Use Sovos CertManager to Ease Tax Process After an Acquisition

Shelby Toto
October 12, 2023

This blog was last updated on October 12, 2023

CFOs have a lot to consider, especially if their company recently acquired another organization. Are you fully aware of that business’ tax process? How do you know if their approach to exemption certificate management was compliant?

With Sovos CertManager, ensuring a smooth tax process after an acquisition doesn’t have to be an unreachable goal – it can become your reality. Here are important things to remember about acquisitions and what you can do to keep your growing business compliant.

Acquisitions can mean inheriting uncertainty

Remember that an acquired business’ historic sales tax process still impacts potential audit scrutiny for your company. If any missteps were taken, your organization will be responsible for audit performances and penalties incurred. There is an additional burden to the purchaser if the seller defaulted on their tax responsibilities, which transfers the debt to the new owner.

Pro tip: The right partner ensures that nothing is overlooked, whether mistakes happened before an acquisition or if information is unaccounted for after a deal is made.

Clear communication helps mitigate exposure

While CFOs tend to worry about bigger picture things like overall organizational structure or the specific filing deadlines, there are smaller issues that cannot be overlooked. If you have new customers that are impacted, they need to understand how exemption certificate management impacts them.

It’s important for historic exemptions to be reviewed, ensuring that any imperfections are found. From there, actionable communication with your customers can be facilitated so they understand what is wrong with the documents and how they can fix the issue. The right tool can also review if any certificates are unaccounted for with actionable Email campaigns that can collect them on your behalf.

Pro tip: Opt for a tool with necessary email functionality to educate customers – old and new – about any exemption requirements or key details they need to know.  

Accelerate audit defense

No one wants to think about audits, but they have to be considered so steps can be taken to try to avoid them. Furthermore, the right preparation ensures that when an audit does take place, all of your information can be easily found to keep the process as simple as possible.

Pro tip: Take control over potential risk before it happens, and even cut your audit preparation to less than one business day. Use software that thoroughly analyzes all data and accounts for all exemption certificates.

Take Action

Reach out to our team to learn how Sovos CertManager can help business with exemption certificate management following an acquisition.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Shelby Toto

Share this post

Hungary Supplemental Insurance Premium Tax
EMEA IPT
July 11, 2022
Extra Profit Tax: An Introduction to Supplemental IPT in Hungary

This blog was last updated on October 28, 2024 Update 7 October 2024 by Edit Buliczka Hungarian Tax Office Updates IPT Declaration Form for 2023 The procedure necessary to correct an underdeclared premium figure in Hungary can be complicated. The complexity of a correction for return form 2320 has become even more challenging. Following a […]

dtc shipping law updates
North America ShipCompliant
November 13, 2024
DtC Shipping Laws: Key Updates for Alcohol Shippers

This blog was last updated on November 13, 2024 When engaging in direct-to-consumer (DtC) shipping of alcohol, compliance with different state laws is paramount and so keeping up with law changes is critical. In 2024, the rules in several states for DtC have already been adjusted or will change soon. Here is a review of […]

sales tax vs. use taxes
North America Sales & Use Tax
November 8, 2024
Demystifying Tax Types: Sales Tax vs. Seller’s Use Tax vs. Consumer’s Use Tax

This blog was last updated on November 8, 2024 One of the core concepts in sales tax compliance is also one of the most frequently misunderstood: the differences between sales tax and use tax. These tax types may look similar on the surface, but knowing the differences is essential for staying compliant and avoiding costly […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
The Insurer’s Guide to the 2025 Bond Project

This blog was last updated on November 4, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
VAT in the Digital Age Approved in ECOFIN

This blog was last updated on November 7, 2024 The long-awaited VAT in the Digital Age (ViDA) proposal has been approved by Member States’ Economic and Finance Ministers. On 5 November 2024, during the Economic and Financial Affairs Council (ECOFIN) meeting, Member States unanimously agreed on adopting the ViDA package. This decision marks a major […]

what is peppol
E-Invoicing Compliance North America
October 29, 2024
What it is PEPPOL?

This blog was last updated on October 29, 2024 Peppol E-invoicing explained: What it is and how it works The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap. While many countries have introduced their own e-invoicing […]