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Infographic: State 1099 Reporting Deadlines

By far, the biggest challenge facing organizations during 1099 reporting season this year was state reporting. With states tightening deadlines and multiple jurisdictions and reporting thresholds to deal with, Sovos customers found state reporting more complex than any other element of reporting season.

This updated infographic shows why. The map shows 1099 reporting deadlines by earliest deadline per state. In just a few years, the vast majority of 1099 first deadlines have shifted from March to January. Combine that shift with changing thresholds for 1099-K forms and other state-specific policies, and it is clear why state reporting has become such a challenge and will likely continue to be.

 

With reporting periods shrinking, organizations need to centralize and automate reporting processes in order to maximize efficiency, ensure compliance and avoid financial penalties.
Find out how Sovos can help.

Global Taxation is

Going Digital

Here's How to Prepare

An underappreciated revolution--the shift to digital taxation--is underway. More and more countries are requiring businesses to comply with a new model of tax reporting and compliance.

This is the digital transformation of tax: a climate in which global tax authorities demand more e-invoicing and e-reporting—which will likely lead to more e-assessments and e-audits. Here, we explore the transformation and offer a clear path forward for business and technology leaders to tackle its challenges and leverage opportunities.

Section-Dividers-FI-01

To date, about 30 countries have implemented some form of digital tax reporting or collection requirement—and many of those early movers are developing nations such as Brazil and Mexico. As Intra-European Organisation of Tax Administrations Executive Secretary Miguel Silva Pinto explains, a primary motivator moving developing countries toward digital processes is that “digitization is a highly effective means of countering fraud.”

But going forward, more nations—including developed economies—will up the ante on digital reporting requirements. Not only will the information collected swell to include more intimate details around corporate operations, it will also shift from taxpayer-submitted to government-issued returns.

“The rise of digital taxation turns the traditional tax collector-taxpayer relationship on its head,” says Carolyn Bailey, partner at Ernst & Young’s Tax Services. In a Forbes Insights survey of 250+ senior executives, majorities of cross-industry finance, tax and IT leaders report experiencing a variety of trends in digital taxation.

Companies Face New Requirements

80%
of leaders experience
localization
which requires that tax software and reporting processes meet local regulations
64%
of leaders experience
e-Reporting
which replaces manual periodic form filing of summary information to online transmission of files with transaction data
64%
of leaders experience
e-Accounting
which requires businesses to transmit entire accounting ledgers to the tax administration or maintain accounts hosted by the tax administration based on their own transaction data
56%
of leaders experience
e-Invoicing
which mandates the use of e-invoices and real-time submission to the tax administration
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The switch to digital taxation introduces a variety of challenges, risks and costs: some are immediate and tactical, while others are longer-term and strategic.

The Challenge of Digital Taxation

Transparency

Tax authorities will have a clearer window into a company’s tax operations

Smarter Tools

Advanced analytics and AI will monitor consistency, track compliance and more precisely choose audit targets

Scrutiny

This unprecedented visibility means more intrusive controls, higher income assessments and the potential for tax controversy

Short-term Challenges

Initially, companies will need to tweak or even overhaul their invoicing, payment, enterprise resource planning (ERP) or other financial systems. Challenges will multiply as individual jurisdictions implement and continuously update digital requirements and more nations join the fray.

Meeting multiple requirements on short timelines across a growing list of jurisdictions can lead to a patchwork of solutions amid a diversion of scarce local IT and tax resources. But failure to achieve compliance in real-time reporting of transactions impacting VAT and broader taxation leads to fines, business disruption and damaged reputations.

Long-term Challenges

Digitization of taxation is part of an even larger trend—the shift to sharing more intimate information with tax authorities, a process accelerated by the OECD’s Base Erosion and Profit Shifting initiative (BEPS).

Digitization of so much data “becomes tax disclosure on steroids,” says Bailey. Soon enough, there will be jurisdictions applying advanced analytics and AI to scrutinize enterprises in search of evidence that can be used to levy higher assessments.

“More nations will be collecting massive amounts of information about not only individual companies, but entire industries, giving authorities an unprecedented window into operations and profitability.”

Carolyn Bailey

Partner, EY Tax Services
Digital Tax Administration Services

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The path forward can be daunting for business leaders: 57% say that responding to digital taxation represents a significant challenge for their company. Forbes Insights research findings and Bailey’s guidance can help business leaders create an explicit strategy.

