Changing regulations, market drivers and geopolitical issues have changed the game for organizations trying to avoid the pitfalls of modern tax
BOSTON, MAY 25, 2021 – Global tax software provider Sovos recently sponsored an InfoBrief with global market research firm IDC to examine the growing complexities of global value-added tax (VAT). The IDC InfoBrief, “Taming the Value-Added Tax Beast with Technology”, explores the driving forces behind the VAT evolution and why it has led to increased complexity for organizations conducting business internationally. Examining multiple market influences such as Brexit, COVID-19 and the emergence of digital services, this InfoBrief explains why VAT requires a global approach for companies looking to ensure compliance and reduce financial and reputational risk.
With the tax gap continuing to increase globally, regulatory authorities have embraced the digitization of tax to increase revenue by eliminating suspicious supply chain activity and VAT fraud. This has provided a greater degree of control in implementing necessary reforms and changes. Digitization has also lessened the burden on compliance by reducing paper trails through the automation of systems. Perhaps most importantly, it has allowed for the sharing of data between countries for cross-border transactions which has been plagued by inefficiencies and fraud.
“We have reached a point in the evolution of VAT compliance where localized point solutions can no longer keep pace with the demands of governments looking to close tax gaps and increase revenues,” said Oscar Caicedo, vice president, product management, Sovos. “Attempting to manage the complexity of modern VAT through disparate IT systems creates support and maintenance challenges that are essentially unsolvable.”
This IDC InfoBrief provides in-depth analysis of why businesses need to consolidate and standardize platforms and IT processes to effectively implement compliance processes to create greater agility to capitalize on emerging markets. By having a single source of truth for data and reporting, organizations can better protect themselves against audits, fines and penalties.
“VAT continues to evolve at a breakneck pace as global conditions and new capabilities made possible through the digitization of tax are influencing laws and regulations,” said Kevin Permenter, research manager, enterprise applications, IDC. “To be successful, organizations need a global approach to VAT that allows for increased flexibility and accountability as governments are demanding more documentation in shorter periods of time.”
Get your complimentary copy of the IDC InfoBrief now to ensure your organization is prepared to respond to the growing complexities of global VAT.
Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction control compliance, tax reporting and more. The company supports more than 16,000 customers, including half of the Fortune 500, operating in over 70 countries. Its 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 http://www.sovos.com and follow us on LinkedIn and Twitter.