As organizations grow and expand their operations into new markets, the complexities of indirect tax compliance can increase dramatically. Businesses selling into multiple tax jurisdictions need a global tax management solution that provides enhanced tax determination and calculation capabilities to support complex product and service taxability requirements.
An example of increasing indirect tax complexity is the expanding sales and use tax regulatory environment in the U.S. Current economic nexus mandates reduce tax obligation visibility for businesses selling in the U.S. markets. As a result, the need for sales tax compliance automation that integrates with SAP S/4HANA to deliver robust functionality is becoming more apparent. Cloud-based sales tax solutions allow companies to focus on their core competencies by leveraging compliance automation functionality across tax determination, tax calculation, exception management, and other indirect tax-based processes.
When considering a cloud-based sales tax compliance automation solution, look for a provider with:
- Deep integration with SAP S/4HANA
- Robust product taxability configuration
- The ability to manage economic nexus for all tax jurisdictions
- The ability to handle multiple tax rates and exemptions
- Compliance with the latest sales and use tax regulations
The Sovos Global Tax Determination for SAP S/4HANA and S/4HANA Cloud can help organizations meet their sales taxes obligations and address compliance requirements effectively. SAPinsider recently sat down with Tim Roden, Solutions Principal at Sovos, to provide insight on this critical topic within our SAPinsider community.
Watch the video of the conversation here:
