In less than six months, Poland is going to introduce its long-awaited CTC clearance e-invoicing mandate – a tax reform that will impact a large amount of businesses.
It has been possible to issue and receive e-invoices voluntarily via Krajowy System E-Faktur (KSeF) since January 2022, but from 1 July 2024 it will become mandatory for suppliers and buyers that are in scope of mandatory e-invoicing to do this via KSeF.
A detailed understanding of the new regime, plus timely and proper preparation, is critical for compliance. Whilst there is a six-month grace period on financial penalties, non-compliance can negatively impact your business in many other, often unexpected, ways.
In this 45-minute deep-dive webinar, Marta Sowińska from our Regulatory Analysis and Design team will cover:
Join us on 8 February at 2pm GMT | 3pm CET for a thorough review of the Polish KSeF e-invoicing mandate and the opportunity to submit your questions.
Constandi to lead customer success and engagement to drive recuring revenue and customer retention
ATLANTA, JANUARY 9, 2024 – Global compliance technology solutions and services provider Sovos today announced the appointment of Dominic Constandi as its new Chief Customer Officer. In this role, he will initiate and drive customer programs that maximize customer value, ensure client success, and leverage the Sovos portfolio of best-in-class solutions and services to deliver true confidence to businesses navigating the complex regulatory environment. Constandi brings more than 20 years of global customer expertise to Sovos, with extensive experience leading cross-functional teams within the financial services and technology sectors. Known as a creative and analytical leader, he has a proven track record of building strong teams within successful organizations.
“Ensuring the success of our global customers is at the heart of everything we do, which is why our commitment to building the strongest possible customer partnerships is unwavering,” said Kevin Akeroyd, CEO, Sovos. “With his diverse and extensive experience leading customer success programs, I am confident that Dominic has both the drive and perspective to lead our global practice. I am thrilled to welcome him as part of our executive team.”
Constandi joins Sovos most recently from ZoomInfo where he served as chief customer officer. In this role, he grew the customer experience team from 60 to more than 500 employees, scaling it globally across all customer success functions. Prior to ZoomInfo, he held senior-level customer experience roles at Eze Software, where he oversaw a customer success organization responsible for more than $400 million in annual recurring revenue.
“My goal is always to create long-lasting customer relationships in which they view you as a strategic partner, not just a vendor, and I see that same commitment in everything that Sovos does,” said Constandi. “The critical nature of the solutions and services Sovos provides demands strong working relationships to get things right the first time, every time. I couldn’t be more excited to step into this role and lead this talented team to ensure the company’s continued excellence in meeting these customer needs.”
About 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. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
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As tax authorities continue to digitize processes in their mission to reduce fraud and close their VAT gaps, they are introducing requirements that provide greater visibility into a company’s financial operations in the form of Continuous Transaction Controls (CTC).
It would be a mistake to think that being prepared to meet obligations in one of the countries where you operate can simply be replicated in another – CTCs are far from a ‘one-size-fits-all’ solution.
Join us on 24 January 2024 in our latest quarterly VAT Snapshot webinar series where regulatory experts Dilara Inal and Marta Sowinska will examine how tax authorities in Poland, Romania, Israel, Greece and Spain – all simultaneously implementing CTC regimes – are doing so with different sets of requirements.
Don’t miss this opportunity to learn more about these unique regimes and what they mean for your business.
With the rate of change in tax digitization not set to slow down any time soon, it’s more important than ever to keep up with what’s happening where you do business.
This quarter, our VAT Snapshot webinar looks in detail at CTC and e-invoicing implementation timelines across six different countries.
Join Dilara İnal and Carolina Silva from our Regulatory Analysis and Design team for an examination of scope, key timelines and essential milestones for compliance across these jurisdictions.
The webinar will cover:
As always, please bring your questions for our experts in the Q&A at the end.
Stay up to date with the evolving landscape of tax mandates by registering today.
The Electronic Invoicing Law of the Dominican Republic was published on 17 May 2023, mandating e-invoicing throughout the territory as of 18 May 2023.
