eBook

The Role of Tax and Compliance In Your SAP Transformation Strategy

The Role of Tax and Compliance in Your SAP Transformation Strategy

Did you know: In a recent survey conducted by SAPInsider of 138 members of the finance and tax community, 64% percent of respondents were expecting to increase efficiency by implementing tax technology innovation?

Tax technology innovation is a top priority for SAP customers, driven by interconnected factors. Tax has also taken on an increased importance in the ERP transformation process, largely due to the increased complexity of compliance on a global scale.

Throughout this guide, we will provide answers to the most common inquiries we receive from customers who are going through their own SAP transformations. Download the e-book to learn how you can best navigate your own ERP and tax engine implementations.

SAP ERP Transformation eBook

Download the guide today to ensure you are on the correct path.  

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Report

IDC MarketScape 2024
European Compliant E-Invoicing Vendor Assessment

Sovos has been recognized as a Leader in the 2024 IDC MarketScape for European Compliant e-Invoicing solutions.

Gain deep insights into the rapidly changing landscape of e-invoicing in Europe and see how Sovos can help your business navigate the complexities of compliance.

The European e-invoicing landscape is undergoing a transformative shift as new regulations reshape how businesses manage VAT compliance and reporting. As more countries implement mandatory e-invoicing requirements, staying ahead of these regulatory changes is essential for businesses operating across borders.

The 2024 IDC MarketScape report provides a detailed analysis of the key e-invoicing trends that will define the future of compliance in Europe, including:

  • Diverse B2B E-Invoicing Mandates Across Europe 
    Discover how the EU’s VAT in the Digital Age (VIDA) initiative is reshaping VAT compliance, enforcing real-time reporting, and helping combat VAT fraud. 
  • Expansion Beyond Traditional Use Cases 
    Learn how e-invoicing is evolving into a powerful tool for governments to gather real-time data on industry operations and influence national economic metrics, like GDP. 
  • E-Invoicing as a Driver for Process Automation 
    See how businesses are leveraging e-invoicing to streamline financial workflows, automate processes, and improve accuracy, unlocking significant efficiencies beyond compliance. 

Additionally, dive into the critical technological advancements shaping the future of e-invoicing systems, including the shift toward system consolidation and the growing role of artificial intelligence (AI).  

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Why Sovos?

As a Leader in the 2024 IDC MarketScape for European Compliant E-Invoicing Solutions, Sovos is the trusted partner for both multinational enterprises and SMBs when it comes to managing invoicing compliance and tax reporting. Sovos’ powerful S1 cloud platform offers a fully scalable solution designed to streamline the entire invoicing process — from automating accounts payable workflows to improving cash flow management through real-time tracking of invoice data and invoice status.  

eBook

The Role of Tax and Compliance In Your ERP Transformation Journey

ERP Transformation: The Role of Tax and Compliance

Tax has taken on increased importance in the ERP transformation process. This is largely due to increasing complexity of tax and compliance regulations on a global scale. 

Businesses today are looking to streamline their processes and standardize on a single source of truth for all their compliance data across all the regions in which they operate.

This process is often complicated by the fact that a lot of existing ERPs are older, on premise or more monolithic. Meaning they don’t have the ability to interface with best of breed third parties for areas such as tax compliance. 

Modern ERPs, however, have the ability, via API, to interface with other systems. This is serving as a catalyst for businesses to begin identifying which data need to be moved and which partner is best suited to meet their organizational needs.

This eBook is intended to help guide businesses through the ERP transformation process as it relates to tax and compliance. 

Key topics covered include:

  • ERP Cloud, hybrid and on-prem and what the future holds
  • The advantages to adding a tax engine to your ERP 
  • The unique qualities of tax and compliance systems
  • When to involve tax in our ERP implementation or migration
  • The role of the tax technologist and whether you need one
  • A maturity model for tax compliance and how to identify where you are as a business

Not including tax early in your ERP transformation process can prove troublesome and expensive down the road.

Download the guide today to ensure you are on the correct path.  

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eBook

The CFO’s Daily Checklist:
10 Key Strategies for Success

Logotype Oracle NetSuite - Sovos

The CFO role now requires a more strategic, hands-on approach. How can you maximize productivity and stay well-informed despite your tight schedule? Beyond the essential daily tasks, which activities are most effective in advancing the business and building your reputation as a strategic leader among executives and teams?

We consulted with CFOs and executive coaches to create a checklist for optimal efficiency. While you don’t need to complete every task daily, addressing a few regularly can significantly enhance your career and contribute to your company’s long-term success. Below are 10 key strategies for success.

Download Your Free Copy Now and start transforming your role today!

This is cosponsored by Oracle NetSuite. The company will process your personal information. Each party will be responsible for managing their own use of your personal information. 

By filling and submitting this form you understand and agree that Oracle processes your personal information in accordance with the Oracle Privacy Policy. Additionally details regarding Oracle’s collection and use of your personal information, including information about access, retention, rectification, deletion, security, cross-border transfers and other topics, is available in the Oracle Privacy Policy.

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eBook

Tax Automation:
Integrating Cloud VAT and E-Invoicing Solutions into Your SAP S/4HANA Migration

In today’s business landscape, integrating cloud solutions with ERPs is essential for efficiency and compliance. SAP customers facing challenges with on-premises tax solutions are finding relief through specialized third-party vendors. Streamlining VAT and e-invoicing processes during cloud migration and SAP S/4HANA adoption not only frees up teams but also reduces business risks. In this era of ERP transformation, staying agile and compliant is key to success.

In this eBook, Americas’ SAP Users’ Group (ASUG) and Sovos make the case that your ERP transformation is the perfect opportunity to free up resources by utilizing automation for tedious processes.

Readers will get a comprehensive view of:

  • The repercussions of inaccurate tax solutions
  • How a centralized global point of contact will be a source of business growth as e-invoicing mandates continue to spread
  • The importance of collaboration between tax and IT teams

Download now

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eBook

IRS Modernization

With over 40-years of tax law changes built into hundreds of legacy applications, the Internal Revenue Service has been embarking on an IT modernization journey for many years. With the introduction of digitization, the IRS began making significant strides these past few years in terms of modernizing some of their 800+ systems, bringing immense benefits to taxpayers and the tax authority alike.  

But with significant changes come growing pains. New systems often have bugs and associated quirks that keep it from functioning the way it was intended in the early stages of implementation.  

As a result, business users of IRS systems can struggle to access systems to file required information because of new authentication and administration processes. Elimination of paper return processing requires businesses to undertake projects to format data in specific electronic layouts for filing in multiple IRS systems. Adding to the hardships are tangential issues including new tax laws changing the tax reporting requirements and the continuing residual impacts of the COVID-19 pandemic.  

As the IRS modernize its technology over the next five to 10 years (and Congress continues to adopt new tax reporting requirements), businesses need to adopt transformation strategies to ensure they can scale tax withholding and information reporting processes to meet the new compliance requirements. 

This white paper walks through the most impactful transformations that organizations are experiencing due to IRS Modernization efforts. Additionally, it offers insights from our experts on how businesses can effectively strategize for future changes and maintain compliance.   

  • The Taxpayer First Act & Business System Modernization 
  • Top priorities for IRS modernization 
  • New IRS Systems – The change from FIRE to IRIS and the impacts for filing 
  • IRS’ Focus on electronic filing & What’s Next? 
    Helpful strategies for future changes 

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Learn more about IRS Modernization

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eBook

The Role of IT in the Face of New Regulations and Mandates

Read the eBook

As global regulations and mandates evolve at an increasingly fast pace, IT is now an important piece to the puzzle of meeting those standards. But what exactly does IT need to do? Why can tax no longer be an afterthought?  

KPMG and Sovos experts met to review how businesses and IT need to approach the urgency and complexity of governments moving to close the tax gap. Read the key points of their discussion now.  

Download the eBook

The push for tighter regulatory controls and more comprehensive mandates is expanding across all parts of the globe. For multinationals, this is especially important as the number of different compliance obligations required to operate is accelerating, and the timelines required to meet them are becoming tighter. 

Tax is now an always on function, not an afterthought. This means that data quality becomes an operational imperative – whereas in the legacy world of slow-moving periodic summary reports, many smaller errors or inaccuracies in invoices would go unnoticed. Due to their urgency and complexity, meeting the data requirements of new standards and mandates has become the domain of IT.

An organizational strategy that considers all aspects of regulatory compliance, ranging from internal planning for cross functional support, operational impact, resources and technology is critical in building a sustainable program that builds upon past successes while accounting for new mandates and challenges.

Don’t embark on this journey alone. There are a multitude of resources and expertise that can help you with every element of building a successful regulatory compliance program for your business. Focus on your own areas of expertise and bring in partners who are experts in all things compliance. 

Learn more about the Sovos and KPMG partnership

Sovos & KPMG: Partners for Navigating Global E-Invoicing Mandates

Learn more about the Sovos and KPMG partnership, and how your business can streamline global e-invoicing and digital reporting obligations.
Learn more

Podcasts: The Role of Data within Tax Administrations & Digitized Economies

Hear the roundtable discussion between Sovos and KPMG experts on the evolution of tax and how it impacts businesses.
Listen now
ebook

50 Unusual Tax Laws

eBook

50 Unusual Tax Laws

Who says that tax laws are boring? Each year, thousands of tax regulations are enacted, amended or taken off the books. Attempting to stay up to date on these changes can be stressful and doesn’t leave much time to appreciate the more peculiar examples.  

From taxes on beards to ice cream exceptions, get ready to be amazed by just how fascinating the world of taxes can be. In this eBook, Sovos’ regulatory experts rank the 50 strangest, quirkiest and weirdest tax facts that will leave you scratching your head.  

Download your complimentary copy to learn the tax implications of: 

  • Turning 100 in New Mexico
  • Buying a bicycle in Colorado Springs
  • Opting for fountain instead of bottled soda in Chicago
  • And so much more. 

Download now

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eBook

The Definitive Guide to Incorporating Sales Tax on Your S/4HANA Journey

eBook

Accounting for Sales Tax with SAP S4/HANA

Migrating to SAP S/4HANA can be a complicated process for your organization, but it also represents a tremendous opportunity to update and align your tax strategy to meet the challenges and needs of modern sales tax. The process of migrating enables better business flexibility, allowing organizations to adapt rapidly to changing business conditions. It can also provide real-time visibility into business operations, including a company’s tax strategy.

This eBook will take you through all things tax when it comes to your SAP S/4HANA migration and strategies you can implement to reduce the pressure on your finance and IT teams.

Download this eBook for more information on: 

  • The importance of migrating to the cloud for modern organizations
  • Integrating tax in your SAP S/4HANA migration journey
  • Using your S/4HANA migration plans to simplify tax 

Download now

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Sovos Unclaimed Property Newsletter: The UPdate

Newsletter

Your Trusted Resource In Unclaimed Property

Stay up to date on what is happening in the unclaimed property space with Sovos’ unclaimed property newsletter, the UPdate. Relevant unclaimed property news and insights are discussed, including compliance insights and articles from subject matter experts.

Sovos research found that there is nearly $77 billion in unclaimed assets. Businesses in various industries need to understand the basics to keep themselves compliant, especially as regulations and reporting requirements evolve. That’s why we created a newsletter to keep you informed.

This Summer 2024 issue includes articles on:

  • Primer on Canadian Unclaimed Property Laws
  • The Essential Guide to Unclaimed Property Compliance and California’s VCP
  • Returned Mail and Death of Owner in Banking and Securities
  • Idaho Adopts New Unclaimed Property Law

Always be informed with the Sovos UPdate. 

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eBook

What Is VAT in the Digital Age (ViDA)

and How Does it Impact My Business?

What Is VAT in the Digital Age (ViDA)?

In this eBook

  • What is ViDA? 
  • Data and the technology impact 
  • How and when is ViDA likely to impact my business? 
  • Where do businesses go from here?

The EU Commission has proposed the VAT in the Digital Age plan for fair and simple taxation. It emphasizes how tax authorities can use technology to fight tax fraud and benefit businesses while evaluating whether current VAT rules are appropriate for business in the digital age.

To help you keep pace with all of the rule changes being proposed and evaluated, Sovos has put together this eBook in conjunction with our regulatory experts. Inside you will learn about the key elements of ViDA, why it’s being proposed and its potential impacts on your business.

This VAT in the Digital Age eBook includes a deeper dive into the technology implications of ViDA and why technology is front and center of the discussion. It also includes a Q&A with world renowned regulatory expert, Christiaan van der Valk who breaks down some of the most frequently asked questions to date. 

This eBook is intended to provide you with a high-level overview of all things ViDA. As new developments become available, Sovos will be providing new content and analysis, so please bookmark our content library and check back frequently for updates. 

In the meantime, should you have any questions regarding ViDA and your businesses ability to adapt and manage any part of this program, don’t hesitate to contact us and speak with one of our regulatory experts or visit our regulary updated guide for VAT in the Digital Age.

View the full eBook

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eBook

Is It Time to Rethink Your E-Invoicing Strategy with SAP?

eBook

I’m an SAP user who needs a solution for e-invoicing. What are my options?

When it comes to implementing an e-invoicing solution, SAP customers are basically confronted with two options: build your own tools on SAP architecture or select an end-to-end provider.

These are two distinct approaches with very different paths towards your end goal.

Which is best for your business? This eBook explores the different paths available to you and the key considerations for each.

Issues covered and to be considered include:

  • Total Cost of Ownership (TCO)
  • What’s involved with the do it yourself (DIY) approach
  • The importance of getting e-invoicing right
  • Consequences of getting it wrong
  • What technology is available and how does it help?

No two businesses are exactly the same. Each has its own unique needs and access to different resources.

For SAP users it’s a big decision with the potential to have far-reaching impact across the business operation.

This guide is intended to provide you with the complete picture and overview of your options as you work to solve your e-invoicing dilemma.

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Month-by-month checklist

Tax Information Reporting: A Year-Round Process

Many organizations tend to concentrate on tax information reporting in the beginning of the calendar year to meet filing deadlines. However, splitting these tasks up into parts of a year-round process minimizes risk of error and ensures that your organization experiences a smooth reporting experience when filing deadlines approach. 

Download the checklist

Download the month-by-month checklist to stay on track for your own year-round reporting process.
Download now

VAT Digitization in Eastern Europe

A Quick Guide to E-invoicing and Real-Time Reporting Tax regulations in Eastern European countries are complex but that shouldn’t be a reason not to do business there. If you’re responsible for VAT compliance, this ebook provides key details of the varying VAT digitisation mandates and business requirements across the region:
  • Understand how to comply with the e-invoicing and reporting in Eastern Europe
  • Deep dives into Hungary, Poland, Romania, Serbia and Slovakia
  • Must-read for tax professionals and consultants

Get the ebook

Who should read this ebook?

Tax professional

  • Need to be up to date with Eastern European regulations
  • Understand system requirements for real-time reporting and e-invoicing
  • Prepare and future-proof for upcoming tax digitization

Consultancy

  • Ensure best practices for clients
  • Keep up to date with latest regulations and developments
  • Confidently navigate the tax landscape to help clients with planning

Written by tax experts and regulatory specialists

Tax administrations continue to insert themselves into the invoicing process or demand detailed records within a matter of hours or days of transactions. Many have introduced continuous transaction controls (CTCs)and are seeing the benefits of closing their country’s VAT gap and gaining granular, real-time or near real-time insight. Eastern Europe is part of this trend, moving forward rapidly with real-time reporting and e-invoicing initiatives.

The challenge of VAT digitization in Eastern Europe

Each Eastern European country has a different approach to CTCs. These differences could extend further as mandates evolve and businesses have to deal with new filing formats like SAF-T and real-time reporting to stay tax compliant. Understanding the varying demands of VAT compliance is key for any business operating in or looking to expand into the region. With this guide you’ll gain a greater understanding of the requirements across the region. Our deep dive into key countries will help you comply with VAT regulations now and prepare for upcoming mandates.

Take a look at what's inside:

Regional tax knowledge

Detailed country guide

How to expand with confidence

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What this guide to Eastern Europe e-invoicing and reporting compliance covers

Get our guide for a comprehensive picture of CTCs in Eastern Europe and the many requirements that vary country to country. This includes invoice format, connectivity, data requirements, how to submit, archiving, legacy systems, technologies and business processes-all of which need to be reconsidered and rewired to be compliant. We also conduct extensive reviews of key Eastern European economies as well as uncover what’s on the horizon in one of the most important countries in the region, Slovakia:

  • Continuous transactions controls –what are they?
  • Common clearance system features
  • Clearance regimes
  • Stay compliant with evolving CTC regulations
  • A close look at e-invoicing in the region
  • Romania
  • Poland
  • Hungary
  • Serbia
  • Slovakia
  • Compliance in Eastern Europe
  • How Sovos can help
Get the eBook

The CTC landscape in Eastern Europe is constantly evolving, with countries at different stages of their journeys.

The Czech Republic, Austria, Croatia and Montenegro all currently allow post-audit invoicing.

Countries that have already implemented CTC regimes (either e-reporting or e-invoicing) where paper invoicing is still possible include Hungary, Albania and Greece.

In some cases, such as in Slovenia and Bulgaria, there are CTC schemes planned but details have yet to be specified.

Others have outlined their specifications and implemented voluntary schemes. Our guide covers some of these countries, providing details about the scope, document flows, key requirements and timelines of their regimes.

Romania –A sneak peak

There are three requirements for taxpayers in Romania:

  1. Mandatory e-invoicing for B2G transactions
  2. Mandatory e-invoicing for high-risk products
  3. Electronic transport mandate

Taxpayers are required to use the Romania e-transport system to issue an e-transport document regarding the transport of high fiscal risk products before transportation of goods begins. This includes data regarding the sender, recipient, goods, places of loading and unloading and details of the means of transport and carrier.

GET THE GUIDE

Sovos provides a cost-effective, secure, global solution capable of withstanding disruption prompted by the worldwide CTC trend.

Our unique cloud solutions keep you compliant in 60+ countries and our tax experts ensure your business complies with the latest regulations and their requirements.

Market-leading 40+ year history in global regulatory monitoring and analysis

One vendor, one technical interface

Embedded in 60+ partners (SAP, Ariba, Coupa, IBM and more)

Simple API for plug-and-play interoperability

Evolves with your technology and process choices

Sovos’ VAT Compliance Solution Suite includes both CTC reporting and CTC e-invoicing as integral components of a fully scalable solution suite and includes Sovos Periodic Reporting, VAT Determination, SAF-T and Sovos eArchive.

Speak to our experts

Looking for more VAT compliance resources?

Annual Report: Trends 13th Edition 2022

Read the 13th Edition of Trends, our annual VAT report
Read the report

E-book: Managed Services for VAT Compliance

Learn more about the benefits of managed services in this e-book
Get the e-book

Webinar: A Practical Guide to VAT Compliance with JD Sports

Watch this free webinar about VAT compliance
Watch the webinar

SAF-T: An Introduction to the International Standard

Learn more about the international standard SAF-T in our guide
Get the e-book

Understanding European VAT Compliance

Your guide to making VAT compliance simple

There are many elements to understanding European VAT compliance; our tax experts continually review regulations, compliance rules and tax authority updates to understand VAT requirements across Europe and beyond. This e-book is the result of their research and is ready for you to download. It’s ideal for anyone involved in VAT compliance who is keen to learn more.

  • Helps you to understand VAT
  • Covers over 40 jurisdictions within and outside the EU
  • Download for free

Navigating cross-border and understanding European VAT compliance can be complicated. With requirements varying from country to country it’s important to be prepared for any upcoming changes to ensure continued compliance. The digitization of VAT continues, and our guide will help you understand and be ready for changes including SAF-T, e-invoicing and continuous transaction controls (CTCs).

Quick Links

  1. What this Guide to understanding European VAT Compliance covers
  2. What is VAT compliance?
  3. What is a VAT number in Europe?
  4. Need help with VAT compliance now? Get in touch
  5. More VAT compliance resources

Minimise compliance risks

Essential VAT Guide

Including latest VAT trends

What this guide to understanding European VAT compliance covers

The guide provides information on understanding European VAT compliance including some of the biggest trends in VAT – CTCs and e-invoicing. We also look at some of the more complex VAT requirements including Intrastat, supply chain management, the EU e-commerce VAT package and VAT for events – all in one easy to understand e-book:

  • What is VAT?
  • The global tax landscape
  • VAT reporting
  • What is SAF-T?
  • What are CTCs?
  • Optimising supply chain management
  • The EU E-Commerce VAT Package
  • What is Intrastat?
  • VAT for events
  • Global and Europe VAT reporting requirements
  • How Sovos can help
Get your free Guide to European VAT Compliance

What is VAT compliance?

VAT compliance means ensuring that VAT is applied and submitted in the correct format and by the relevant deadline to the relevant tax authority.

Each Member State has its own VAT invoicing and reporting requirements. Member States have been introducing e-invoicing, continuous transaction controls and SAF-T, all requiring specific data and formats to submit to the tax authority.

