Bodybuilding.com eases its sales tax burden with Sovos

case study

Bodybuilding.com

Bodybuilding.com eases compliance burden with scalable, customisable solution

Summary

Business Challenges

  • Bodybuilding.com was expanding into new jurisdictions

  • Complex reporting requirements necessitated an end-to-end solution

Solution

  • The automated Sovos Sales & Use Tax Determination and VAT solution was implemented quickly and easily

  • The scalable, customisable platform grows as Bodybuilding.com expands

Benefits

  • Increased accuracy reduces risk of errors

  • Staff now has more time to focus on growing the business

The Company

Bodybuilding.com is a premier supplier of health and fitness supplements, which it exclusively sells online. The company has multiple offices around the world and needed a compliance partner to manage its indirect tax needs for its growing e-commerce business. Due to the complexities of multiple taxing jurisdictions and the international nature of the business, choosing an end-to-end compliance partner was imperative to achieving sustained growth and success.

The Challenge

Prior to teaming up with Sovos, Bodybuilding.com required their international customers to self-assess and self-remit sales tax on purchases. This made things easier for its internal teams, but led to increased inaccuracies and negative feedback from unhappy customers. The company needed a solution that was reliable and easy to use, while increasing accuracy and mitigating audit risk.

The Solution

By implementing the Sovos Sales & Use Tax Determination and VAT solution, Bodybuilding.com now benefits from greater accuracy through automation and Sovos’ goods and services codes. Sovos delivers consistency and control over sales, use and value-added tax management. The adaptable, customisable and scalable system is ideal for Bodybuilding.com. As its footprint continues to grow, Bodybuilding.com can simply “turn on” newly applicable products and jurisdictions, as it recently did in France. With Sovos solutions, Bodybuilding.com is able to keep up with the correct tax rules and their growing compliance needs.

“We chose Sovos over their competitors for their software’s ease-of-use and fast implementation. Our IT team felt they could use Sovos more effectively. The integration required less coding, less time to implement and the interface is user-friendly.”

Steve Brooke

Assistant Controller, Bodybuilding.com

The Results

Bodybuilding.com’s partnership with Sovos has eased its compliance burden, substantially increased its accuracy and allowed it to free up its tax and finance personnel to focus on more important tasks. Employees are now able to make more concrete and growth-oriented contributions.

Companies dealing with complex sales and use tax determination, VAT regulations and other tax challenges across the globe know that SAP alone is not equipped to support the varying requirements from country to country. As SAP sunsets support and updates for ECC and R3, companies must move to HANA to keep their systems up to date. With this inevitable change to S/4HANA or HANA Enterprise Cloud, now is the perfect time to step back and develop a comprehensive strategy to managing tax worldwide.

SAP users must migrate to HANA by 2025, but a majority have not yet started the process. Since the move requires major changes to ERP infrastructure, SAP users with global operations should take advantage of the unique opportunity to be more strategic in their implementation. With the right approach, companies can future-proof their solutions in a way that ensures they can keep pace with constant changes in tax regulations throughout Latin America, Europe and beyond.

Learn how to minimise business disruption during an SAP S/4HANA upgrade project in the wake of modern tax: Read Preparing SAP S/4HANA for Continuous Tax Compliance and don’t let the requirements of modern tax derail your company.

Governments around the world are implementing technology for tax enforcement. In order to keep up, companies must make the digitisation of tax a core pillar of their HANA migrations.

In the move to HANA, companies must consider the new world of tax, which includes:

The move to S/4HANA or HANA Enterprise Cloud requires companies to move all of their processes, customisations and third-party add-ons to the new platform. As such, there are several critical considerations.

What to migrate, and when

Since most companies’ SAP ERP systems have been built and customised over many years, many will benefit from a phased approach to HANA implementation. The less customised modules, such as Financial Accounting (FI) and Controlling (CO) will be easier to move than Materials Management (MM) or Sales and Distribution (SD), which will need a long-term plan for customisations.

What to do with customisations and third-party apps

Many SAP configurations have become a patchwork of customised code and bolt-on applications. This is especially true when it comes to sales and use tax determination, e-invoicing, and VAT compliance and reporting, since requirements are vastly different in every jurisdiction a company operates. The move to HANA gives companies the opportunity to consolidate, eliminating local configurations in favour of a global strategy. Companies that proactively plan can help to ensure that the next 15 years are simplified, without the constantly changing configurations needed in the previous 15 years as governments have gone digital.

Take Action

With an upcoming migration to SAP HANA, businesses must consider a solution that maintains SAP as the central source of the truth while keeping pace with constant regulatory change. Learn how Sovos is helping companies do just that, safeguarding the value of their HANA implementation here.