Sovos SAF-T Analysis

Assess Accuracy, Integrity and Data Quality to Ensure Compliance with Country-Specific SAF-T Obligations

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Full visibility, user-friendly interface

Automate the process of preparing robust and accurate data structures required for tax and compliance purposes, including SAF-T

A VAT return, like an annual financial statement, consolidates and summarizes lots of information in a format that can be easily read and interpreted. By contrast, a SAF-T report compiles large quantities of diverse data in an XML format. A company’s SAF-T report can be used for auditing purposes, with the tax authority referring to it as a primary source against which all historical tax returns are queried. Ideally, SAF-T data determines whether fraudulent practices or transactions have taken place. However, the format, origins and volume of SAF-T data makes it very challenging for companies to evaluate and interpret what is sent to tax authorities. This unknown creates a major risk for companies, their accountants and advisors.

As part of Sovos’ SAF-T triple play, integral analysis provides a human-readable view of otherwise indecipherable SAF-T data. A summary of findings is presented in a user-friendly interface, pinpointing information inconsistencies and tax anomalies that may expose business problems. Through this deep SAF-T analysis of structured data, Sovos powers internal due diligence to ensure organizations achieve compliance peace of mind. 

Sovos uses a broad set of rules and tests for the accuracy, integrity and quality of data that’s intended for any SAF-T report. It searches for errors in syntax and calculations and to ensure statistical and logical consistency. After the SAF-T report is generated, Sovos analyzes the structured file, giving organizations confidence the XML will be accepted by the tax authority without further scrutiny.

Maximize operational efficiency by revealing information inconsistencies and tax anomalies that may hinder business progress

Decodes SAF-T data and presents results in a standard, logical way that’s readily interpreted and understood prior to submission.

Advances preparedness for inevitable inspections and audits by improving data quality and accuracy as a result of data checks on an ongoing basis.

Pinpoints the source of errors through root-cause analysis, enabling ongoing, seamless navigation through all data. This includes immediate on-screen access to information, such as invoice issued, product sold and account balance when consulting a specific customer account.

Allows audit notes (e.g., explanations, justifications, actions required) to be added to a specific document, error or finding (e.g., billing later than shipment). This guides internal teams on any necessary operational changes and increases transparency by recording contextual information that can be readily accessed during subsequent audit or tax inspection.

Ensures alignment between SAF-T data, financial statements and other interim KPIs that are reported to executive-level stakeholders.

Enables navigation through reports and transactions referenced in the SAF-T data, automating previously manual tasks with live updates.

Mitigates risks of tax exposure/possible disputes, automated checks that mimic automated analysis run by tax administrations on the same data set and allows any data outliers to be addressed prior to submission.

The Sovos SAF-T Analysis module can be used to check and validate the contents of a SAF-T report, whether the Sovos SAF-T Generate module has been used to compile the file or if it’s been generated in another way.