Your Transformation Agenda

Take Inventory

“Take inventory of where you’re operating and where these requirements are being introduced,” recommends Bailey. It’s essential “to gain an understanding of the deadlines and to find out about penalties and enforcement.” Inventories should also take into account future investments.

Centralize & Standardize

83% of surveyed executives say they will be taking steps to move global taxation into a more centralized model. Greater centralization will eliminate the need for local IT patches and workarounds, in turn creating “opportunity for companies to achieve greater standardization,” says Bailey.

Streamline

The shift to digital processes—and away from manual, paper-based and often error-prone single-country systems—presents an opportunity to reduce costs while improving quality and efficiency.

Outsource

Executives are seeking assistance from specialists with expertise in digital VAT/GST operations around the world, as well as working more closely with ERP and other financial software providers. Most will be hiring additional IT and tax staff at headquarters and locally.

Collaborate

Perhaps the greatest necessity is to unite leaders across functions and processes. This begins with IT and tax, but also includes the broader finance, operations and strategic planning teams.

Turn Risks Into Opportunity

Synchronize Solutions

A comprehensive response is essential. Many companies need country-specific e-invoicing and related tax solutions, which requires a more systematic approach. And as tax authorities leverage their increased insight, companies must also prepare for more intrusive tax administration controls, tax controversy and intense scrutiny on transfer pricing. A coordinated response linking core business processes and ERP systems with new interfaces and improved solutions for reporting and compliance can significantly reduce costs and risks.

Dig Into Data

Greater standardization of information exchanged with tax administration platforms leads to vast new caches of mineable data. Tools like AI could help sift through detailed cost, revenue and related operational data, leading to more optimal decisions and strategies. Companies can also leverage the same data and tools to proactively scour their business models for tax efficiency and compliance—allowing for improved tax planning, contemporaneous documentation and justification of transfer pricing policies. 

Overall, the trend is clear and unavoidable: taxation is going digital. The best way forward is to use this as an opportunity to improve business outcomes.

Learn more about digital tax transformation and how business leaders are responding

Full Report

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Brazil: Electronic Invoicing and Reporting Requirements

In 2008, Brazil adopted a clearance electronic invoicing model in which the country’s tax authority must receive and clear an invoice before a supplier can issue it to a payer. More than a decade later, the Brazilian tax administration’s digitization has evolved so much that other tax administrations call Brazil the Google of fiscal goods. 

Current regulations include electronic invoices for: supplies of goods (NF-e), services (NFS-e), transport services (CT-e), freight (MDF-e), SPED, REINF and, more recently, for the supply of electricity (NF3e). 

This document provides an overview of the mandates and regulations in Brazil.

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Mexico: Electronic Invoicing and Reporting Requirements

Mexico is a pioneer in electronic invoicing and VAT enforcement, having begun its digitization journey in 2010. Today, Mexico has one of the most technologically advanced tax administrations in the world. Companies unaware of or unprepared for Mexican e-invoicing mandates could face significant fines and penalties, along with supply-chain disruptions and cash-flow issues. This document provides an overview of mandates and regulations in Mexico.

Growing Pains: Tax Information Reporting Obstacles

Companies operating in the technology space often see rapid growth. However, leaders may be blindsided by multiple Tax Information Reporting obstacles that can cripple their progress.

See the infographic below to learn more.

Cyber Monday 2019 – Sales Tax Preparation Key to Success

Cyber Monday 2019 is anticipated to be one of the most challenging to date for ecommerce and finance teams. More spending, in fewer days, and many more states imposing economic nexus, may subject more online retailers to sales or use tax collection and remittance responsibilities.

5 steps ecommerce retailers should take to prepare for Cyber Monday 2019

New sales tax laws require ecommerce retailers to step up Cyber Monday 2019 preparations. Are you ready?
Read the blog post

Infographic

Do 2021 Sales Tax Holidays Impact Your Products?

Sales tax holidays – or a tax free weekend, depending on where you live – are welcome reprieves for consumers, looking to save money when they can. But retailers’ tax departments might not be as excited. 

It takes careful monitoring of all the jurisdictions where businesses have sales, and an extra complexity has been added with economic nexus requirements following South Dakota v. Wayfair, Inc. Accurately applying sales tax before, during and after a sales tax holiday can take a lot of time, energy and resources. This can be especially tricky as local areas can send a notification of participation just days before a sales tax holiday begins. 

