Dispatch Guide and Invoice Supporting the Transport of Goods in Chile (2026)

Guide

This guide provides a clear overview of Chile’s updated regulatory framework for the transport of goods, following the introduction of Resolution 154 and the evolution of electronic tax documents. It explains how dispatch guides and invoices must work together to ensure traceability and compliance across logistics operations, especially when invoicing does not occur at delivery. With enforcement starting May 1, 2026, companies operating in Chile must align with stricter data, reporting, and control requirements.

Key topics covered include:

Regulatory framework and scope
When a dispatch guide is required, and key exceptions
New XML fields and mandatory transport data
Document traceability, contingency scenarios, and compliance controls
Audit, enforcement, penalties, and other key operational considerations

Download the brochure and get a clear, practical guide to navigating Chile’s new transport documentation requirements so you can stay compliant and avoid disruptions starting May 2026.

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Guide

A Guide to Navigating 1099-DA Compliance

IRS digital asset reporting requirements are here. Is your business prepared?

The IRS’s final regulations on digital asset reporting mark a turning point in how crypto brokers, digital asset platforms and taxpayers report transactions. With authorities expecting to process over 8 billion 1099-DA forms annually, organizations must ensure they have a structured and scalable tax compliance strategy in place.

Packed with expert insights from Sovos’ Wendy Walker, VP of Regulatory Affairs, this guide covers everything you need to know from informational reporting requirements to best practices for compliance.

Download a copy

Download the Sovos Guide to 1099-DA Compliance

Our 1099-DA Guide provides a clear, step-by-step roadmap to understanding and implementing the new IRS requirements for digital asset transactions.

The Current Landscape: A deep dive into the latest IRS regulations and compliance trends for digital asset reporting.
Compliance Challenges and Opportunities: Learn about the key challenges of 1099-DA reporting, including transaction volume, cost and scalability.
Practical Steps for Compliance: Discover best practices for implementing technology-driven solutions to streamline informational reporting and tax obligations.
Looking Ahead: Gain expert insights into future IRS regulations, the long-term impact of Form 1099-DA and how businesses can prepare for upcoming tax compliance changes.

Essential Insights for Crypto Brokers & Digital Asset Owners

As of January 1, 2025, businesses dealing with digital asset sales must now comply with Form 1099-DA tax reporting mandates, including detailed cost basis tracking, backup withholding and precise gross proceeds reporting.

Whether you’re managing tax compliance for a large exchange or an individual investor looking for clarity, this guide has the insights you need.

Crypto brokers and exchanges: Ensure your tax reporting process aligns with IRS Form 1099-DA requirements
Digital asset platforms and marketplaces: Understand compliance obligations for users and transactions across wallets, DEXs, and CeFi platforms
Investors & High-Volume Traders: Learn how Form 1099-DA affects your crypto tax reporting and potential tax liabilities

Sovos: Your Trusted Partner in Tax Compliance Solutions

At Sovos, we help businesses navigate complex tax compliance challenges with industry-leading reporting solutions. Our scalable technology ensures accurate, IRS-compliant reporting for crypto brokers, exchanges and digital asset platforms—helping businesses across the globe futureproof their tax reporting strategy.

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SAPinsider 2024 Buyer’s Guide: Finance Management

Guide

As the business landscape continues to evolve, financial systems need constant upgrades to stay competitive and drive innovation. At the same time, financial leaders are stepping beyond the board room, embracing strategic positions to steer their organizations toward increased growth and efficiency.

Many SAP users are turning to digital taxation strategies to meet product taxability requirements in real-time. This capability is beneficial for achieving compliance, taking advantage of new business models and pursuing product-related innovation.

Buyer’s guide highlights include:

Which platforms provide finance teams with the opportunity to replace, enhance or overhaul outdated processes, leading to improvements in efficiency, accuracy and decision-making.

How organizations are deploying automation tools to streamline operations and enhance efficiency.

The unique challenges faced by tax teams during mergers, acquisitions and expansions, and how SAP S/4HANA can be leveraged to ensure tax management strategies are agile enough to accommodate any planned or unplanned changes.

Buying tips for finance teams to make the move to SAP S/4HANA an opportunity to develop a single source of truth.

Download this buyer’s guide today to begin your journey towards greater organizational flexibility.

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Sovos Tax Information Reporting Guide: TaxWire

Guide

The TaxWire: Sovos’ Quarterly Guide to Tax Information Reporting and Withholding

Your trusted source in tax information reporting

Stay informed on the latest developments in tax information reporting with Sovos’ TaxWire quarterly insights guide. Our quarterly guidebook gives you timely updates and insights into important tax information reporting news, with tips, compliance insights and articles from our subject matter experts.

Regulatory changes are constant, and businesses need to understand the basics to keep themselves compliant, especially as regulations and reporting requirements evolve. That’s why we created a guide to keep you informed.

This edition of Taxwire includes:

Federal form & instruction updates
State modernization update
Related federal trends
Trends & topics to watch in Q3!

Download the Guidebook to learn more.

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State by State

Direct State Reporting Map

Filing Requirements and Deadlines

Direct state reporting for 1099s is a complex space, with changes happening annually for individual states and form types. New reporting requirements, Combined Federal State Filing Program (CF/SF) participation changes, form thresholds, and filing methods are just a few examples that each business must keep in mind when direct reporting their 1099s.

The below state charts show the filing requirement and deadline for each state’s direct reporting requirements.

Assumptions to note:

For states that participate in the CFS, the requirements in this document only reflect when a business is also required to file the return directly with the state.
For states that do not participate in the CFS, the requirements in this document reflect the returns that the business is required to file directly with the state.

Alabama (AL)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1) If AL withholding, or 2) If payment is $1,500 or more of AL taxable income	1/31
1099-INT	1) If AL withholding, or 2) If payment is $1,500 or more of AL taxable income	1/31
1099-K	Follow IRS guidelines. File duplicates relating to payees with an AL address directly with AL	4/30
1099-MISC	1) If AL withholding, or 2) If payment is $1,500 or more of AL taxable income	1/31
1099-NEC	1) If AL withholding, or 2) If payment is $1,500 or more of AL taxable income	1/31
1099-R	1) If AL withholding, or 2) If payment is $1,500 or more of AL taxable income	1/31

Alabama charges a penalty of $50/ return for not filing, inaccurate filings, and /or late filings. To learn more about Alabama’s direct reporting obligations, reach out to one of our experts.

Alaska (AK)

No Direct State Reporting Required

Arkansas (AR)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1) If AR withholding, or 2) If payment is $100 or more	1/31
1099-INT	1) If AR withholding, or 2) If payment is $100 or more	1/31
1099-K	1) If AR withholding, or 2) If payment is $2,500 or more	1/31
1099-MISC	1) If AR withholding, or 2) If payment is $2,500 or more	1/31
1099-NEC	1) If AR withholding, or 2) If payment is $2,500 or more	1/31
1099-R	1) If AR withholding, or 2) If payment is $2,500 or more	1/31

In addition to criminal prosecution, Arkansas charges a penalty of $25 to $250 and if found guilty of willfully failing to furnish returns as required. To learn more about Arkansas’s direct reporting obligations, reach out to one of our experts.

Arizona (AZ)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

Arizona charges 4.5% of the tax due for every month that filers fail to report withholding tax information by the due date. To learn more about Arizona’s direct reporting obligations, reach out to one of our experts.

Colorado (CO)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	2/28
1099-INT	If state withholding	2/28
1099-K	If state withholding	2/28
1099-MISC	If state withholding	2/28
1099-NEC	If state withholding	1/31
1099-R	If state withholding	2/28

To learn more about Colorado’s direct reporting obligations, reach out to one of our experts.

California (CA)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	CFS satisfies filing requirements	2/28
1099-INT	CFS satisfies filing requirements	2/28
1099-K	CFS satisfies filing requirements	2/28
1099-MISC	CFS satisfies filing requirements	2/28
1099-NEC	CFS satisfies filing requirements	2/28
1099-R	CFS satisfies filing requirements	2/28

California charges a penalty of $50/return up to $250,000 per year for failure to file or failure to file a correct information return. To learn more about California’s direct reporting obligations, reach out to one of our experts.

Connecticut (CT)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	Same as federal; and If payments to payees located in, or with locations in CT.	4/30
1099-MISC	1. For payments to residents of CT, even if no income tax is withheld. 2. For payments to nonresident individuals for services performed wholly or partly in CT, even if no income tax was withheld. 3. If state withholding	1/31
1099-NEC	1. To payments to nonresident individuals for services performed wholly or partly in CT, even if no income tax was withheld. 2. If state withholding 3. If the recipient is a CT resident (see CT website).	1/31
1099-R	1. For payments to CT residents, even if no CT income tax was withheld. 2. For all other recipients, the 1099-R is only required if CT income tax was withheld. If there is no state withholding, CFS satisfies requirements.	1/31

Connecticut charges a penalty of $50/ return for not filing, inaccurate filings, and /or late filings of Form 1099-K returns. Additionally, a penalty of $5 per form (up to $2k/year) is imposed on payers who fail to file Forms 1099-MISC, R, K, or NEC. To learn more about Connecticut’s direct reporting obligations, reach out to one of our experts.

Washington D.C.

Note: D.C. participates in the CFS (Combined Federal State) program, but still requires direct filing for all forms

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding or if payment reports $10 or more	1/31
1099-INT	If state withholding or if payment reports $10 or more	1/31
1099-K	If state withholding or if payment reports $600 or more	1/31
1099-MISC	If state withholding or if payment reports $600 or more	1/31
1099-NEC	If state withholding or if payment reports $600 or more	1/31
1099-R	If state withholding or if payment reports $600 or more	1/31

Delaware (DE)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State).

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	Not required to be filed
1099-MISC	If issued to Delaware resident OR if issued to non-resident for services performed in Delaware.	2/28
1099-NEC	If issued to Delaware resident OR if issued to non-resident for services performed in Delaware.	1/31
1099-R	If state withholding	2/28

Delaware charges a penalty of $100/ return for failure to file, with an annual max of $1,500,000. To learn more about Delaware’s direct reporting obligations, reach out to one of our experts.

Florida (FL)

Note: Florida does not participate in the CFS (Combined Federal State) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-K	Must be filed directly with state following federal threshold.	4/30

Florida charges a penalty of $1,000 per month for inaccurate or late filings, with an annual max of $10,000. To learn more about Florida’s direct reporting obligations, reach out to one of our experts.

Georgia (GA)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State).

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	2/28
1099-INT	If state withholding	2/28
1099-K	If required federally, then must be filed with GA. If no state withholding applies, CFS satisfies filing requirements.	4/30
1099-MISC	If state withholding	2/28
1099-NEC	If state withholding	1/31
1099-R	If state withholding	2/28

Georgia charges a penalty of $25/ return for failure to file. To learn more about Georgia’s direct reporting obligations, reach out to one of our experts.

Hawaii (HI)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	CFS satisfies all filing requirements.	2/28
1099-INT	CFS satisfies all filing requirements.	2/28
1099-K	CFS satisfies all filing requirements.	2/28
1099-MISC	CFS satisfies all filing requirements.	2/28
1099-NEC	CFS satisfies all filing requirements.	2/28
1099-R	CFS satisfies all filing requirements.	2/28

For more information about Hawaii’s direct reporting obligations, reach out to one of our experts.

Idaho (ID)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding.	2/28
1099-INT	If state withholding OR if required federally and source is Idaho.	2/28
1099-K	If state withholding.	2/28
1099-MISC	1) If state withholding or 2) If it was issued for transactions related to property in Idaho OR for services performed in Idaho .	2/28
1099-NEC	1) If state withholding or 2) If it was issued for transactions related to property in Idaho OR for services performed in Idaho.	2/28
1099-R	If state withholding.	2/28

For more information about Idaho’s direct reporting obligations, reach out to one of our experts.