The law was published in the Official Gazette, whose purpose is to regulate the mandatory use of electronic invoicing in the Dominican Republic, including the establishment of the electronic invoicing tax system and its characteristics, optimisation results and contingencies, as well as the entry periods and tax facilities that taxpayers who take advantage of this system will be granted.
The law includes a Chapter on the Criminal and Tax infractions and penalties for non-compliance and still allows using paper invoices for certain contingencies.
The law applies to natural and legal persons, public or private. It’s also applicable to entities without legal personality domiciled in the Dominican Republic that carry out the transfer of goods, delivery in use or provision and lease of services for consideration or free of charge.
All electronic invoice issuers in the country shall:
The requirement for holographic or handwritten signatures and commercial seals for electronic invoices is fulfilled by using digital signatures supported by a digital certificate.
Electronic invoices cannot be modified once signed digitally and sent to the DGII.
The electronic invoice must comply with the standard format established by the tax authority, which will be validated by computer systems. E-invoices will only be admissible when they comply with this validation.
Electronic invoices will be sent to the authority and the electronic receiver through electronic applications connected to the internet and in an XML file.
The electronic invoice will have a Printed Representation (RI) of the E-CF which will be delivered as a physical document to non-electronic receivers in exceptions. Otherwise, it will be delivered to electronic receivers when they are in contingency so that they can prove and report purchase transactions to the authority and third parties – as well as support tax credit or consumption, and keep the indicated documents as established by current legislation.
The General Directorate of Internal Taxes (DGII) will be the competent authority for validating and certifying the content and integrity of the electronic invoice.
The Electronic Invoicing Tax System is administered by the DGII and will be used to validate and accredit all electronic tax receipts resulting from electronic invoices. It will also validate legal forms or electronic tax documents that modify them and that serve as support to back up expenses and tax credits.
The DGII is also responsible for ensuring the integrity of information that is sent instantly for validation and the accreditation of electronic tax receipts (E-CF).
The three forms of Issuance of Electronic Tax Receipts (E-CF) are as follows:
The electronic tax receipts sent to the DGII will be validated online through the information system, according to the schemes published by the technical documentation and complementary standards that define their structure and behaviour.
Once they’ve been compared and validated against the criteria, the DGII will respond by delivering a response number identified as “trackID” with which the E-CF issuer can consult the document’s status.
There are 10 types of electronic tax receipts or documents as part of the law. These include:
All E-CFs must have an electronic tax receipt number (E-NCF), authorised by the DGII, which consists of an alphanumeric sequence.
The number and type of electronic tax receipt numbers will be authorised according to the economic activity registered in the National Taxpayer Registry (RNC), operational volume, and level of compliance of the taxpayer – as well as the risk profile of the taxpayer, in accordance with the parameters established by the DGII.
The duties required of electronic issues, in order, consist of:
The standard format for the structure of E-CFs is as follows:
Taxpayers must indicate data that modifies or affects electronic tax receipts of credit and debit notes.
The DGII will publish the list of taxpayers required by law to issue E-CF. With the approval of the DGII, taxpayers may agree to extend the deadline for compliance with electronic invoicing regulations.
A voluntary period is provided for all taxpayers who wish to be issuers of electronic invoices before implement the previous calendar. The DGII is providing incentives consisting of tax credits for MIPYMES and Large National Taxpayers.
Looking for further information on e-invoicing in the Dominican Republic? Contact our expert team.
As CEO, Kevin Akeroyd sets the strategy and tone of the company. Kevin can best be described as a leader who embraces transformation and innovation and understands the role that data and analytics play in driving company growth. He is a big thinker who encourages big ideas from his teams and balances those ambitions against the organization’s financial and operational realities.
He believes in being a purpose-driven organization that exists for the greater good. Culture is not a buzzword for him, but something he considers to be the fabric of the company. Kevin understands that having an organization where everyone feels included and can bring their true selves to work everyday leads to better outcomes. As a people leader first and foremost, he cares deeply about our employees, customers and partners as people.
Kevin is well-versed in technology, globalization and go-to-market strategies for sophisticated product portfolios. He understands the complexities of international business and how companies struggle to scale operations across a multitude of different borders, regulations and government overseers.
When not in the office, Kevin spends as much time as possible with his family. He is passionate and always welcomes a conversation about sports, travel, music and mother nature. A good debate about old world vs. new world wine is also something he will also actively entertain.
For more, see Kevin’s LinkedIn profile.
Drone usage has increased significantly in recent decades, far beyond their initial use in the military.
They can be expensive themselves and, equally, can also cause damage to other parties or property, which is why many people and companies choose to insure them. This blog considers the insurance premium tax (IPT) and parafiscal charge treatment of drone insurance.
Sometimes called an unmanned aerial vehicle or UAV, a drone is an aircraft without any human pilot, crew or passengers on board. People can use drones for either commercial or recreational purposes.
Drone insurance is an example of packaged insurance and can include coverage under many regulatory non-life insurance classes.
Although not an exhaustive list, some of the classes of insurance set at the European Union (EU) level that we may see in such insurance are:
As an example of a packaged insurance policy, drone insurance is taxed based on each element of cover. Insurers should therefore apportion their premiums and tax each element accordingly, potentially resulting in many different tax rates in a given country.
First and foremost, it is essential to determine the registered territory of the drone – if it has one. If registered, the location of risk is reasonably straightforward under EU rules. Any IPT or parafiscal charges due will be in the Member State of the registration of the drone because it is considered a type of vehicle, namely an aircraft.
The issue is more complicated when a business or individual has not registered a drone in any country. This is the case with most drones used for commercial purposes if they are under a specific weight threshold. Parallels can be drawn with space insurance here, as the policy can have different risk locations for different coverages.
Any liability or miscellaneous financial loss coverage is taxed where the policyholder has their habitual residence or in the case of legal persons where they have their establishment.
Property coverage, including the storage of a drone in a building for more than the market practice of 60 days, is taxed where the property is situated.
Any coverage relating to the transportation of a drone to and from different locations is a goods in transit risk. The location of risk depends on whether a business or individual is using the drone for commercial or recreational purposes.
If used for commercial purposes, the location of risk should be where the policyholder has their habitual residence or establishment. If used for recreational purposes, then – under EU location of risk rules – the drone should theoretically be treated as movable property taxable in the Member State where it is situated – if it is contained in a building there.
Looking for more information on drone insurance? Speak to our expert team.
Canada’s Border Services Agency (CBSA) has introduced CARM, a new process to modernise and digitalize import of goods in Canada.
The agency’s vision is to deliver a globally leading customs experience that facilitates legitimate trade, improves compliance and revenue collection and contributes to securing Canadian Borders.
CARM, which stands for CBSA Assessment and Revenue Management, is a mandatory multi-year initiative. CARM aims to simplify, modernise and streamline the importing process via the new web portal known as CARM Client Portal (CCP).
The agency will launch all functionalities of the CARM project in a phased roll-out of two releases. The first release has been live since May 2021, and the second will be live on 2 October 2023.
CARM will impact all importers, both resident and non-resident businesses, who import goods into Canada.
CARM is already available for voluntary registration to importers, customs brokers and trade consultants.
From the second release of CARM on 2 October 2023, all importers must register for the online CCP to continue importing goods into Canada. Otherwise, it will impede the importation of goods.
The critical element of CARM is that it consists of electronically communicating information regarding importing goods in Canada to the CBSA. It includes many changes to digitalize the communication process.
The most significant change is introducing a new customs form and abolishing previous forms in paper format. CARM will no longer accept current B2 (request for adjustments) and B3 (customs coding form) forms in a paper format.
The process will replace the forms with the new commercial accounting declaration (CAD).
B2 and B3 forms have been mandatory since 2013. They account for goods imported into Canada by reporting information about the value, classification, country of origin, tariff treatment and exchange rate of imported goods.
The submission of the new digital CAD will automate the customs process as the CARM system will automatically calculate the duties and taxes. The CAD form will enter into effect with the second release of CARM.
With the second release of CARM, the methods available for the electronic submission of the CAD are:
From 2 October 2023, every company that imports goods into Canada must register in the online CARM Client Portal (CCP). Any delay or failure to comply could impede the company’s importation of goods and its supply chain. Do you need help or further information? Just get in touch with one of our experts.