Online retailers with a diverse product portfolio, and with sales spanning the country, will truly feel the extra burden that can come with sales tax holidays. For example, there is no uniformity in state-to-state exemptions. If and when a holiday has a similar focus (e.g. “Back to School”), online retailers must familiarize themselves with individual state rules to stay compliant.

But which states have a sales tax holiday? What products are eligible for a holiday exemption?

Alabama
Severe weather preparedness (February 26-28)
Back to School (July 16-18)

Arkansas
Back to School, August 7-8

Connecticut
Clothing and footwear, August 15-21

Florida
Disaster preparedness (May 28-June 6)
Freedom Week (July 1-7)
Back to School (July 31-August 8)  

Iowa
Clothing and footwear (August 6-7)

Louisiana
Second Amendment (September 4-6)

Massachusetts
All-Inclusive (August 14-15)

Maryland
Energy Star (February 13-15)
Clothing and footwear (August 8-14)

Mississippi
Back to school (July 30-31)
Second Amendment (August 27-29)

Missouri
Energy Star (April 19-25)
Clothing and footwear (August 6-8)

New Mexico
Back to school (August 6-8)

Ohio
Back to school (August 6-8)

Oklahoma
Clothing and footwear (August 6-8)

Puerto Rico
School supplies (January 8-9)
Back to school (July TBD)

South Carolina
Back to school (August 6-8)

Tennessee
Gun Safety (July 1, 2021 – June 30, 2022)
Back to school (July 30-August 1)
Prepared Food (July 30-August 5) 

Texas
Emergency preparedness (April 24-26)
Energy Star & WaterSense (May 29-31)
Back to school (August 6-8)

Virginia
Back to school, Emergency Preparedness and Energy (August 6-8)

West Virginia
Back to school (July 30 – August 2)

Sales tax holidays can be a headache for retailers, regardless of when they occur. Many tax departments file sales taxes monthly or quarterly, though some may file annually or semiannually. Retailers’ tax and IT departments must remain vigilant and properly adjust their systems to correctly charge tax on every transaction. They will also need to account for changes should they be audited later. Retailers need to be able to update systems quickly, efficiently and accurately, ensuring that the correct sales tax holiday rates are only in place when they should be. 

Sales associates also have to know sales tax holiday details so they can process each transaction correctly. Overall, sales tax holidays can help consumers save, but cost retailers a lot of time and energy in ensuring taxes are accurately charged. Having an automated sales and use tax system can be extremely beneficial in helping to manage these complexities.

Talk to an expert.

See how Sovos can help with evolving sales tax holiday needs.
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Incoterms® - VAT Implications for Cross-Border Trade

Find out what Incoterms are and how they affect VAT in the EU in our latest infographic.

Cross-border businesses need to ensure VAT compliance to meet the requirements of each country. The complexity of international VAT affects different elements of the supply chain. The potential risks, fines and costs can cause headaches for businesses.

Download the infographic

VAT determination for goods requires an understanding of when goods move across a border and also if the supplier or customer is responsible for this movement.

So complications around who is responsible for VAT can arise. The International Chamber of Commerce (ICC) introduced a set of international commercial terms – otherwise known as Incoterms. This set of internationally recognised rules define the responsibilities of buyers and sellers in international transactions.

The 11 Incoterms define who is responsible for each element of the sale of goods. This includes documentation and customs clearance, shipment, and insurance.

In a Post-Brexit environment, businesses with EU and UK trade no longer trade intra-EU and are therefore subject to import and export rules. Contracts for the supply of goods within the EU usually mention Incoterms. Although they don’t determine the correct VAT treatment of a movement of goods, they’re helpful in understanding the intentions and responsibilities of both buyers and sellers.

Failure to understand how VAT relates to Incoterms within international contracts can cause delivery delays, possible penalties and interest for late registration and late payment of VAT as a result.

Our Incoterms infographic provides insight into the VAT implications for cross-border business and covers topics including:

  • What are Incoterms?
  • Which Incoterms affect VAT in the EU
  • In addition to examples of Ex Works (EXW) and Delivered Duty Paid (DDP) scenarios

There are obligations, costs and risk associated with the transport of goods and who is responsible for VAT at each stage. Ex Works and Delivered Duty Paid apply to all modes of transport – road, rail, air and sea.