Illinois (IL)

Note: Illinois does not participate in the Combined Federal State (CFS) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	1) Must be filed with state directly following federal threshold or 2) Four or more transactions exceeding $1,000	3/31
1099-MISC	Not required to be filed
1099-NEC	Not required to be filed
1099-R	Not required to be filed

Illinois charges a penalty of $5/ return for failure to file, with an annual max of $25,000. To learn more about Illinois direct reporting obligations, reach out to one of our experts.

Indiana (IN)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

Indiana charges a penalty of $10/ return for failure to file, with an annual max of $25,000. To learn more about Indiana’s direct reporting obligations, reach out to one of our experts.

Iowa (IA)

Note: Iowa does not participate in the Combined Federal State (CFS) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	2/15
1099-INT	If state withholding	2/15
1099-K	If state withholding	2/15
1099-MISC	If state withholding	2/15
1099-NEC	If state withholding	2/15
1099-R	If state withholding	2/15

Iowa charges a $500/form penalty for failure to issue 1099’s to recipients by the due date. To learn more about Iowa’s direct reporting obligations, reach out to one of our experts.

Kansas (KS)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	1) If state withholding or 2) If federally required	1/31
1099-MISC	If state withholding	1/31
1099-NEC	1) If state withholding or 2) If federally required	1/31
1099-R	1) If state withholding or 2) If federally required	1/31

To learn more about Kansas’s direct reporting obligations, reach out to one of our experts.

Kentucky (KY)

Note: Kentucky does not participate in the CFS (Combined Federal State) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

Kentucky charges a penalty of $10/ return for failure to file electronically. To learn more about Kentucky’s direct reporting obligations, reach out to one of our experts.

Louisiana (LA)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	1. If payment amount is $1,000 or more 2. If payment is made to a non-resident of LA AND 3. If payment is for rents or royalties from properties located in LA or if state withholding occurred.	1/31
1099-NEC	1) If state withholding or 2) Services were performed in LA 3) Service provider resides in LA	1/31
1099-R	If state withholding	1/31

To learn more about Louisiana’s direct reporting obligations, reach out to one of our experts.

Massachusetts (MA)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State). While MA participates in the CFS, MA still requires 1099s to be filed directly with the Department of Revenue.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Must be filed directly with the state following federal thresholds.	2/28
1099-INT	Must be filed directly with the state following federal thresholds.	2/28
1099-K	1) Merchant acquiring entities must report all amounts paid. 2) Third-party settlement organizations must report if $600 or more paid in calendar year.	2/28
1099-MISC	Must be filed directly with the state following federal thresholds.	2/28
1099-NEC	Must be filed directly with the state following federal thresholds.	2/28
1099-R	Must be filed directly with the state following federal thresholds.	2/28

Massachusetts charges a penalty of $100/ return for failure to file. To learn more about Massachusetts direct reporting obligations, reach out to one of our experts.

Maryland (MD)

Note: Maryland participates in the CFS (Combined Federal State) program, but as of the 2023 filing season requires direct filing with the state because it can no longer process files sent through CFS.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	Not required to be filed
1099-K	1) If state withholding or 2) TPSO’s must file following a $600 threshold	30 days prior to Federal due date
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If payment is $10 or more to a MD payee	1/31

To learn more about Maryland’s direct reporting obligations, reach out to one of our experts.

Maine (ME)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State). While ME participates in the CFS, ME also requires 1099s to be filed directly with the Maine Revenue Service.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1. When required to file electronically with IRS, you must file directly with MRS for ME residents and recipients of payments sourced to ME. 2.If ME income tax was withheld but not reported on 941-ME, you must file directly with MRS for all ME residents or payees who received ME source income.	1/31
1099-INT	1. When required to file electronically with IRS, you must file directly with MRS for ME residents and recipients of payments sourced to ME. 2.If ME income tax was withheld but not reported on 941-ME, you must file directly with MRS for all ME residents or payees who received ME source income.	1/31
1099-K	1. When required to file electronically with IRS, you must file directly with MRS for ME residents and recipients of payments sourced to ME. 2.If ME income tax was withheld but not reported on 941-ME, you must file directly with MRS for all ME residents or payees who received ME source income.	1/31
1099-MISC	1. When required to file electronically with IRS, you must file directly with MRS for ME residents and recipients of payments sourced to ME. 2.If ME income tax was withheld but not reported on 941-ME, you must file directly with MRS for all ME residents or payees who received ME source income.	1/31
1099-NEC	1. When required to file electronically with IRS, you must file directly with MRS for ME residents and recipients of payments sourced to ME. 2.If ME income tax was withheld but not reported on 941-ME, you must file directly with MRS for all ME residents or payees who received ME source income.	1/31
1099-R	1. When required to file electronically with IRS, you must file directly with MRS for ME residents and recipients of payments sourced to ME. 2.If ME income tax was withheld but not reported on 941-ME, you must file directly with MRS for all ME residents or payees who received ME source income.	1/31

Maine charges a penalty of $50/ return for failure to file. To learn more about Maine’s direct reporting obligations, reach out to one of our experts.

Michigan (MI)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	Must be filed directly with the state	2/28
1099-NEC	Must be directly filed with the state for MI residents or if state withholding.	1/31
1099-R	Must be directly filed with the state for MI residents or if state withholding.	1/31
1099-DA	Must be filed directly with the state	1/31

Michigan participates in the CFS (Combined Federal State) program. While MI participates in the CFS, MI still requires 1099s to be filed directly to the state. Back to top

Minnesota (MN)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

Minnesota charges a penalty of $50/ return for failure to file, with an annual max of $25,000. To learn more about Minnesota’s direct reporting obligations, reach out to one of our experts.

Missouri (MO)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1) If payment of income is $1,200 or more from a MO source, or 2) if state withholding	2/28
1099-INT	1) If payment of income is $1,200 or more from a MO source, or 2) if state withholding	2/28
1099-K	1) If payment of income is $1,200 or more from a MO source, or 2) if state withholding	2/28
1099-MISC	1) If payment of income is $1,200 or more from a MO source, or 2) if state withholding	2/28
1099-NEC	1) If payment of income is $1,200 or more from a MO source, or 2) if state withholding	2/28
1099-R	1) If payment of income is $1,200 or more from a MO source, or 2) if state withholding	2/28

To learn more about Missouri’s direct reporting obligations, reach out to one of our experts.

Mississippi (MS)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1. If state withholding 2. Any payments exceeding $600	2/28
1099-INT	1) If state withholding 2) Any payments exceeding $600	2/28
1099-K	1) If state withholding 2) Any payments exceeding $600	2/28
1099-MISC	1) If state withholding 2) Any payments exceeding $600	2/28
1099-NEC	1) If state withholding 2) Any payments exceeding $600	2/28
1099-R	1) If state withholding 2) Any payments exceeding $600	2/28

Mississippi charges a penalty of $5/ return for failure to file, subject to a $250 minimum and an annual max of $10,000. To learn more about Mississippi’s direct reporting obligations, reach out to one of our experts.

Montana (MT)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1) If state withholding, or 2) If payment is $10 or more	1/31
1099-INT	1) If state withholding, or 2) If payment is $10 or more	1/31
1099-K	1) If state withholding, or 2) If payment is $600 or more	1/31
1099-MISC	1) If state withholding, or 2) If payment is $600 or more	1/31
1099-NEC	1) If state withholding, or 2) If payment is $600 or more	1/31
1099-R	1) If state withholding, or 2) If payment is $600 or more	1/31
1099-DA	Follow IRS guidelines	January 31 (presumably, but unconfirmed)

Montana charges a minimum penalty of $1000 for purposely or knowingly failure to file with a max of $10,000. To learn more about Montana’s direct reporting obligations, reach out to one of our experts.

New Jersey (NJ)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1) If state withholding, or 2) If amount paid or credited is $1000 or more	2/15
1099-INT	1) If state withholding, or 2) If amount paid or credited is $1000 or more	2/15
1099-K	1) If state withholding, or 2) If amount paid or credited is $1000 or more	2/15
1099-MISC	1) If state withholding, or 2) If amount paid or credited is $1000 or more	2/15
1099-NEC	1) If state withholding, or 2) If amount paid or credited is $1000 or more	2/15
1099-R	1) If state withholding, or 2) If amount paid or credited is $1000 or more	2/15

New Jersey charges a penalty of $50/ return for failure to file electronically. To learn more about New Jersey’s direct reporting obligations, reach out to one of our experts.

North Carolina (NC)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	3/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding OR if recipients address is located in North Carolina	1/31

To learn more about North Carolina’s direct reporting obligations, reach out to one of our experts.

Nebraska (NE)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	Not required to be filed
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

To learn more about Nebraska’s direct reporting obligations, reach out to one of our experts.

North Dakota (ND)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	1. If payor resides, owns property, or carries on a trade or business in ND; AND payor is required to file a 1099, 1042-S, or W-2G to report the same payment for federal purposes. OR 2. If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

North Dakota charges a penalty of $10/ return for failure to file, with an annual max of $2000. To learn more about North Dakota’s direct reporting obligations, reach out to one of our experts.

Nevada (NV)

No Direct State Reporting Required

New Hampshire (NH)

No Direct State Reporting Required

New Mexico (NM)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	1) If NM withholding, or 2) If oil and gas proceeds, report rents and royalties from NM properties	1/31
1099-R	If state withholding	1/31

New Mexico charges a penalty of $5/ return for failure to file electronically. To learn more about New Mexico’s direct reporting obligations, reach out to one of our experts.

New York (NY)

Note: New York does not participate in the CFS (Combined Federal State) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	Must be filed directly with the state following federal thresholds.	4/30
1099-MISC	Not required to be filed
1099-R	Not required to be filed

New York charges a penalty of $50/ return for failure to file, with an annual max of $250,000. To learn more about New York’s direct reporting obligations, reach out to one of our experts.

Ohio (OH)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	Not required to be filed
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding or a OH resident	1/31

Ohio charges a penalty of $50/ return for failure to file. To learn more about Ohio’s direct reporting obligations, reach out to one of our experts.

Oklahoma (OK)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	$750 for payments by all persons except corporations. For payments by corporations, $100.	3/31
1099-INT	$750 for payments by all persons except corporations. For payments by corporations, $100.	3/31
1099-K	Not required to be filed	3/31
1099-MISC	Amounts to report: $750 or more except $10 or more for royalties. All payments with Oklahoma withholding must be reported.	3/31
1099-NEC	Report payments of $750 or more made to an Oklahoma resident or to a nonresident providing professional services within the State of Oklahoma.	1/31
1099-R	If $750 or more	3/31

To learn more about Oklahoma’s direct reporting obligations, reach out to one of our experts.

Oregon (OR)

Note: Oregon does not participate in the CFS (Combined Federal State) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	1) If state withholding or 2) If recipient has OR address	3/31
1099-MISC	1) If state withholding or 2) If recipient has OR address	3/31
1099-NEC	1) If state withholding or 2) If recipient has OR address	1/31
1099-R	1) If state withholding or 2) If recipient has OR address	3/31

Oregon charges a penalty of $50/ return for failure to file with an annual fee of $2500. If this person knowingly fails to file a return the fee increases to $250/ return with an annual fee of $25,000. To learn more about Oregon’s direct reporting obligations, reach out to one of our experts.

Pennsylvania (PA)

Note: Pennsylvania does participate in the CFS (Combined Federal State) program, but still requires direct filing of all forms.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	Not required to be filed
1099-INT	Not required to be filed
1099-K	Not required to be filed
1099-MISC	Follow IRS guidelines	1/31
1099-NEC	Follow IRS guidelines	1/31
1099-R	If distributed to a PA resident or state withholding.	1/31

Rhode Island (RI)

Note: Rhode Island does not participate in the CFS (Combined Federal State) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DA	*Awaiting decision from state
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	1. If state withholding; or 2. If the amount paid is for services performed in Rhode Island and the Recipient is a non-resident of Rhode Island	1/31
1099-NEC	1. If state withholding; or 2. If the amount paid is for services performed in Rhode Island and the Recipient is a non-resident of Rhode Island	1/31
1099-R	If state withholding	1/31

To learn more about Rhode Island’s direct reporting obligations, reach out to one of our experts.

