tax obligations, regardless of where they occur.
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“Companies operating across multiple markets – or looking to enter new markets – face three distinct challenges in meeting their indirect tax obligations: Variations in tax rates and rules; reporting cadences that can range from months later to real-time; and vastly different documenting and storage requirements for transaction data. Keeping up with all of this is a tremendous drain on resources, especially when using multiple, disconnected point systems for different obligations or in different countries,” said Sovos CEO Kevin Akeroyd.
Key features
The Sovos Indirect Tax Suite automatically updates tax rates and rules for sales tax, VAT and GST in nearly 200 countries worldwide. It offers key insights into exceptions to reduce the risk of audit. It also provides continuous transaction controls and e-invoicing compliance, which is becoming a standard requirement in dozens of countries.
Sovos provides standardization, automation and centralization to help companies meet their tax filing requirements more easily. The Indirect Tax Suite offers a dashboard with transaction insights, analytics and reporting to provide organizations with a single source of truth and analytics to operate more efficiently.
For SAP organizations, Sovos offers efficient integration and connectivity. The Indirect Tax Suite embeds compliance solutions directly into existing workflows that link directly with tax authorities worldwide.
Conclusion
With approximately 19,000 different tax authorities around the world, SAP organizations cannot afford to manually seek out shifting tax rates for each transaction. Companies must adapt to the rate of technological change and embrace automated solutions that reduce the risk of manual errors and allow tax teams to work more efficiently.
Sovos created its Indirect Tax Suite to help businesses grow and expand without having to worry about varying tax rules, reporting cadences or documentation requirements. By automating these key requirements, companies can focus on work that adds value to their enterprise.
