Hear what major global companies shared with the Forbes Insight team.
In order to help business and technology leaders prepare for this shift to digital taxation, Forbes Insights—in partnership with Sovos—surveyed 250+ financial and IT executives to capture their perspectives and readiness
Simplification and automation are two major goals of digital transformation, yet they’re put in jeopardy by governmental digital transformations. Now that the technology exists to enforce continuous compliance, more governments are inserting themselves into every transaction a business makes. And changing the requirements whenever they see the potential for more revenue.
This means you need something more in your digital core. Now you need to treat countries as major stakeholders in your core business processes – and keep pace with different formats and continually changing requirements in every one of them.
Converging networks and systems has made companies more efficient, but also made it easier for governments to audit them. Companies now require a 360° integration of tax with ERP and procurement systems to protect against slowdowns due to insufficient tax determination and reporting.
Tracking customer interactions in a single data repository allows businesses to offer relevant information and options any time a customer contacts them. When integrated with a robust tax platform that crosses all business systems, it can also signal taxable events, such as sales, and generate e-invoices in real time to keep you compliant.
For global businesses, there can be a disconnect between where work is performed, where it’s sold and where the taxes are paid. Maintaining compliance gets more complicated by the day, requiring a tax platform that can integrate with multiple ERP and finance systems.
Internet-enabled equipment blurs the line between product and service – especially when subscriptions are involved. Since the two types of sales are often taxed differently, modern manufacturers will require a tax platform capable of integrating with the converged network and deciphering quickly changing tax requirements.
Read the blog post on marketplace facilitator tax collection.
Now that dozens of countries have shifted to continuous enforcement, failure to comply can add significant cost, delay and reputational harm. A complete tax platform that covers determination, e-invoicing compliance and reporting is the only way to ensure ever-changing requirements don’t impact your revenue.
Discover how Sovos made multinational reporting simple for Sun Chemical, allowing their team to consolidate their compliance efforts.
The Other Digital Transformation is raising the stakes for tax compliance. You now need a solution that integrates tax determination, e-invoicing compliance and reporting; supports continuous interaction with governments around the world to maintain compliance; and connects the entire financial software ecosystem.
Explore the first complete solution for modern tax