Sovos Acquires U.K.-Based VAT Managed Services Company Accordance

July 7, 2020

Global tax software provider Sovos today announced it has acquired Accordance, a U.K.-based value-added tax (VAT) managed services company. Accordance has been a Sovos partner since 2018 and has implemented Sovos VAT Reporting software to provide technology-enabled compliance services to its clients. The acquisition comes at a critical moment for VAT countries, where businesses face a range of new regulatory mandates, from changes in periodic reporting to continuous transaction controls (CTCs). Companies need to stay flexible during this global, digital transformation of tax, making both managed services and software essential. Sovos’ third acquisition of 2020 will help customers doing business in Europe easily navigate the transition ahead.

Technology is creating opportunities to streamline the integration and analysis of transaction data, enabling both business optimization and government tax control. Technology-enabled managed services give companies the agility to pivot resources as needed in response to these changing tax compliance demands. By combining both companies’ managed services, Sovos can accelerate the introduction of intelligent data integration and data quality dashboards coupled with cloud interfaces for customers to more easily manage any VAT compliance model as regulations evolve.

“Accordance adds a leading service provider with a robust customer base and unique VAT expertise to our growing European organization, strengthening the foundation for future global expansion,” said Andy Hovancik, CEO, Sovos. “With this acquisition, Sovos substantially increases our operations in Europe, where we already enjoy significant scale with more than 2,000 customers being served in the region.”

In addition to supporting companies that engage in business-to-business transactions in the region, Sovos’ expanded VAT managed services reflect increasing compliance demands and risk for global companies selling into Europe. The EU 2021 E-commerce VAT Package will mark a transformation in how sellers and platforms outside the EU can import goods sold to European consumers beginning on July 1, 2021. Designed to close VAT collection gaps on transactions of every size, this e-commerce legislation will require many e-commerce platforms and direct-to-consumer vendors to appoint intermediaries — often managed services providers — to file VAT returns on their behalf. U.K. companies may also be affected by this legislation through the Brexit transition.

Lucy Franklin, CEO of Accordance, said, “VAT legislation is complex and constantly changing, and businesses need the support of both managed services and technology to trade confidently across Europe. As a global company focused on the full scope of VAT compliance needs, Sovos represents an opportunity for our clients, with a single partner for tax compliance everywhere they do business.”

“European countries are eager to increase revenue collection on the rapidly growing value of cross-border e-commerce purchases, leading to significant changes in the way VAT and customs duties will be enforced,” said James Buckley, managing director, Europe, Sovos. “With a broad portfolio of complete, connected software-and-service offerings, Sovos offers unmatched value for a growing number of organizations around the world.”

John Gledhill, vice president of corporate development for Sovos, said, “With an API strategy bolstered by the acquisition of TrustWeaver in 2018, an SAP center of excellence reinforced by the acquisition of Foriba in 2019, and now an expansive managed services team multiplied by the acquisition of Accordance, Sovos continues to advance in its strategic plan to help companies Solve Tax for Good.”

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. EY served as financial advisor to Sovos, and Burness Paull provided legal counsel. RSM served as financial advisor to Accordance, and DMH Stallard provided legal counsel.

About Sovos
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 7,000 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 North America, Latin America and Europe, and is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.

About Accordance
Accordance is an international VAT consultancy and compliance firm, enabling businesses to trade confidently through the provision of expert-led, tech-enabled compliance. Accordance eases the burden that VAT creates by delivering clarity from complexity and ensuring clients are fully compliant. Accordance obtains VAT registrations and handles all the VAT reporting on behalf of their clients, while offering expert advice at every step of the client journey. Its VAT consultants specialize in cross-border transactions and advise companies across the EU and beyond. Accordance is based in Brighton, U.K. and has an office in Amsterdam. It was founded in 2006 in response to Europe’s rapidly changing VAT environment.

Sign up for Email Updates

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

Additional Press Releases

Tax Information Reporting
March 30, 2021
Sovos to Provide Automated Tax Information Reporting for Celsius Network in 2020 Tax Season and Beyond

As largest filer of 1099 forms, Sovos will ensure Celsius crypto investors, borrowers and lenders remain compliant with IRS changes BOSTON, March 30, 2021 – Global tax software leader Sovos today announced that cryptocurrency P2P lending platform Celsius has selected Sovos for its 1099 crypto tax information reporting needs. U.S.-based investors, borrowers and lenders who […]

Read More
North America ShipCompliant
March 24, 2021
Sovos ShipCompliant and BigCommerce Announce Integration via iFuel, Expanding Merchant Support for the Popular Ecommerce Platform

With BigCommerce support via iFuel’s new Alcohol2Consumer integration solution, Sovos ShipCompliant expands its beverage alcohol industry-leading capability to enable compliant, frictionless real-time ecommerce for customers of all sizes and technologies (BOSTON) March 24, 2021 – Global tax software provider Sovos today announced that Sovos ShipCompliant is now integrated with BigCommerce through iFuel’s release of Alcohol2Consumer, an […]

Read More
Tax Information Reporting
March 23, 2021
New InfoBrief Highlights Increased Focus on Payments and Withholding to Gig, Contractors and MLM workers

BOSTON, March 23, 2021 — Global tax software provider Sovos recently sponsored an InfoBrief with global market research firm IDC to examine the heightened need for organizations with a large number of gig workers and contractors to focus on their 1099 and tax withholding management processes. The IDC InfoBrief “Tax Compliance has Entered the Spotlight” […]

Read More
North America ShipCompliant
March 9, 2021
73% of Craft Beer Drinkers Say the Pandemic has Increased Their Interest in DtC Beer, Yet Only 13 States Allow Interstate Direct Shipments

Majority of Consumers and Brewers Want Beer Shipping Laws Updated, Finds Sovos ShipCompliant’s First-Ever Direct-to-Consumer Beer Shipping Report in Collaboration with the Brewers Association (BOSTON) March 9, 2021 – Interest in direct-to-consumer (DtC) shipping of craft beer is strong and growing among regular craft beer drinkers, according to the new Direct-to-Consumer Beer Shipping Report released […]

Read More
Brazil
March 3, 2021
Sovos Acquires Fit Sistemas, Provides Complete, Connected Tax Compliance in Brazil

Following 2020 Taxweb acquisition, Sovos creates uniquely complete cloud solution for Nota Fiscal compliance in Brazil, with tax determination, continuous transaction control compliance and SPED reporting — all three pillars critical for managing modern digital tax BOSTON – March 3, 2021 – Global tax software provider Sovos today announced it has acquired  Brazil-based Fit Sistemas, […]

Read More