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Sovos
August 11, 2016

Does your company have an AP (accounts payable) tax compliance process in place? Why is this critical? If you don’t have a complete process in place, you may be at risk for audit and penalties.

What is a Reverse Audit?

A reverse audit is typically undertaken by tax practitioners and is similar in many ways to a state government review. However, it can also uncover gaps in your sales and use tax process and help you identify areas in need of improvement. For example, you may be charging sales tax when the sale should be exempt. Or, you may be inappropriately charging tax because there’s no exemption claim or you have an invalid exemption certificate on file. In these, and other scenarios, you may end up paying tax that is not legally due. By detecting overpayments of sales and use tax paid to vendors or remitted to governmental authorities, you can seek out and get refunds to your organization. During a government audit or review, they will only be looking for underpayments. Moreover, a reverse audit is an effective way to justify the benefits of a tax engine. KPMG will complete a reverse audit and only be paid if/when the organization gets money back. In some cases, the refunds may offset the cost of a tax engine.

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Sovos

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