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 Incoterms and the complexities of cross-border tax 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 infographic

Talk to an expert

Ask our VAT experts how Sovos VAT Managed Services can ease your compliance needs.
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IPT Compliance – Taking Care of the Detail so You Don’t Have To

Insurance premium tax (IPT) is a complex thing to deal with. Get it wrong and the implications can be problematic.

At Sovos we take care of the detail, giving you the complete peace of mind you need. We are compliance specialists and we solve tax for good. IPT is one of our specialisms, so we know it well. We’ve been in it from the start and, as a result, many of the world’s largest insurers trust us with their IPT compliance business.

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Trade effectively and without problems

As regulations change and become more complicated throughout Europe, you need the certainty that you can trade effectively and without problems. That’s what we provide. Our team of tax compliance specialists cover over 100 countries and know the ins and outs of each jurisdiction. It’s this depth and accuracy of knowledge that ensures you have the right level of compliance, are only paying what you need to pay, while having the latest information to always keep you aware of changes and stay ahead of the curve.

Compliance peace of mind

Our leading software gives you the freedom to achieve this yourself. It integrates seamlessly into your existing system and is easy to use. Simplify the preparation of IPT and parafiscal returns and use accurate, real-time rates and calculations to help you reduce both the amount of errors and reprocessing needed.

Or, if you prefer, we can manage it all for you, from registration through to fiscal representation. Either way, we’re always here for you to make the process simple and smooth no matter what the future holds. And because our team works together in the same location and knows how different tax authorities prefer to operate, you can be sure that whether you’re trading in a new jurisdiction, or across multiple different jurisdictions, the process will be fast and free from any niggles, big or small.

We’re a market leader for IPT compliance in Europe with award winning solutions.

  • IPT Determination – calculate and apply global IPT rates at quotation
  • IPT Reporting – generate returns needed for IPT compliance on a global basis
  • Full managed service solution
  • Fiscal representation
  • Consultancy
  • Bespoke approach to meet your changing business needs

Trusted by Fortune 500 companies

We actively work with 80% of insurers across Europe including many of the top 100 UK insurers, FTSE Eurotop 100, in addition to Fortune Global 500 companies.

As the challenges and complexities of IPT compliance continue to rise, more companies are realising the benefits of taking both a holistic and global approach. Sovos was built to solve the complexities of the digital transformation of tax with complete connected offerings for tax determination, and tax reporting and more.

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Ensure your business is compliant with CTC obligations.

Sovos provides the global expertise you need to manage regulatory requirements across all borders.
Talk with an expert today

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Blending Human Expertise and Software - VAT Managed Services

Companies around the world face growing VAT compliance obligations. Governments globally continue to look for ways to prevent fraud, increase revenue and ultimately close VAT gaps. It’s a challenge and especially as VAT requirements can be complex and fragmented across different markets. European Union countries alone lost an estimated €140 billion in VAT revenues in 2018. So it’s easy to see why governments are taking steps to reduce this.

Keeping up with VAT rates and reporting changes is daunting. For multinational companies, that complexity only intensifies. If you trade across multiple borders the associated workloads also increase.  For these reasons, companies need to ensure they have a robust compliance continuity plan in place to ensure their VAT compliance obligations are met wherever they operate.

The cost of noncompliance can be high. And errors can be caused by various reasons. These include late filings, using incorrect tax rates, misinterpretation of the regulations or simply due to human error.  Whatever the cause, the repercussions can be costly leading to loss of VAT deductions, invasive and time consuming audits and other financial penalties and reputational damage.

As the challenges and complexities of VAT compliance continue to rise, more companies are realising the benefits of embracing a managed service approach to all or part of their VAT compliance obligations.

Download the Product Brochure.

Technology enabled VAT Managed Services

Ease your compliance workload reducing risk wherever you trade

Sovos VAT Managed Services is a blend of human expertise and software. Our multi-lingual team of VAT experts use our proprietary software which is updated as and when VAT regulations change. Our team is your team. In addition, our global regulatory specialists monitor all regulatory changes, so you don’t have to. Allowing you more time to focus on your business.

Sovos VAT Managed Services takes care of your compliance for both periodic and continuous reporting obligations. This applies across all markets where you operate today and for the markets you intend to dominate tomorrow. A dashboard provides you with full visibility of the status of each of your filings. And, at a later date, if your strategy changes and you want to bring your VAT compliance function back in-house, that’s not a problem. Your partnership with us as a global tax technology provider is flexible. So this means you can readily switch to a fully insourced software solution.