Acquisition holds immediate benefit for customers with complex supply chains and footprints across Europe; furthers Sovos’ long-term global tax engine strategy
BOSTON – December 6, 2021 – Global tax software provider Sovos today announced it has acquired Germany-based TLI Consulting GmBH. The move significantly advances Sovos’ value-added tax (VAT) determination capabilities, with immediate benefits for businesses running SAP. VAT determination is one of three pillars of modern tax compliance, and often the first that multinational companies tackle before addressing digital reporting and complex continuous tax controls (CTCs), like e-invoicing. Sovos will leverage TLI Consulting’s software, consulting services and team to help customers Solve Tax for Good® with complete, continuous and connected solutions for every facet of the digital transformation of compliance.
Sovos is on a years’ long journey to build end-to-end offerings that help businesses infuse trust in every transaction. That journey has included the acquisition and development of global CTC, VAT reporting and SAF-T solutions, and a Sovos Connect Once API for a seamless customer experience across systems that need to comply with a wave of real-time and e-audit VAT mandates. TLI Consulting, Sovos’ ninth acquisition in the past 12 months, continues that journey with enhanced VAT determination for businesses with complex supply chains covering a broad jurisdictional landscape across Europe and beyond.
“Sovos has built the most complete suite of technology and services for frictionless compliance in digitizing economies, with advanced solutions for CTC, SAF-T, VAT reporting and other global requirements,” said Andy Hovancik, CEO, Sovos. “The acquisition of TLI Consulting continues that leadership with heightened capabilities for VAT determination, which is often the first piece of an increasingly complex puzzle companies must solve.”
TLI Consulting has served businesses whose transaction and tax determination needs are too complex or costly to configure and maintain via native SAP and in-house tax experts. The company’s software solution extends native SAP VAT determination functionality, and its consultants have the integration and implementation expertise to ensure that SAP ECC or SAP S/4 HANA enterprise resource planning systems can seamlessly determine the right VAT decisions and tax codes for any outbound or inbound transaction.
“Today’s announcement represents a key building block toward a Sovos tax determination portfolio that now helps customers meet modern indirect tax compliance challenges globally, including in Europe, the United States, Brazil and elsewhere,” said Steve Sprague, general manager, global value-added tax, Sovos. “Together, we’re creating the technology solutions that speed simpler tax determination for every transaction, in every jurisdiction, for every tax regime.”
Sovos’ acquisition of TLI Consulting has immediate potential for positive impact on customers in Germany and throughout Europe. In addition to the SAP software extensions upon which it has built its business, TLI Consulting’s expertise and experience will contribute to Sovos’ global tax engine strategy, which is to ensure any customer system can benefit from indirect tax determination, CTC and SAF-T support through a single integration.
“As we join Sovos, the TLI Consulting team gains the opportunity to help create the one-stop VAT solutions companies crave, while expanding our reach as part of a global technology leader. We look forward to this next phase and the positive impact it will have on our customers and future customers,” said Martin Grote, Sovos vice president of European VAT determination and former TLI Consulting director.
John Gledhill, vice president of corporate development for Sovos, said, “As a global organization with more than 2,300 employees, Sovos will scale TLI Consulting’s software and services business in support of the largest multinational companies with complex business transactions in Europe. With this acquisition, Sovos also establishes operations in Germany and now has employees in 14 countries.”
The terms of the deal were not disclosed. Sovos is owned by Hg, the London-based specialist private equity investor focused on software and service businesses, and TA Associates. EY served as financial advisor to Sovos, and Burness Paull and Luther provided legal counsel. Rödl & Partner advised TLI Consulting.
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Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates. For more information visit www.sovos.com/en-gb/ and follow us on LinkedIn and Twitter.
TLI Consulting offers VAT determination software and associated consulting to support clients in entering VAT processes into their SAP (and other ERP) systems through developing and implementing customized, practical and compliant solutions for accounts receivable and accounts payable processes. Further, TLI Consulting offers SAP solutions for VAT ID validations and VAT reconciliations and analysis.
Sovos Partner Network drives digital transformation of tax compliance for customers while offering significant profit potential and borderless growth to partners
BOSTON – October 6, 2022 – Global tax software provider Sovos today announced the launch of its new Sovos Partner Network designed to guide partners in addressing the critical needs of their customers as they navigate the complexity of digital compliance and changing tax regulations around the world. With access to Sovos’ complete portfolio of compliance solutions, along with its unmatched regulatory and tax expertise, this new program enables partners to bolster their tax compliance offerings and expand their business opportunities.
“Government authorities have gone increasingly digital with the calculation, reporting and compliance of taxes and Sovos continues to invest heavily in tax technology solutions. Collaborating with Sovos allows KPMG to bring both its leading technology and tax and implementation experience to clients,” said Niren Saldanha, Partner, Tax, KPMG LLP.
The Sovos Partner Network was built to align to our partners’ business models, whether they resell, co-sell, implement or embed Sovos solutions. Competitive incentives and other business-related program benefits were designed to assist partners in expanding their businesses in ways that best fit their go-to-market strategies. The modern program includes a rich array of consistent and accessible tools, training and a self-service partner portal. Industry leaders such as Oracle, NetSuite, SAP and KPMG have already partnered with Sovos to increase customer support, in addition to hundreds of other partners across the globe, both large and small. Collectively, these partners share Sovos’ core mission to Solve Tax for Good®.
Sovos’ global commitment to partners extends to Latin America. “EY Brazil brings tax transformation and automation to its clients by leveraging process and tax automation software in the market, such as Sovos Taxrules,” says Giovanni Schiavone, Tax Transformation Partner at EY Brazil. “We conduct ‘Tax Transformation Projects’ that evaluate our clients’ GAPs and then suggest automations using the most advanced features of solutions like Sovos to help create a high-performance tax area, aligned with current and future Brazilian compliance needs.”
The Sovos Partner Network offers many ways to create mutually beneficial opportunities, including:
“Strong partner relationships are a key component of our strategic business approach. This new global program represents the next step in our ability to support the evolving needs of customers in today’s global tax and compliance marketplace,” said Jonathan Eisner, vice president, global alliances and chief channel officer, Sovos. “Investing in a stronger ecosystem that better supports and rewards our partners is a critical part in solving these dynamic challenges.”
To learn more about the Sovos Partner Network or apply to become a partner, click here.
Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe and is owned by Hg and TA Associates. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
It’s a good year to be an IT leader. After far too many years of the phrase “do more with less” being the mantra of most organizations when it came to technology spending, things are finally looking up.
According to research firm Gartner, IT spending will reach an estimated $4.5 trillion in 2022. This represents a 5.1% increase over 2021 and is a much-needed boost for businesses in need of technology updates that may have been placed on the backburner due to the COVID-19 pandemic.
IT departments are also eager to switch focus from just keeping things afloat to more long-term projects that will strategically and successfully support the future of work. This assertion is backed by numbers provided by IT management solutions firm Flexera in its State of Tech Spend Report.
When asked where budgets were being allocated to this year, 54% of those surveyed expected increased investment and resources to be applied to technology that makes it easier and more seamless for employees to work from home. Another 42% of those surveyed stated a newfound willingness to move to the cloud to support the realities of a post-pandemic world. Participants in this survey were all executives and high-level managers in IT with significant knowledge of their organizations’ overall IT budgets, weighed in on what to expect in the year to come.
These findings show the level of importance businesses are putting on hybrid and flexible work environments. The likelihood that working from home, at least in some capacity, is here to stay has IT departments rethinking their strategies to be prepared to tackle any challenges that may arise.
The strategies being outlined by IT departments are sound and inline with the world in which we now exist. However, there is another post-pandemic force at work with the potential to derail the best laid plans and devour a vast amount of budget and resources. Government mandated e-invoicing.
If you work as an IT leader at a multinational company, you likely fall into one of the two following categories. One, you’ve been brought into deal with the new realities of real-time oversight and enforcement from regulatory authorities. Or two, you are about to be brought into the fray with your own internal mandate, solve this problem for good.