South Carolina (SC)

Note: All direct reporting requirements below assume you are filing with CFS (Combined Federal State)

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

To learn more about South Carolina’s direct reporting obligations, reach out to one of our experts.

South Dakota (SD)

No Direct State Reporting Required

Tennessee (TN):

Note: Tennessee does not participate in the Combined Federal State (CFS) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-K	Follow IRS guidelines	4/30

To learn more about Tennessee’s direct reporting obligations, reach out to one of our experts.

Texas (TX)

No Direct State Reporting Required

Utah (UT)

Note: Utah does not participate in the CFS (Combined Federal State) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

To learn more about Utah’s direct reporting obligations, reach out to one of our experts.

Virginia (VA)

Note: Virginia does not participate in the CFS (Combined Federal State) program, so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If required federally, PSE’s must file a copy directly with VA. TPSO’s must file following a $600 threshold, or if state withholding.	3/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

To learn more about Virginia’s direct reporting obligations, reach out to one of our experts.

Vermont (VT)

Note: Vermont does not participate in the Combined Federal State (CFS) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	1) If state withholding OR 2) If payments were made to non-residents for services performed in VT.	1/31
1099-INT	1) If state withholding OR 2) If payments were made to non-residents for services performed in VT.	1/31
1099-K	1) If state withholding, or 2) If required federaly, or 3) If payment by TPSO is equal to or greater than $600	1/31
1099-MISC	1. If state withholding OR 2. If payments were made to non-residents for services performed in VT.	1/31
1099-NEC	1. If state withholding OR 2. If payments were made to non-residents for services performed in VT.	1/31
1099-R	1. If state withholding OR 2. If payments were made to non-residents for services performed in VT.	1/31

Vermont charges a penalty of $50/ return for late filings. To learn more about Vermont’s direct reporting obligations, reach out to one of our experts.

Washington (WA)

No Direct State Reporting Required

Wisconsin (WI)

Form Type	Requirement(s)	Due Date(s)
1099- DA	If state withholding. Must file on paper for 2025.	1/31
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	1) If state withholding 2) If payments are $600 or more 3) If payments for services performed in WI or related property located in WI.	1/31
1099-NEC	1) If state withholding 2) If payments are $600 or more 3) If payments for services performed in WI .	1/31
1099-R	1. If state withholding 2. For distributions equaling $600 or more from a retirement, stock bonus, pension, profit-sharing, disability, annuity, IRA, Keoph, 401(k), or other similar plan, except distributions from a qualified plan to a nonresident.	1/31

To learn more about Wisconsin’s direct reporting obligations, reach out to one of our experts.

West Virginia (WV)

Note: West Virginia does not participate in the CFS (Combined Federal State) so all returns must be filed directly.

Form Type	Requirement(s)	Due Date(s)
1099-DIV	If state withholding	1/31
1099-INT	If state withholding	1/31
1099-K	If state withholding	1/31
1099-MISC	If state withholding	1/31
1099-NEC	If state withholding	1/31
1099-R	If state withholding	1/31

West Virginia charges a penalty of $50/ return for filing incorrect information, with a maximum of $100,000. To learn more about West Virginia’s direct reporting obligations, reach out to one of our experts.

Wyoming (WY)

No Direct State Reporting Required

The Continuing Evolution of Sales Tax

Where we are today

Sales tax by the numbers

The size and scope of the sales tax universe can be overwhelming

As of December 31, 2021, there were 22,688 political subdivisions (states, counties, cities) in the United States. Of those political subdivisions, sales tax currently exists in 12,620 of those locations. This includes 44 states (along with Washington D.C. and Puerto Rico), 2,218 counties, 7,938 cities and 2,418 districts.

Sales tax by the numbers

The impact of South Dakota v. Wayfair, Inc.

When economic nexus became a reality with the Supreme Court’s decision in June of 2018, managing sales tax became a vastly more complicated exercise for businesses. Continuous change, new laws and greater oversight and enforcement all contributed to a tougher experience for businesses selling across multiple jurisdictions.

Year	Sales Tax Changes
July 2018 – June 2019	652
July 2019 – June 2020	571
July 2020 – June 2021	640
July 2021 – June 2022	546
July 2022 – June 2023	686

For perspective on how frequently things change from a sales tax administration perspective, our team of regulatory compliance experts tracked all the rates and forms, changes and new laws/bills being considered, as well as trends since June 2018.

State-by-state map

Stay up to date on all sales tax rates and obligations with Sovos’ State-by-State Guide to Sales Tax Nexus Laws

Learn more

Sales tax by the numbers

Complexity and change continue to define the state of sales and use tax

When it comes to sales tax, the only constant is change. Not only are we seeing a trend in new jurisdictions implementing sales taxes for the first time, but existing taxable jurisdictions are continuously changing and tweaking their laws in ways that can impact how you collect and remit sales tax.

Year	Total Forms Tracked	Number of Form Revisions
2018	1422	843
2019	1431	754
2020	1452	657
2021	1460	592
2022	1471	603
2023	984	634

Staying on top of changes and implementing them timely can be a business’ best defense against notices and audits.

In addition to the number of changing forms, many jurisdictions are implementing technology that is changing traditional processes. This means that in several jurisdictions, the traditional tax return process has been scrapped in favor of electronic portals.

“Without Sovos it would be a disaster for us to try and manage tax rates and rules, especially in states with multiple levels of jurisdictional rates. I’m confident in Sovos that all the rates are accurate and timely, and if we have a sales tax holiday then we know they are going to be handled. Sovos helps us avoid auditing issues and responds quickly to any questions we may have.”