VAT legislation is complex and continues to change. Businesses need the support of both managed services and technology to help them meet their VAT compliance obligations and to allow them to continue to trade with confidence. Appointing Sovos with our blend of human expertise and technology empowers companies to comply with and face the changing VAT landscape head-on.

Keeping up with VAT rates and reporting changes is daunting. For multinational companies, that complexity only intensifies. If you trade across multiple borders the associated workloads also increase.  For these reasons, companies need to ensure they have a robust compliance continuity plan in place to ensure their VAT compliance obligations are met wherever they operate.

The cost of noncompliance can be high. And errors can be caused by various reasons. These include late filings, using incorrect tax rates, misinterpretation of the regulations or simply due to human error.  Whatever the cause, the repercussions can be costly leading to loss of VAT deductions, invasive and time consuming audits and other financial penalties and reputational damage.

As the challenges and complexities of VAT compliance continue to rise, more companies are realising the benefits of embracing a managed service approach to all or part of their VAT compliance obligations.

Talk to an expert

Ask our tax experts how VAT Managed Services can help with your compliance needs
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Ecommerce Sales Tax: 3 Tips for Success in Your New Online Channel

Customers continue to seek out online options, pushing numerous types of businesses to implement ecommerce channels. But how can organizations ensure that their sales tax processes continue to run smoothly? Whether a business is just starting out or is looking to add ecommerce options, there are critical steps to take that will ensure sales tax compliance, happy customers and continued business growth.

Get Ready for the 2021 EU E-Commerce VAT Package

Download our infographic to understand the upcoming changes.

If you’re an EU business with B2C sales in other EU Member States or based outside the EU with B2C sales to the EU, 1 July 2021 will bring significant change.

The EU VAT e-Commerce Package aims to simplify cross-border trade and ensure VAT is charged correctly on cross-border B2C sales.

The change to the Distance Selling threshold means that VAT will be immediately due in the Member State of consumption and this could lead to a requirement for several additional VAT registrations. This will add cost and complexity to businesses and so the package introduces a One Stop Shop (OSS) to ease the burden.

OSS has many benefits but it’s not simple.

It’s important that companies prepare and make informed decisions now as to whether or not OSS is right for their business.

Download our infographic

Our One Stop Shop infographic will help you understand the key changes the new EU VAT e-Commerce Package will bring including:

·       Union OSS, Non-Union OSS and Import OSS

·       OSS record-keeping requirements

·       Excise goods eligibility

·       Place of supply rules

·       Changes to distance selling thresholds

·       Marketplace liability

·       Low value consignment relief  

·       How to prepare for OSS

·       The consequences of OSS noncompliance

As part of the changes, it’s important to understand which OSS applies to your business to ensure VAT compliance. Requirements vary for EU and non-EU businesses, for sales D2C or via an online marketplace depending on the final steps of the supply chain.

The three variations of OSS are:

·       Union OSS

·       Non-Union OSS

·       Import OSS (IOSS)

As OSS isn’t currently compulsory it’s better to understand internal timeframes and implement OSS when your business is ready, rather than try and rush to meet the 1 July 2021 introduction date.

The main choice businesses with total intra-community sales of >€10,000 need to make is whether to use OSS or register in every Member State where they trade.

Download our infographic to understand the upcoming changes and how they could affect your business.

Sovos can help you prepare for OSS

Implementing the changes required to comply with the 2021 EU e-Commerce VAT Package into your ERP system could take significant time and resources. Sovos can help ease the tax burden and help you prepare for and understand the right solution for your business.

Our large advisory team can help you navigate the complexities of modern VAT compliance.

5 Sales and Use Tax Questions Every Manufacturer Must Ask

Manufacturers face increasingly complex sales and use tax requirements, but are not always aware of what challenges lay ahead in the short- and long-term. Knowing the right questions to ask is an essential first step toward understanding how sales tax developments impact the manufacturing industry.

7 Steps to Integrating Sales Tax with Your S/4HANA Migration Journey

Migrating to S/4HANA is a big and complicated process for most organizations. It also represents a tremendous opportunity to update and align your tax strategy to meet the challenges of modern sales tax.

Sovos outlines best practices for SAP S/4HANA migration in seven easy to follow steps.

