The rapid rise of digitisation continues to transform companies’ business processes. Companies have either begun their digital transformation as a result of compulsory mandates or are voluntarily making the change. While digitalisation provides time, cost and workforce efficiencies, it has enabled greater cross-border business.
The increasing digitisation of tax has seen companies look to third-party service providers to access solutions to assist with taxation, continuous transaction control (CTC) compliance, tax reporting and more.
Things to consider when choosing a tax compliance provider
Companies should look for providers that can offer:
- Compliance with legal processes: With regulations and tax requirements constantly changing, it’s important to find a provider that can update and adapt their solutions and services to adhere with the latest regulations in the countries your company operates in.
- Data security: It’s important to find a provider with stringent data security standards. Ensure they have a secure and reliable infrastructure for storing data and they comply with any data security regulations your company must adhere to, to avoid any fines or unnecessary data breaches.
- Easy integration: Consider compatibility and easy integration with other software programs and business process platforms you use to avoid any issues.
- Fast and accurate solution: Just like with internal processes, service providers should be able to offer fast, reliable and accurate software and solutions to avoid any penalties resulting from late submissions or software malfunctions.
Advantages of a global service provider
Digitisation has powered the globalisation of the business landscape by improving cross-border business processes. Operating in multiple countries does however require an understanding of each tax authority’s specific requirements to ensure compliance.
This is where service providers can help.
- Expertise and knowledge across multiple authorities: Navigating tax can be complex, especially ensuring that knowledge is up to date for every country. For a company to do this internally it would require significant resources, expertise and budget. A service provider with an understanding of multiple tax authorities’ requirements can ensure compliance and reduce the burden on internal teams.
- A single global service provider increases efficiency: Working with a single global service provider makes it easy for companies to integrate all business processes. Systems are fully compatible with each other. Reporting processes are also completed in much shorter periods. Working with a global service provider enables companies to have more efficient business processes compared to their competitors both locally and globally.
Sovos serves as a true one-stop-shop for managing all e-invoicing compliance obligations across the globe. Sovos uniquely combines local excellence with a seamless, global customer experience. Learn more about our solution.