Why am I so definitive in this declaration? Because I work with some of the biggest brands on the planet and I am witnessing firsthand the impacts these mandates are having on their IT organization.
When it comes to IT projects, most are not reactionary but the result of careful and methodical planning over a long period of time. However, the government is changing the rules here. No longer are projects and upgrades on your timeline. When they implement new laws and mandates it’s either you move quickly to address the issue and make it right or you pay the consequences which can range from hefty fines to even losing your license to operate.
As government mandated e-invoicing laws quickly ramp up around the world, they represent a credible threat to your IT budgets. IT departments must be prepared for the new realities that accompany government mandated e-invoicing. With authorities now in the data stack of your businesses examining transactions in real-time as they traverse your network, you will need a solution that enables you to deliver the information in the format required in real-time.
Bottom line, compliance is no longer a tax issue. IT leaders and other senior leadership must work together to align business functions across the board. IT needs to ensure the resources and tools are in place to meet government mandated obligations, no matter the company’s industry or location.
A failure to address the problem early will only lead to more complex and costly problems down the road that will absorb critical budgets and resources earmarked for other priority projects.
If you aren’t sure where to start in building your strategy, reach out to our experts.
It might not quite be THAT red phone that’s ringing, but rest assured, management is currently dealing with a serious problem, and they are looking at IT to solve it for them.
There are two things that make Boards and C-Suites nervous beyond all else. Risks that have the potential to impact the bottom line and company/brand reputation. This current issue can do both and fast if not dealt with timely.
I’m talking about government tax mandates.
Now you may ask, haven’t government mandates been around for decades? Why the urgency now? Yes, they have been around for a long time, but they have never existed in their current form or had the ability to impact your operations so quickly.
Allow me to explain. In the past, organizations around the world were required to report on transactions after the fact and pay the amounts they were legally obligated to pay. If they didn’t, the government might get around to auditing them a few months or years down the road and assess a penalty if things were found to be out of order. In the grand scheme of things, it was a minor inconvenience for businesses and not a real deterrent for having faulty processes or negligence.
That all began to change a few years back when governments began looking at a tax gap that was growing with no easy solutions to reign it in. Think I’m exaggerating? According to the 2021 report on the VAT Gap issues by the European Commission, in 2019 alone EU countries lost out on €134 billion in Value-Added Tax (VAT) revenues legally owed to them by businesses.
This was a wake-up call to every country that employs the VAT system of taxation anywhere in the world. Not only were they losing out on much needed revenues, but the problem was growing worse. Something needed to be done and done fast or they wouldn’t be able to fund vital programs in their countries.
Fast forward to today. Countries have taken a serious look at the problem and have decided that technology is the answer. They have invested heavily in digitization and have brought their capabilities not only up to par with business, but in many cases, probably for the first time in history, have surpassed the capabilities of private industry to monitor and report on financial transactions.
Today, there is no more reporting after the fact. Governments have set up shop right in your data stack and are reviewing transactions in real-time. And with real-time monitoring has come real-time enforcement. If you are not reporting the information the way the government has mandated, you can expect swift action ranging from expensive fines right up to the revocation of your business license in that country. Both would be devastating shots to your company’s financial outlook and reputation.
This is why there is so much urgency to get IT on board and have a strategy to address the issue on a global basis. Things are only going to get more complicated and the ability to scale systems to meet changing tax mandates in all places you do business has become a top priority for companies.
It’s a new world out there as far as VAT is concerned and this is a lot to come to terms with. If this is new information to you or you are in the process of coming to terms with how it impacts your organization, I’d encourage you to remember and share the following five things with your colleagues:
1. The government is in your data
Real time tax reporting is becoming the new norm for businesses worldwide. Governments are no longer satisfied with receiving data after the fact and are now requiring a permanent presence in your data stack.
2. Government data mandates are taking control away from companies
With government mandated e-invoicing taking the world by storm, businesses are left with little time to prepare for this shift. To remain operational and comply with these mandates, IT must create a strategy to ensure that they are meeting mandate obligations while keeping with the parameters of long-term plans and budgets.