The SAP Backstory:

When SAP announced that it was extending support for its Business Suite 7 software suite until the end of 2027 many breathed a sigh of relief. However, doing so may be lulling yourself into a false sense of security.

While SAP adjusted its timeline, largely due to increasing customer pressure, it’s important to remember that governments have no such plans to alter their course of action and will not yield on integrating new regulatory standards for businesses to comply with. Especially in the aftermath of the COVID-19 pandemic.

Despite the respite provided by SAP, the pace of global regulatory change towards continuous controls and digitization continues to accelerate. And many businesses, unless they take action soon will be left scrambling to meet the demands of new regulatory standards.

Why Involve Tax Early:

Tax is a critical player in generating increased financial transparency and ensuring necessary cash flow, yet they have lived on the periphery of many important IT decisions and organizations are doing themselves a disservice by excluding Tax as part of their S/4HANA strategy. 

Tax departments continue to make do with legacy solutions which are ultimately not sustainable.  Too often Tax is forced to choose between efficiency and accuracy. This is a losing strategy that results in either valuable resources being tied up for non-revenue generating activities or assuming the risk of noncompliance.

Considering tax early and correctly is vital, and this is the perfect opportunity to take ownership of your tax processes. The time for standing on the sidelines has long since passed.

Migrating to a new platform is hard. SAP understands this better than anyone. As Co-CEO Christian Klein has said, “We know that our customers have deep business transformations underway… SAP will provide additional flexibility to fully embrace the groundbreaking opportunities of SAP S/4HANA that reflects the individual pace and complexity of our customers’ projects.”

Translation, this is a long and complicated process. Companies need to start early to fully integrate with and launch the new platform.

Our advice? Don’t wait to get your tax and regulatory issues settled. No matter which course of action SAP decides, governments have made their position clear and they are full steam ahead with enforcement.

The future direction for most companies includes the move to S/4HANA and Sovos remains committed to assisting you in this process.

Talk to an expert.

Find out why Sovos is trusted by half the Fortune 500 and the world’s smartest companies
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The Four Emerging Megatrends in VAT

The 13th edition of our annual Trends Report puts the spotlight on current and near-term compliance requirements across regions and VAT compliance domains. With a focus on the four megatrends in VAT that businesses of all sizes and industries need to be aware of, it’s an essential read.

The four megatrends are:

  • Continuous transaction controls (CTCs)
  • Destination taxability for certain cross-border transactions
  • Aggregator liability
  • E-accounting and e-assessment

Download our infographic for an overview of these trends.

Sovos’ team of global regulatory experts help businesses prepare and respond to the digitization of tax. We focus our efforts on giving our customers peace of mind by simplifying the multiple layers of complexity, enabling them to focus on growing their business.

In our Trends Report we take a comprehensive look at the changing regulatory landscape as governments across the world are enacting complex new policies to enforce VAT mandates, obtain unprecedented insight into economic data and close VAT gaps.

Authored by our team of international tax compliance experts, Trends includes extensive guidance on how companies can prepare for and thrive through these changes.

Says lead author and vice president of strategy and regulatory at Sovos, Christiaan van der Valk, “Governments now have all the evidence and political support they need to drive aggressive programs towards digital resilience. We’re already seeing CTCs and other VAT digitization initiatives accelerate at unprecedented speed around the world. And the public authorities won’t stop there. At Sovos we’re convinced the coming decade will see the rapid introduction of real-time economies with always-on tax and the removal of barriers towards the trustworthy use of data in digital form across businesses, markets, government departments and countries. Businesses that can get their strategies right for CTC and other VAT programs will reap the benefits.”

The report also includes a major review of the country and regional VAT compliance requirements. These profiles provide a snapshot of the current and near-term planned legal requirements across the different VAT compliance domains that companies need to be aware of if they are to survive the paradigm shift that is taking place today.

Finally, the report examines how governments have embraced digital transformation to speed up revenue collection, reduce fraud and narrow VAT gaps. Digitization enables regimes to increase time to enforcement and enact much stricter protocols. As a result, companies are forced to react with more stringent processes of their own if they are to remain compliant.

Download the Report

Sales Tax Filing Checklist: 7 Questions for Compliant Returns

Properly submitting and filing a compliant sales tax return should be a top priority for any business. But it is not always that easy. If organizations don’t have all necessary information, are unaware of required reporting frequencies or have not correctly reported deductions, the sales tax filing process can be difficult – and could even lead to hefty fines or an audit. 

