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Global companies and those with global aspirations face a critical decision when evaluating their indirect tax compliance requirements and processes. Do they think globally or locally? Do they understand that indirect tax automation is not a luxury but an imperative? Do they view their automation decisions as a series of tactical choices or a single […]
Illinois is poised to change their sourcing rules again, trying to find their way in a world where states apply their sales tax compliance requirements equally to both in-state and remote sellers. With this tweak, they will effectively equalize the responsibilities of remote sellers with no in-state presence, to those that have an Illinois location. […]
Accurate sales tax determination is historically predicated on the seller knowing the precise street address of their customer. Since sales tax jurisdictional boundaries do not necessarily correspond to governmental boundaries (e.g., state, county, city) and don’t tightly align with zip codes, the only way to apply correct local rates is by knowing the pinpoint location […]
When most people think about “taxes” it’s likely that their thoughts first turn to “direct taxes.” However, in today’s economy, “indirect taxes” are becoming increasingly important in funding state and local governments. Indirect tax is also becoming increasingly complex, especially for businesses charged with meeting their indirect tax compliance obligations globally. In this article, we […]
In the dynamic landscape of finance, Chief Financial Officers (CFOs) play a pivotal role in steering their companies towards success. One crucial aspect of their responsibilities is tax compliance, and in a recent survey, we delved into how CFOs perceive and leverage tax technology. The survey revealed valuable insights into how companies manage tax compliance, […]
Ever since Louisiana eliminated its economic nexus transaction count threshold and rendered the Halstead Bead challenge to its remote collection requirements moot, the sales tax community has been anticipating whether any new litigation would spring up. Indeed, it has. This newest case was recently filed in the Illinois Independent Tax Tribunal by PetMeds Express. This […]
Sovos recently hosted a roundtable discussion to better understand how finance teams within the software industry can utilize artificial intelligence (AI). Experts from Brex, AvidXchange and Zuora joined Sovos’ Tim Roden, solutions principal, to converse on how AI and automation can be implemented for a modern – and compliant – approach to financial reporting. Here […]
We’ve previously discussed how important it is for the right tools, processes and people to be in place to ensure that there is a strong foundation for your finance team. But the tax function within the financial team also needs its own special consideration. Otherwise, a business could overlook certain regulations and requirements, especially as […]
As the U.S. economy teeters on a recession and budget shortfalls emerge, states begin searching for ways to expand sales tax revenue. Companies that offer subscription streaming services are increasingly finding themselves the targets of newly proposed taxes and attempts to expand and contort existing taxes to include streaming providers. What is the current sales […]
CFOs have a lot to consider, especially if their company recently acquired another organization. Are you fully aware of that business’ tax process? How do you know if their approach to exemption certificate management was compliant? With Sovos CertManager, ensuring a smooth tax process after an acquisition doesn’t have to be an unreachable goal – […]
Manufacturers often buy expensive stuff, including the enormous pieces of machinery and equipment necessary to efficiently run their production processes. In almost every state, manufacturers can purchase at least some items to be used in the production process free of sales tax or possibly subject to a reduced rate. However, the scope of available exemptions […]
Exemption certificate management can be an extremely time-consuming and costly challenge for businesses, especially as their organization expands into new jurisdictions. How can you ensure that all customer and exemption data is correct? Is any data missing? If your team is still utilizing a manual process, are you positive that nothing was overlooked? For growing […]
In addition to selling automated solutions, software-as-a-service (SaaS) companies often provide a variety of related services, including configuration, implementation, training, testing, bug fixes, technical support, and software enhancements. Each of these services could have sales tax consequences different from those applicable to the underlying software. Even more challenging, the rules can sometimes vary based on […]
The U.S. software industry is no stranger to evolving technology. But what about sales tax compliance? Can this segment keep pace with ever-changing regulations, while still meeting customer needs? Sovos and SG Analytics conducted a survey to better understand how software organizations are planning to improve sales tax management. Overall, 43% of respondents said they […]
Back in 1959, Barbie took her first plastic steps to become the cultural icon that she is today. Living in that Barbie world meant driving to your local toy store and physically purchasing the doll and accessories. Physical products like this were and still are subject to sales tax, meaning the consumer pays tax at […]
Businesses use software for everything, and for many companies, the aggregate cost of all their software licenses represents an enormous expense. When purchasers of business software acquire or renew their license, negotiations around the total price of the solution are often rigorous and sometimes even contentious. This is understandable as cost containment is a key […]