3. Data mandates are moving and evolving quickly
As governments are rapidly moving towards mandated e-invoicing implementation, organizations are now faced with an extremely short window to update their tax codes and mandates. For IT departments, overseeing and executing these changes will become one of their top priorities.
4. Data mandates lack consistency from country to country
For international organizations staying up to date on new processes, technologies and regulations are all essential components to running a successful business. However, the different approaches being adopted by each individual regulatory authority are causing a lot of uncertainty for businesses. The challenge for IT is to create the infrastructure that allows the business to meet the individual mandates of each country’s regulatory authority, while also integrating with one another to provide a real time global dashboard of the organization’s compliance status.
5. Governments have increased the severity and speed of enforcement
Tax authorities are becoming more aggressive than ever to close tax gaps. With the use of digital tools and processes, governments can quickly expedite compliance and track tax fraud effectively. In today’s digital world, penalties can be swifter and more severe than in the past. IT needs to ensure that transaction data is presented to regulatory authorities in the format and time frame they demand.
I’m hopeful this information will give you some things to think about as you work through the changing realities of global tax mandates.
After reading this, if you have questions, feel free to reach out to our experts.
Part I of V – Steve Sprague, chief commercial officer, Sovos
Government-mandated e-invoicing laws are making their way across nearly every region of the globe, bringing more stringent mandates and expectations on businesses. Inserted into every aspect of your operation, governments are now an omni-present influence in your data stack reviewing every transaction in real time as it traverses your network. Real-time monitoring has also brought about real-time enforcement that can range in severity from significant fines to shutting your business down completely. All of this has created a new reality for IT leaders who need a strategy to deal with these global changes. We asked our chief commercial officer, Steve Sprague to offer his guidance on how this will affect IT departments and how they can best prepare.
Q: With government authorities now in companies’ data and demanding real or near real-time reporting, what impact will this have on IT departments?
Steve Sprague: CIOs need to make a choice – do they pivot with these changes and adopt a centralized approach to their data, systems, business processes and applications, or do they run a decentralized platform where every country is left to make their own decisions? More than 95% of companies have implemented a decentralized approach as these mandates have grown country by country. However, as Latin America has grown from only three countries instituting these mandates in 2014 to more than 14 countries implementing them now, and with another 30 countries around the globe beginning the process of implementing similar regimes, including economies across Asia and Europe, like France and Germany – a decentralized approach leads to several long-term problems, including:
• Limited visibility outside of the country
• Multiple tools and vendors across different countries
• Disjointed processes with a focus on fulfilling local obligations only
• Solving the “problem at hand” vs. looking at the bigger picture
• Poorly defined roles and responsibilities
• Inconsistent approach to implementing additional countries
Q: To meet government mandates and ensure operations continue uninterrupted, what should IT prioritize? What approach would you recommend?
Steve Sprague: IT should focus on the end goal: implementing a centralized approach to these government mandated e-invoicing laws to ensure a globally consistent approach to all digital filings. There will be cost reduction as the number of vendors and tools are consolidated, and risk will be further mitigated through increased standardization and visibility. I can’t overstate the importance of implementation synergies as requirements increase and expand. This is only going to get more complex as time goes on. The clarity of roles and responsibilities is the other benefit to IT teams, as this approach will lead to clearly defined areas of focus for the team. Finally, alignment of analytics through one data hub will now be possible, providing a centralized dashboard for your global operations.
A lot has changed in the world of government mandated e-invoicing. Continued investment in technology by government authorities has put regulators in the position to demand greater transparency along with more detailed and real-time reporting. To meet these demands, companies are looking to their IT organizations. The good news is you don’t need to go it alone. Sovos has the expertise to guide you through this global evolution based on our experience working with many of the world’s leading brands.
Need help keeping up with global mandates? Get in touch with Sovos’ team of tax experts.
As chief financial officer, Kevin leads all finance and accounting related disciplines for Sovos. In this role, he oversees the global practice leads for critical business functions including tax, treasury, corporate development, accounting operations and financial planning and analysis.
Kevin’s business philosophy is to hire the best people, give them a clear set of strategic priorities and then give them the room and support needed to execute on their objectives. He is a veteran of the technology industry having held senior financial positions at Sparta Systems, Honeywell and General Electric.