VAT requirements continue to change so it’s important to be aware of upcoming regulations and prepare in advance to remain compliant with the latest requirements.

VAT is a tax on final consumption, therefore it should not represent a cost to most businesses. VAT is more efficient and less detrimental to economic growth and competitiveness than other taxes

What is a VAT number in Europe?

To obtain a VAT number a company must register for VAT in the EU. Registering for VAT in the EU remains a complicated task, with each Member State having bespoke processes and procedures to obtain a VAT number. VAT reporting includes many elements, from registration to fiscal representation and filing returns. This guide explains the VAT reporting process, as well as upcoming changes that organisations should be aware of to remain VAT compliant.

Make European VAT compliance simple

Need help with VAT compliance now? Get in touch

End-to-end, technology-enabled VAT Managed Services ease your compliance workload and mitigate risk wherever you operate today while ensuring you’re ready to handle the VAT requirements in the markets you intend to dominate tomorrow. Get in touch with our sales team now.

Sovos Managed Services can help with a range of VAT compliance requirements, including:
  • Registration – guidance on country-specific registration requirements to avoid delays
  • Audits – minimise management time, fees and exposure to penalties or interest
  • Filing VAT returns – ensure VAT returns are in the correct format and include information required by tax authorities
  • Managing VAT changes – navigate changes to minimise risk and ensure continued compliance with the latest regulations and updates
  • Consultancy services – always on-hand to advise and help with queries of any complexity

Give yourself VAT compliance peace of mind.

Ease your VAT compliance workload and mitigate risk wherever you trade with Sovos’ complete end-to-end offering, enabled by our comprehensive software, helping you stay up to date and reducing the burden on your team.

Speak to our Experts

Looking for more VAT compliance resources?

Annual Report: Trends 13th Edition 2022

Read the 13th Edition of Trends, our annual VAT report
Read the report

E-book: Managed Services for VAT Compliance

Learn more about the benefits of managed services in this e-book
Get the e-book

Webinar: A Practical Guide to VAT Compliance with JD Sports

Watch this free webinar about VAT compliance
Watch the webinar
eBook

The Sales Tax and Digital Asset Dilemma: Advice for Legislators & Regulators

eBook

How digital assets and blockchain will impact sales tax

Creating sales tax requirements is hardly an easy task. Nor is meeting those requirements and staying compliant in an ever-evolving industry. But the continued push to digital technology makes both sides of that coin extremely difficult. 

States are working to understand the proper tax treatment of digital goods such as digital books, movies and music. When you add blockchain technology into the mix, bundling endless combinations of things (such as a ticket to a sporting event or beverages from a concession stand) adds even more complexity to the sales tax perspective. Furthermore, there is a sourcing challenge when it comes to sales tax and digital assets. With blockchain, wallet addresses do not identify the physical owners of assets. That aspect of security is part of the draw. 

Download now

Get the e-book

So, what do states need to keep in mind as they start implementing (and then creating legislation for) this technology? What exactly does it mean for sales tax? 

This ebook breaks down the current digital asset dilemma and discusses what legislators, regulators and businesses need to understand, such as: 

  • Definitions of key terms and how they relate to sales tax
    · What is considered a digital asset? 
    · What exactly is blockchain? 
    · Why is this important? 
  • How online marketplaces come into play
    · Ecommerce markets v. non-fungible token (NFT) marketplaces 
    · The unique sourcing challenge for digital sales tax 
    · Will cryptocurrency have an impact? 
  • The questions surrounding sales tax collection – digitally
    · When does someone possess a digital asset? 
    · How will states evaluate digital assets that can be exchanged for tangible property or services? 
    · Is tax better deferred until an asset is redeemed? 
  • Words of advice for regulators and legislators
    · Know what you’re regulating before writing statutes 
    · Understand – and appreciate – that this is a new sales channel. Ecommerce, brick and mortar and now, digital assets will all likely be standing side by side. 
    · Short of official guidance, there is the chance for abuse of technology – how can you avoid it? 

The application of sales tax on digital assets transferred on blockchain is becoming an increasingly important consideration for states. Before diving headfirst into blockchain technology and digital assets, states need to be sure they are adopting best practices. That can only be done with an accurate and comprehensive understanding of the industry itself. Sellers and marketplaces are ready to comply with reasonable and well-articulated sales tax compliance requirements – they just need to be given reasonable and well-articulated requirements to follow. 

eBook

The Changing Nature of State Reporting for 1099-NEC/MISC

eBook

Understanding the basics and changing nature of state reporting for 1099-NEC and 1099-MISC will help you stay compliant

State reporting requirements for 1099-NEC and 1099-MISC forms are growing increasingly complicated. Whether your business is undergoing mergers and acquisitions, working to keep pace with regulatory change or is just experiencing growth, knowing the basics of state reporting is crucial to maintaining compliance. 

Tax reporting for nonemployee compensation includes both federal and individual state reporting requirements. First, there is the Combined Federal/State Filing program (CF/SF), which is an IRS program that forwards information received on to the states that participate in the program (not all states participate). There is also the direct to state reporting (DSR) requirement. Filers must report to each applicable state, with the states providing the information requirements and reporting deadlines. How can your business keep pace with the details for each state in which it operates? 

Get the State Reporting e-book

This ebook compiles the basics of state reporting requirements for 1099-NEC and 1099-MISC, including the following:

  • A breakdown of the CF/SF program requirements versus the DSR requirements
    · Which states participate in each?
    · What are the potential downsides for each program?
    · If a state participates in one, does that mean they cannot participate in the other?
  • Discussion on recent changes to reporting requirements and what it may mean for certain states
    · How many states require 1099-NEC be filed to them directly?
    · Which states have issued guidance on the reporting requirements?
  • An explanation of common state filing issues
    · What are they and how can you avoid them?
    · Are all states facing the same issues?
  • Background on state backup withholding, including state-specific examples
    · What is the range of withholding rates?
    · Is it applied at the state or federal level?

The digitization of tax compliance and reporting is unavoidable. Additionally, businesses face increased filing complexity and lowered thresholds for e-filing. Small- to medium-sized organizations are especially seeing great challenges in meeting all 1099 form requirements. It’s important to understand that homegrown solutions or manual efforts cannot continue to keep pace with the changes.

The issuing and filing of 1099-NEC and 1099-MISC forms is an essential part of tax reporting. When you have a better understanding of the types of required reporting, why it is required and how those details impact your company, you can better achieve and maintain state reporting compliance.

 

Learn more about state reporting requirements and maintaining compliance.

Download the ebook
eBook

Streamlining Sales and Use Tax Compliance in Retail

eBook

What are the main sales use tax compliance challenges for retailers and how can they best overcome them?

DemandScience, on behalf of Sovos, conducted a survey to see what challenges retailers face related to sales and use tax compliance. By interviewing full-time finance and accounting decision makers at retail companies with annual revenues of $25 million to over $1 billion, Sovos garnered a better understanding of current sales tax obstacles and how organizations can address them.

Download now

Get the sales and use tax e-book

The survey found the following takeaways:

  • Barriers continue to remain even when businesses know they must improve their sales and use tax strategies. Nearly every person surveyed (98%) said there are problems in changing their company approach. Limited IT resources (34%) and leadership not being made aware of a business need for compliance process improvements (60%) were some of the top issues cited. 
  • 35% of finance and accounting decision makers said keeping up with the speed and volume of tax rate and rule changes is one of the most significant sales tax compliance difficulties their department faces. With finance pros often wearing multiple hats at their company, working to maintain compliance can lead to burnout. 
  • Sales tax compliance takes up more time than initially anticipated. The survey found that updating transaction systems to reflect rate changes (36%) and researching tax rates for applicable jurisdictions and states (35%) consumes the most time for finance and accounting teams. Additionally, 47% of respondents said their organization spends between four and five business days each month on sales tax compliance.
  • 56% of respondents said their department’s sales tax software solution(s) are not yet in the cloud. However, larger companies with revenues of $1 billion or more were more likely to have already adopted cloud solutions.

Omnichannel retailers need the right tools and processes in place to properly meet the ever-evolving sales and use tax filing and reporting requirements. Economic nexus was just the beginning, and it is hardly going to be the last challenge for businesses to overcome. 

Limited IT resources, budget constraints and lack of leadership buy-in can all impact retail organizations’ approach to sales and use tax compliance management. But those obstacles do not have to be insurmountable. Opting for a comprehensive and centralized platform with access to the latest forms, the ability to streamline audit activities and ongoing support for any technical issues is key for sales tax compliance.