– Mark Oulds
Director of Taxation, Boscov’s

Read the case study

Sales tax by the numbers

The tax gap is real, and governments are taking action

According to figures published by the IRS, the annual tax gap in the United States is more than $400 billion. To combat this, legislatures are constantly proposing new bills that impact how sales taxes are assessed, collected and remitted. The expectation is that sales tax is likely to become more complicated in the coming years as jurisdictions move to collect revenues owed.

A comparison of proposed laws tracked between 2020 and 2023 shows the escalating number of bills being considered to secure more revenue and ensure the collection of revenue legally owed.

“If I were to offer a company advice on choosing a sales tax provider, I would definitely steer them towards a model like Sovos, where you have an individual who’s responsible for your account, understands your business and is responsible for it month over month. ”

– Erik Hinkie
CIO, Holmes Corporation

Read the case study

Conclusion

Five years have passed since the implementation of economic nexus laws based on the Supreme Court South Dakota v. Wayfair decision. Jurisdictions continue to implement, change and tweak their laws and processes while increasing their ability and desire for greater enforcement.

With a large tax gap to pare down and coming out of a global pandemic, the expectation is that things will continue to grow more complex and confusing as jurisdictions grapple with how to collect revenue owed.

Sales tax management can quickly overwhelm operations

Now is not the time to go it alone

See how we can help

Connecting QuickBooks to a Sales Tax Solution

Guide

Ensure sales tax calculation accuracy and streamline your filing process

Streamline and simplify sales and use tax compliance with an out-of-the-box integration to QuickBooks Online. Sovos’ easy-to-install solution effectively positions your business for growth especially when operating in complex jurisdictions.

Download the guide to learn how connecting QuickBooks Online to our sales tax solution can ensure you stay compliant with every sales and use tax change.

Key Benefits

● Seamless integration for enhanced and accurate tax calculations

● Always-on access to our robust taxability rules

● Increased compliance by reducing and minimizing manual errors

Get peace of mind for your growing business with a scalable integration between your QuickBooks Online solution and Sovos’ comprehensive sales tax engine.

Download the Getting Started Guide today.

Get Your Guide

Guide

Indirect Tax Rules for Insurers Across Europe

IPT is a complex thing to deal with.

Many tax authorities are increasing their focus on the insurance industry in an effort to close tax revenue gaps, with many introducing Insurance Premium Tax (IPT) and other indirect taxes for insurance. Globally, IPT is fragmented across over 200+ countries and achieving compliance can be a complex process requiring specialist knowledge.

Insurers, especially those operating across multiple territories, can find keeping up to date with the latest IPT rates, rules and regulations to ensure compliance challenging.

This guide provides a helpful snapshot of the indirect tax rules that apply to insurance premiums across Europe.

Download the Indirect Tax Rules for Insurance Across Europe guide

Get the guide

The guide provides a useful reference of indirect rules across Europe including:

Albania, Andorra, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Monaca, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Switzerland, United Kingdom.

Insurance Premium Tax compliance

The digitization of tax is a trend that will undoubtedly continue. Organisations need to prepare for any changes to reporting as this will impact compliance obligations for the countries they operate in.

Tax authorities have increased their focus on the insurance industry to ensure IPT and parafiscal taxes are collected correctly, accurately, and on time.

Operating in multiple countries inevitably means also having to comply with many local regulations in line with IPT statutory and parafiscal filing. Compliance regimes can be simple or complex, but the difficulty is that they’re varied.

Download our guide to ease this burden.

Report

The Sales and Use Tax Pressure Index

How does your company compare?

Complying with ever-evolving sales and use tax regulations is not an optional business consideration. Small and medium-sized businesses can be hit especially hard with complicated, complex and distracting requirements. SMBs face a tremendous amount of pressure as they often don’t have the layers of resources that larger companies have at their disposal.

Economic nexus is now in play in nearly every U.S. state, and SMBs cannot afford to assume that increased sales and use tax scrutiny doesn’t apply to them. With regulators looking to close the tax gap, there are now increased chances of notices, audits, penalties and fines.

To gauge just how much pressure those who have responsibility for sales tax management/administration at their organization, Sovos surveyed 250 individuals meeting this description to learn about their concerns and frustrations. Nearly eight out of 10 respondents said that they work at companies earning less than $10 million or between $10 million and $25 million in annual revenue.

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The survey revealed the following key takeaways:

New technology can help ease the burden – Eighty-three percent of respondents said automating their organization’s tax management process would make them happier in their current role, and they would be more likely to stay with the company.
IT is feeling the pressure – Over 50% reported seeing a strain on IT and other resources, with 35% saying that the growing complexity of sales tax distracts from core business priorities.
Fearing the financial consequences – Nearly 80% said either generating an audit or facing a financial penalty was their biggest fear if a mistake was made when remitting sales tax.
Anything but sales tax compliance – There were numerous other chores respondents said they would rather be doing than attending to sales tax compliance requirements. Going grocery shopping (63%), doing the laundry (51%) and even going to the dentist (39%) were all cited as better alternatives than attending to sales and use tax compliance processes.

Is this a pressure point for your organization? Are you finding core business objectives being pushed to the side, while employees buckle under the added responsibilities? There should never have to be a choice between losing a sale or processing a sale when you know that the sales tax is wrong.

It doesn’t have to be difficult to get your sales and use tax management under control. The right partner can help ensure that the burden of regulatory compliance shifts from your organization to theirs, providing peace of mind so you can focus on core business priorities.

Guide

Understanding VAT Obligations: European Events

Global events are popular once again and conferences and exhibitions often create VAT registration obligations in different European Union Member States that your business operates in.

Navigating these complex place of supply rules can be challenging. Legislation varies country-to-country and the type of event you’re organising affects this. Download our helpful guide to understand what your VAT obligations are.

Place of Supply Rules

When determining where tax applies to an event, it’s important to consider the place of supply rules.

