Why Shared Services in Latin America is Fundamentally Different from the Rest of the World
As companies around the world look for ways to make shared services even more efficient, they should look toward Latin America, where government regulations are necessitating that companies set the bar for innovations.
As a result, shared service departments in Latin America are setting a new standard in automation, error reduction and efficiencies, making these departments a model for shared services centers worldwide.
Financial institutions are moving toward a centralized tax solution, but why? There are five major drivers.
Failure to comply with business-to-government regulations in Latin America can impact critical business functions, not only resulting in millions of dollars in fines and penalties, but also shipping delays and operational shut-downs. In the most complex regulatory environments, such as Brazil, these mandates even affect sales, procurement and HR functions.
Though the end goal of these regulations – increased tax revenues – is the same, each country in Latin America varies significantly in terms of specific requirements and risks of compliance errors. With strict government regulations that can change almost overnight, companies are struggling to keep up with how these requirements differ by country. Here we have outlined the fines and penalties per country
On 1st July 2017 the Spanish Tax Authority (AEAT) introduced the Immediate Supply of Information (SII) on VAT – request of purchases invoices, sales invoices and intra-community operations within 4 days of issuing and capital assets annually. Suddenly more than 60,000 companies have become obliged to adapt
technology and adjust current Tax process and IT infrastructure to comply and avoid penalties
Based on Sovos’ previous experience in countries where this kind of mandate was adopted and followed by the successful results of the first quarter and AEAT updates, Spain SII will continue to improve and expand its geographic, information and companies in scope.
The 2018 Italian Budget Bill requires, starting January 2019, that companies operating in a business-to-business environment submit and approve/reject electronic invoices for goods and taxable services through the government’s electronic invoicing platform, the Sistema di Interscambio (SDI).
This represents a drastic change in finance, accounting, compliance and reporting processes which demands technology. Luckily, Sovos was built for that.
With the growing complexity of the 1099 reporting space NetSuite has decided to trust independent software vendors, such as Sovos, to support organizations throughout the 1099 reporting process. As of NetSuite version 18.2, NetSuite will discontinue supporting 1099 reporting functionality. Sovos has created a bundle within NetSuite that offers 1099 reporting capabilities. NetSuite will continue to track 1099 vendor information as it has in the past.
Value Added Tax (VAT) is applied in 165 countries worldwide and although is a tax on the final consumer, companies are the ones with the burden of reporting what they collected and/or paid. This can be very complex and challenging for businesses operating across different countries to manage.
Ultimately, the requirements in any two countries are never the same, therefore; companies need to be more than compliant, they need to be intelligent and innovative by streamlining tax compliance to manage multi-country requirements. Luckily, Sovos was built for that.
Technology has transformed your business and your products, and it’s about to change your ERP. But, it’s also transforming tax, and it could have a significant impact on your plans for S/4HANA.
Sovos keeps you ahead by offering the first complete solution for modern tax. And with more than two decades of experience with SAP, Sovos has built its solutions to make sure tax doesn’t disrupt your ERP initiatives.
ACH payments are deducted from your bank account, usually within one business day. A bank processes all incoming ACH payments in one batch process each night. If you use ACH, make sure to initiate it at least one business day prior to the state’s filing deadline.
Wire transfers happen in real time and are handled on an individual basis.
The Sovos Intelligent Compliance Cloud sits on a unique cloud software platform that is built to bring previously disparate tax solutions and data together for use wherever your business operates—through a single platform.
The S1 architecture allows Sovos to do the hard work for you, adapting to changes in technology requirements and government regulations – and giving you access to the tools and data you need to run your business anywhere in the world through a consumer-grade user experience.
Sovos Use Tax Manager is a cloud-based solution designed specifically to enable Tax to have the visibility and control needed over tax data on every purchase. Reduce the risks and costs of tax over and under payments, while managing the process in a fraction of the time. Tax is able to work in the background without IT intervention to easily import and aggregate purchase data from various systems and sources, enhancing the purchase information with all of the detail needed for correct sales and use tax determination and filing allocation.
Increasingly complex VAT regulations are sweeping across Europe and Latin America, demanding technology adoption to support compliance and reporting-related activities.
Now is the time for businesses to reevaluate their processes and technology to ensure they can meet complex VAT compliance and reporting initiatives, tightly integrate with government tax authorities, support real-time access to transactional data and adapt for the wave of change to come.
Tax managers know that managing customer exemption certificates is often the front line in sales and use tax audit defense. Have you ever felt that your organization’s certificate management process has gaps, or is out of control? Sovos’ CertManager will put your mind to rest, freeing up time and resources to focus on your core business.
Technology disruptions and increasing customer demands are driving significant, rapid and constant business changes for growing organizations. Likewise, regulators are also sharing more information with each other and using technology to enable increasingly complex rules and capture more detailed transactional data.
Sovos Global Tax Determination gives you the capabilities you need to keep your business ahead of rapid regulatory change and safeguard your organization from risk.