Whether you run a small business with one brick and mortar location or you oversee a large organization that has e-commerce sales in numerous states, your sales tax needs cannot be overlooked. There are varied regulations, jurisdictions and forms that need to be properly followed. Sales tax laws are evolving all the time, meaning you cannot assume that things will be the same from one year to the next. For example, the South Dakota v. Wayfair, Inc. Supreme Court decision has had widespread impact nationwide on how businesses must register, collect and remit sales tax.

The bottom line is: double check everything: from reporting frequencies to pre-payment obligations to valid exemption certificates and more.

This is especially important if you have expanded into new areas, whether it is a fresh jurisdiction in the same state or a new state entirely. Verify if any thresholds have been crossed and what additional sales tax filing rules must be followed. Business growth is great, but you want to make sure it does not come with overlooked sales tax filing requirements. 

Additionally, compile all data from each sales channel you have: brick and mortar, e-commerce and marketplace. Did your company integrate online sales into daily operations earlier this year? Have you started selling online into a new state, even if you only have one physical store? These will both likely require additional sales tax filing steps, and must be considered in your filing process. 

It is easy to feel overwhelmed as you prepare to file your sales tax returns, but you are not alone. It is okay to not know everything about filing compliant sales tax returns. But it is key to know that there are experts out there who are willing to work with you and make sure that everything is properly reviewed. 

That’s why we created this sales tax filing checklist, complete with seven key questions that your business should be able to answer on its way to filing a compliant return. Also be sure to reach out to our team of sales tax experts for even more information on staying up-to-date and ensuring that all of your bases are covered.

VAT Solutions From Sovos – Tax Peace of Mind

It is time to get ready for the digital transformation of tax with Sovos VAT solutions.

New VAT reporting requirements are sweeping across the world with increasing intensity and diversity. Tax authorities are on a digital transformation journey, profoundly impacting how companies operate and comply with VAT law. As a result, the challenges that a company trading cross-border faces today may well be among the most onerous in history.

We are here to help.

The Rise of Continuous Transaction Controls

The end of this tax revolution, caused by varying forms of digitalization, is not yet in sight. Many countries around the world, particularly in Europe, have just started their individual journeys toward continuous transaction controls (CTCs). Then there are other countries such as Chile and Brazil in Latin America that have had them for many years. They continue to add new features to further close VAT gaps and to add interoperability. As a result, these additions increase economic benefits to the foundations they built.

Multinational companies need a global VAT solution that grows with them. Many companies feel lost among the rapid succession of CTC mandates around the world. They don’t know how to avoid placing themselves in a costly and perilous corner by using a multitude of diverse local solutions. In working with such companies and their solution providers, we know how crucial it is for responsible executives to help all affected corporate functions cooperate toward forming and adopting a coherent approach that turns CTCs into an advantage rather than a risk.

Tax peace of mind

Sovos is a global leader in tax compliance with global coverage and local expertise. We process more than five and a half billion tax compliance transactions every year in more than 100 countries. Our global coverage is supported by over 2,500 employees in more than 15 countries.

We provide our customers with complete tax peace of mind by providing the first complete global cloud solution for modern tax.  Our team of 100 regulatory experts constantly monitor the VAT landscape for regulatory changes across thousands of jurisdictions.

As more tax authorities introduce tax reforms to increase efficiency and close VAT gaps, we make sure our customers are prepared. We ensure they’re able to meet the challenges that increased compliance requirements bring. We help businesses stay ahead of fast-changing government regulations allowing them the breathing space to innovate and grow.

Get ready for the digital transformation of tax

Our solutions are built into the business process platforms used today, including SAP, Oracle, and Magento. Sovos provides seamless integration with one global provider and a centralized global VAT solution.

Speak to a VAT Expert

Find out why Sovos is trusted by half the Fortune 500 and the world’s smartest companies
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Sales Tax Compliance Readiness Assessment

Sales tax compliance should be a top priority for businesses. Federal, state and local regulations are ever-evolving, meaning companies can never assume that things will stay the same from one year to the next. Technology also evolves quickly, and businesses cannot afford to lag behind – failure to meet new sales tax filing obligations could lead to hefty financial fines or audits. 


Follow our Sales Tax Compliance Readiness Assessment below to make sure that your company has crossed every T and dotted every I on your path to compliance. And be sure to check out our multitude of resources for any questions you may have.