Colorado Makes Sovos Compliance Only Integrated End-to-End Sales Tax Solution; Software Users Will Be “Held Harmless” for Tax Gaps

Sovos
August 4, 2016

This blog was last updated on August 4, 2016

Sovos becomes the first software provider to integrate a hold-harmless database with an approved e-file software solution application to help reduce the sales and use tax compliance burden on businesses by automating accurate tax calculation and state and local filing.

Boulder, Colorado, August 4, 2016 — Sovos Compliance, a global leader in tax and business-to-government compliance software, received certification of their address database from the Colorado Department of Revenue, guaranteeing accurate sales and use tax calculation on every transaction in Colorado and including a “hold harmless” provision for Sovos’ clients using its software. Companies can now use Sovos in order to navigate the challenging calculations involved in determining tax liability.

Colorado law allows the State to certify the accuracy of third party vendors’ databases that are used to determine the tax rates and boundaries of taxing jurisdictions. Often referred to as the “hold harmless” provision, this designation means Sovos’ clients will not be liable in the event that sales and use taxes are calculated incorrectly in Colorado and state-collected jurisdictions, because the State has confirmed that the address look-up and rates in the software are accurate. Access to solutions leveraging this certified database are available to clients today in Sovos products. In addition, Sovos will provide the public with the ability to research tax rates by address using this new certified database with an online tool scheduled to launch in August.

Colorado assesses a state-level base tax and over 220 local jurisdictions also assess sales taxes, some of which are state-administered and others are collected by these local entities. This local tax structure creates a complex web of overlapping tax jurisdictions, which can make it very difficult for businesses to know exactly which taxes apply at a given address. That means that companies operating in Colorado are spending a lot of time and money staying compliant with the state’s varied sales and use tax laws, instead of directing their resources to drive business growth initiatives. In addition to enabling easier compliance by these companies, this certification assures Sovos’ clients that sales and use tax is determined correctly on every transaction in the state.

In November 2015, the Colorado Office of the State Auditor released a Performance Audit Report of the Department of Revenue for local sales taxes, finding that the department could improve its performance by “obtaining a geographic-information-system (GIS)-based mapping application…that is capable of plotting business site addresses and determining applicable sales tax jurisdiction and corresponding GenTax location codes.” The Department of Revenue has tapped into the state’s strong software and technology industry to create this mapping application at no cost to the state. As a result of private-public partnership with the State of Colorado, Sovos has created this jurisdictional database and will deliver the GIS-mapping application as part of their ongoing commitment and collaboration to help the Department of Revenue improve its performance and service to the taxpayers of Colorado.

“The Colorado Department of Revenue is committed to making it easier for businesses to understand and stay compliant with the State’s sales and use tax laws. We take the findings of the Office of the State Auditor seriously and have found a cost-effective way to respond by leveraging the private sector expertise to develop this mapping function in a way that benefits all parties – businesses, customers, as well as the State and local jurisdictions who rely on this tax revenue to fund essential government functions,” said Eric Myers, Taxpayer Service Division Director, Colorado Department of Revenue.

“We’ve been impressed with the Department of Revenue’s actions to automate tax compliance in the state. This is a great example of how governments can help businesses thrive in their states by removing barriers to compliance,” said Matthew Walsh, vice president of tax at Sovos Compliance. “Sovos has been partnering with the State of Colorado for years, and we look forward to deepening this relationship. This certification gives our clients continued peace of mind knowing that our software is guaranteed by the Department to be correct.”

Business leaders can learn more about best practices for compliance with these laws directly from a representative of the Colorado Department of Revenue at SovosCon 2016 in Baltimore, MD, on October 18-19, 2016.

# # #

Visit www.Colorado.gov/tax to find out more about filing and paying sales and use taxes in Colorado. Resources are available at https://www.colorado.gov/pacific/tax/local-sales-use-tax-by-address and www.Colorado.gov/RevenueOnline to look up the local sales and use tax rates owed to the State of Colorado and state-collected jurisdictions.

Sovos Compliance is a global leader in tax and business-to-government compliance software, enabling businesses to grow globally by reducing the risks and costs associated with compliance in thousands of tax jurisdictions around the world. With a 35-year track record of success in compliance and the broadest library of tax rules and rates in the world, Sovos helps finance, tax and HR professionals in 4,500 companies, including half of the Fortune 500, stay ahead of complex and fast-changing government regulations. The company’s compliance platform integrates with a wide variety of business applications, providing the control and visibility required to manage global tax compliance activities. Based in Boston, Sovos has offices throughout North America, Latin America and Europe. For more information visit www.sovos.com.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
Share this post

Hungary Supplemental Insurance Premium Tax
EMEA IPT
July 11, 2022
Extra Profit Tax: An Introduction to Supplemental IPT in Hungary

This blog was last updated on October 28, 2024 Update 7 October 2024 by Edit Buliczka Hungarian Tax Office Updates IPT Declaration Form for 2023 The procedure necessary to correct an underdeclared premium figure in Hungary can be complicated. The complexity of a correction for return form 2320 has become even more challenging. Following a […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
The Insurer’s Guide to the 2025 Bond Project

This blog was last updated on November 4, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
New ViDA Proposal Set for ECOFIN Approval

This blog was last updated on November 1, 2024 The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform. The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 […]

what is peppol
E-Invoicing Compliance North America
October 29, 2024
What it is PEPPOL?

This blog was last updated on October 29, 2024 Peppol E-invoicing explained: What it is and how it works The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap. While many countries have introduced their own e-invoicing […]

remote sellers sales tax
North America Sales & Use Tax
October 28, 2024
Will Congress Act to Simplify Remote Seller Sales Tax Collection

This blog was last updated on October 29, 2024 When the United States Supreme Court ruled in 2018, that South Dakota’s law imposing sales tax collection requirements on sellers without in-state physical presence was constitutional, it did not grant states free reign. States are still responsible for ensuring that their sales tax requirements are manageable, […]

dtc shipping laws for craft spirits
North America ShipCompliant
October 23, 2024
Why It’s Time to Reform DtC Shipping Laws for Craft Spirits

This blog was last updated on October 23, 2024 While wine lovers have enjoyed the convenience of direct-to-consumer (DtC) shipping for nearly two decades, the craft spirits market is still not afforded the same access. Outdated and restrictive spirits shipping laws have kept the spirits industry from fully leveraging the benefits of DtC shipping, leaving […]