Kevin’s career to date has presented him with multiple opportunities to live and work abroad, including stops in France and Japan. He credits these experiences for making him a more well-rounded leader who understands the role culture plays in successfully operating a global business.
When not in the office you are most likely to find Kevin exploring the Atlanta area with his wife and two children.
For more information, see Kevin’s LinkedIn profile.
As chief marketing officer, Leah is charged with setting the global marketing strategy for the organization, enabling collaboration and establishing best practices worldwide. Her role is to influence and improve all aspects of the customer journey to drive increased demand for Sovos’ solutions and services.
Leah’s leadership style and business philosophy are rooted in the power of working cooperatively toward a common goal. She believes that when teams are informed and empowered, they will produce their best work. Challenging individuals to achieve excellence while supporting them with the tools necessary to thrive in any environment is a core tenant of her managerial approach.
A career spent leading global marketing teams across different disciplines of fintech have prepared her well to lead in an industry where continuous change is the only constant. She has a passion for helping small businesses succeed through the use of technology, a skill she adopted at a young age working in her parent’s retail business.
When not in the office, it’s likely you will find Leah spending time with her family and friends at the lake, traveling on her next adventure or taking in the latest performance at the theatre.
For more information, see Leah’s LinkedIn profile.
As vice president of Financial Planning & Analysis, Maylin leads our corporate finance function to support Sovos leadership and regional and functional teams in driving growth.
Maylin is passionate about process improvement and leading high-performing finance teams bringing extensive experience in financial reporting, merger and acquisition integration, financial system implementation, and investor relations support to Sovos. Her career spans working at three Fortune 500 companies and most recently at two high-growth private equity-backed companies.
Based in Atlanta, Maylin enjoys spending time at home and traveling with her husband and two teenage daughters.
For more information, see Maylin’s LinkedIn profile.
As vice president and global practice leader for client support, Angelique Stewart is charged with creating and maintaining a world class support experience for Sovos’ customers. With a personal and professional philosophy rooted in the belief that you should never settle for less; Angelique consistently challenges herself and her team to find ways to improve.
Angelique is a champion for her team and works to ensure they are growing professionally and realizing their full potential. She believes that a successful team can only be sustained when you help your people meet their personal objectives while also working to achieve organizational goals.
A first-generation college graduate, her grandparents emigrated to the US from Barbados, she appreciated the drive and strong work ethic instilled in her by her family. This is something that she brings to the office every day and something that she and her husband Marlon, who originally hails from Jamaica, work to impress upon their daughter Amaya.
When not in the office, Angelique is typically attending soccer games with her family and Yorkie Jaxon, cooking or enjoying her favorite music. Travel is a passion of hers and she is always looking for her next adventure.
For more, see Angelique’s LinkedIn profile.
For customer support, see our support page.
Insurance Premium Tax (IPT) can be complex with fragmented rules and requirements levied by the many different tax authorities in the jurisdictions where this tax applies. This only adds to the challenges faced by finance teams when calculating and settling IPT accurately and on time.
Failure to do so can result in penalties, fines and unwelcome audits – all of which will have an adverse effect on profitability.
Unlike other IPT compliance service providers, at Sovos we provide a complete end-to-end service for our customers providing complete peace of mind and allowing them to focus on what they do best while leaving the IPT compliance to us.
We not only produce and file IPT and parafiscal reports for our customers, but we also make the necessary payments and settle liabilities to the relevant tax authorities using cleared funds held in segregated client bank accounts.
We recognise that IPT is niche and not always a core function for finance teams which is why we offer a client money service for our IPT customers. The funds are held in a segregated bank account for our customers with reconciled statements being provided on a monthly basis.
Based on data uploaded we let our customers know in advance the exact amount needed to settle each of their local IPT liabilities as they become due so there’s plenty of time to ensure the funds are available ahead of tax authority deadlines.
Once the funds have been received, we can then ensure the correct payments are made directly to the tax authorities in line with local legislation.
All receipts and payments with the segregated client bank accounts are reconciled with the submitted returns and monthly reports are provided.