These can be confusing and hard to interpret. When organising events and conferences, there are two basic rules to think about:

Does the service being supplied fall under the general place of supply rules, in which case, if the supply is B2B, VAT is due where the customer is based. In this scenario if the customer is established outside the UK, then the customer has to account for VAT on behalf of the supplier in the country they are established in under the reverse charge rules in the EU or potentially equivalent if non-EU.
Does the supply fall under any of the exceptions to the main rule? The most common example being admission to conferences and events whereby VAT is due where the event is held.

Get the guide

As you can see, VAT and events is a complex affair.

Admission to events, exhibitions and conferences in the EU is subject to VAT in the country where the event takes place. In addition to admission, other considerations include stand rental, local suppliers, sponsorship packages and catering services.

Our guide covers these topics:

VAT registration – where should I register and what VAT rules should I consider?
Event organisers – what VAT liabilities apply and how does it affect clients?
Online events – how do the rules differ for online events, both for B2B and B2C?
Hybrid events – are these taxed differently?
VAT reclaims – what claims are possible and what VAT can I recover?

Tour operators margin scheme (TOMS)

In addition to these common concerns, the Sovos Understanding VAT Obligations: European Events guide also explores TOMS – the tour operators margin scheme.

If a business buys in and sells services such as hotel accommodation, passenger transport or excursions to its clients/delegates in its own name, TOMS may well apply. The supply of services that fall under the scheme receive a different tax treatment to most supplies of services. They can require the undertaking of a complex calculation.

Also covered is a summary of non-EU events and how to apply VAT when hosting an event outside of the European Union.

For example, some non-EU countries will apply similar rules to the EU and a registration may be

Needed. However the issues will often be complex and require a business to carefully consider the organisation of the event at the outset. VAT recovery in non-EU countries will also vary and not all countries will allow refunds to overseas businesses.

Compliance peace of mind with a complete, global VAT Managed Service from Sovos

Whatever your VAT implications, Sovos has the expertise to help you navigate your global events and the complexities of cross-border VAT obligations. Our VAT Managed Services ease your compliance workload while mitigating risk wherever you operate today. In addition, we ensure you’re ready to handle the VAT requirements in the markets you intend to lead tomorrow.

Download the Guide

Talk to an expert.

Ask our VAT experts how Sovos VAT Managed Services can ease your compliance needs.

Get in touch

Guide, Product Brochure

Italy: Electronic Invoicing and Reporting Requirements

Seeking to close a 35 billion euro tax gap, Italy has implemented a clearance e-invoicing model for domestic transactions. Get the details in the mandate and the requirements it involves with this guide.

Guide

Colombia: Electronic Invoicing and Reporting Requirements

Latin American compliance is a challenge for multinationals operating in the region. Inability to achieve or maintain compliance can cost companies hundreds of thousands or even millions of dollars each year. Colombia is a pioneer in electronic invoicing and VAT enforcement.

For more details on the evolution and requirements of the mandate, fill out the form to download the guide on e-invoicing in Colombia.

Guide

Key Considerations For IT and Tax to Ensure Alignment on the Journey to a Cloud-Based Sales Tax Solution

Why sales tax processes should be included on your journey to the cloud

The business needs of a multi-faceted organization are endless and priorities can quickly become skewed. It is important that businesses take steps to align strategies on ensuring tax is included in the cloud approach.

Tax Team

IT Team

Tax Team

How do we ensure alignment with IT?

What is IT’s cloud strategy?
What are IT’s near-term priorities?
Are there upcoming changes to transactional systems (ERP, eCommerce, P2P)?

IT Team

How do we ensure alignment with tax?

How are we currently supporting the tax function?
Does tax have any limitations in their existing processes?
Are they aware of our IT roadmap?

Tax Team

Assessing our current tax solution

How reliant upon IT are we?
Can we manage systems within tax?
What processes can we automate?

IT Team

Assessing how tax fits into strategic planning

How much time are we spending on sales tax processes?
Where do we want to reduce the resource impact/manual work?
Do we have a strategy to move to S/4HANA? What are the implications of tax data migrations when we move to S/4, and the impacts of not properly accounting for this?

Tax Team

How do we prepare tax for the migration?

Identify and confirm ideal end state.
Review customizations and identify what needs to be changed.
Identify key stakeholders and migration concerns.

IT Team

When and where should we consider tax?

When changing to a transactional system.
When aligned with a cloud strategy.
As early as possible – don’t make tax an afterthought.

Migrating your tax engine to a cloud-based sales tax solution is the perfect time for IT and tax to align on strategic priorities.

Getting tax and IT aligned early and often eliminates issues and increased costs.

Sovos can help bring the two sides together with minimum interruption and maximum output. Talk to Sovos if you have questions about moving your tax engine to the cloud.

Talk to an expert

Resource Center

Form 1099-NEC & Direct to State Reporting

Tax and accounting professionals managing 1099 reporting will need help this tax season. Here’s why.

New 1099 Form

In 2020 1099-NEC was resurrected to replace box seven on Form 1099-MISC. This means the 1099-NEC is the new form for reporting nonemployee compensation for services amounting to $600 or more. As a result, this form has a significant impact on all types of businesses and their 1099-MISC reporting processes.

New Reporting Requirements for Federal & State

The IRS announcement in Publication 1220 added Form 1099-NEC to be included in the Combined Federal/State Filing (CF/SF) program. It will be up to the state agencies whether or not to make a change to participate in CF/SF and not continue to require direct reporting. This means businesses will need to:

Track individual state guidance for the 1099-NEC that will continue to change late in the season
Understand state-specific requirements around data, reporting thresholds, format, timelines and adapting reporting processes for each state

This page is a one stop resource to help you get through tax season.

Webinar

Access our on demand webinar and learn everything about the new form 1099 NEC and state reporting requirements

Watch Now

Blog

Read our blog with the latest updates on new state direct reporting requirements

Read Now

Subscribe to the blog and receive regular email alerts for new state reporting requirements

Sovos Products

Learn about Sovos’s NEW 1099 NEC and direct to state reporting service offering

Learn More

Demo

Watch a quick demo of Sovos’ solution

See the Demo

If 1099 - NEC has you feeling a bit overwhelmed, don’t worry, Sovos can help

Talk to Our Experts

Sales Tax Toolkit: Your Guide to Q4 and Annual Filings

We’ve compiled resources and tips from our experts in this toolkit to help you create a plan for confidently meeting your sales tax deadlines while maintaining a work-life balance.

