In June 2016, Sovos Compliance acquired Invoiceware International, supplementing our Latin American regional compliance platform with its global solutions. Our shared clients, such as The Coca-Cola Company, Brown-Forman, and Sun Chemical are already benefitting from the centralized solutions provided by this alliance. While Sovos offers a variety of products that benefit businesses small to large, Sovos’ VAT solution is a particular benefit for Invoiceware’s enterprise clients. Here’s a look at how:
Worldwide, more than 160 countries manage a VAT tax regime, meaning that tax is calculated at each step in the supply chain. Businesses must calculate both VAT credits and taxes owed as they purchase supplies, add value and sell products. And no VAT system is quite the same; each country has separate rules, rates and timelines that organizations must comply with in each location in which they do business. Further, like compliance in Latin America,these rules rarely stay the same, with frequent changes that enterprises must stay on top of in order to maintain compliance. All of this boils down to a complex web of tax and compliance rules global enterprises must navigate for every single business location and transaction – and now more then ever, there is no room for error.
A recent study found that in 2014, European Union countries lost €159.5 billion in VAT revenue, and similar losses worldwide show what a major issue VAT collection is for countries. Governments are increasingly finding ways to enforce and maximize VAT payments to combat this challenge, making VAT compliance even more critical for enterprises. Often taking cues from Latin America’s electronic and automated processes, countries around the world are moving from random VAT checks to automated analytics that help to pinpoint errors and tax fraud. With a global focus on closing tax loopholes to increase revenues, VAT compliance has become more important and challenging than ever for global enterprises.
The synergy between global VAT compliance and Latin America’s e-invoicing and e-accounting mandates is one of the reasons that Sovos acquired Invoiceware, creating new opportunities for Invoiceware’s clients. Specifically, Sovos’ VAT solution helps to minimize the issues cited above, streamlining compliance with sophisticated data extraction, data accuracy, data analytics, reconciliation, reporting and workflow management functionality. Like Invoiceware, Sovos is committed to helping clients focus on business innovation through these required processes, and its VAT solution in particular enables clients to focus on process improvements while submitting accurate and compliant reports.
Clients using Sovos to automate VAT benefit from direct ERP integration, decreased processing times, seamless integrations, increased accuracy and consistency, a clear audit trail and automatic updates.