Be prepared instead of stressed

The U.S. currently has 12,274 sales tax reporting jurisdictions across the different states, counties, districts and cities.

If you continue to file taxes the same way you always have and hope that nothing is overlooked, it might be time for a new strategy. Remember, hope is not a plan. Our team understands that the sales tax filing landscape is changing and we want to provide you with the knowledge and tools you need to ensure sales tax compliance, even as your filing obligations change.

This sales tax toolkit is a digital experience, including:

Key things to consider about modified business operations due to COVID-19 and how your filing obligations may have changed.
An ideal monthly workflow for tax filing teams, including a compliance filing checklist to reduce your risk of inaccurate reporting and penalties.
A list of all state filing deadlines and a printable calendar for you to prioritize your tasks and deadlines
Tips from our Managed Services team on maintaining work-life balance and avoiding burnout.

When you download our Sales Tax Toolkit, you’ll also have the option to select a gift for added boost when it comes to juggling the increased workload come January.

Get your toolkit

January is closer than you think, meaning now is the time to start preparing for sales tax filing. Regulations change and failing to ensure your filing process evolves along with those changes will not help ensure compliance. Sovos has the tools and guidance you need to create the right strategy that can continue to grow with your company and all sales tax regulations.

It’s easy to feel overwhelmed with ensuring sales tax filing compliance. Burnout can happen when businesses lack necessary tools that help employees stay on track, with the ability to also maintain a healthy work-life balance. It may be more difficult for your employees to focus when they are stressed, which could lead to overlooked steps with your sales tax filing. But is there really a way to guarantee that balance? How can businesses make sure all sales tax filing deadlines are met without overwhelming employees?

Then there is the sales tax filing process itself. But it doesn’t have to be a process. January is a stressful time of year, but businesses often have monthly, quarterly and annual returns to finalize and submit. If you operate in multiple states – either with physical presence or as a remote seller – there may be numerous state annual reconciliations to consider. Additionally, local, state and federal tax regulations are ever-evolving, meaning businesses must remain vigilant to avoid inaccurate reporting that can lead to hefty financial penalties.

If you’ve ever thought, “Help me sales tax,” Sovos is here. Whether you are concerned about annual sales tax liability, updates at the local or state level or just with meeting all sales tax filing dates, we understand. Our team knows that the sales tax filing landscape is changing and we want to provide you with the knowledge and tools you need to ensure sales tax compliance wherever you file.

Your Guide to Annual Filings

Meet your sales tax obligations and maintain mental wellness this January.

Download the toolkit

Infobrief

Taming the Value-Added Tax Beast with Technology

Value added tax (VAT) continues to increase in complexity as governments explore new methods for increasing revenues and closing tax gaps. In our newest IDC sponsored InfoBrief, “Taming the Value-Added Tax Beast with Technology” we explore the driving forces behind the VAT evolution and why it has led to increased complexity for organizations conducting business internationally.

The global VAT evolution is the result of many countries scrapping their local tax infrastructure and implementing a common global value-added tax (VAT) structure or significantly changing their VAT system. This shift adds a significant amount of change (for countries that switched to VAT) and uncertainty (for countries that are yet to switch) into corporate tax processes, especially for companies with interests in these new VAT countries.

Get the Infobrief

Why companies need to think globally when it comes to VAT.

VAT complexity is primarily a result of how widespread VAT is and the lack of uniform approaches among member countries. Situations that add to the complexity include:

VAT returns can differ greatly from country to country.
Different countries means translation issues abound.
Different industries can have different requirements.
The list of eligible transactions/ services is growing rapidly.

We have reached a point in the evolution of VAT compliance where localized point solutions can no longer keep pace with the demands of governments looking to close tax gaps and increase revenues. Attempting to manage the complexity of modern VAT through disparate IT systems creates support and maintenance challenges that are essentially unsolvable.

With the tax gap continuing to increase globally, regulatory authorities have embraced the digitization of tax to increase revenue by eliminating suspicious supply chain activity and VAT fraud. This has provided a greater degree of control in implementing necessary reforms and changes.

Digitization has also lessened the burden on compliance by reducing paper trails through the automation of systems. Perhaps most importantly, it has allowed for the sharing of data between countries for cross-border transactions which has been plagued by inefficiencies and fraud.

This IDC InfoBrief provides in-depth analysis of why businesses need to consolidate and standardize platforms and IT processes to effectively implement compliance processes to create greater agility to capitalize on emerging markets. By having a single source of truth for data and reporting, organizations can better protect themselves against audits, fines and penalties.

Get your complimentary copy of the IDC InfoBrief now to ensure your organization is prepared to respond to the growing complexities of global VAT.

Are You Getting What Your Sales Tax Solution Promised?

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Is Your Sales and Use Tax Solution Falling Short of Expectations?

Many sales and use tax solutions leave you feeling underwhelmed once they become operational. What was billed as a complete solution to your organization’s increasing sales tax complexity has become instead a source of increased stress and anxiety.

You’ve become skeptical. We get it.

But manual approaches are no longer practical. You need to protect your business from painful tax audits and potential fines.

Maybe you’re thinking sales tax is just so complicated that the technology solution you’re using might be as good as it gets.

It’s not.

Maybe you think all vendors are the same.

They aren’t.

Or, maybe you think that the cost and pain of switching from one solutions provider to another would be more expensive and painful than it’s worth.

It isn’t.

Relieve your sales tax burden and refocus your efforts on other critical business functions.

This free guide will help you review the state of your current sales and use tax solution and start you on a path to better tax compliance management with fewer surprises and better results.

Download your complimentary copy of our guide today, and then talk to Sovos. We can help.

Because when sales and use tax management is easier, life is better.

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