Sovos Helps Businesses Grow By Reducing Business-To-Government Compliance Risks

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Sovos Compliance designs solutions to help businesses meet the demands of their unique tax compliance and reporting obligations. Sovos enables over 4,500 clients to operate with the confidence to thrive in today’s dynamic regulatory environment. Below is our interview with Troy Thibodeau, Chief Product Officer at Sovos:

Q: What is Sovos’ core competence?

A: Sovos Compliance is a global leader in business-to-government tax, compliance and reporting software. We enable businesses to grow locally and globally by reducing the costs and risks associated with compliance in thousands of tax jurisdictions around the world.

The Sovos Tax Research Team continually monitors and analyzes complex tax laws and regulations, interpreting their meanings and requirements. We provide insights into the complex and ever-changing world of business-to-government compliance. Some of the topics we cover include:

● Indirect tax (sales, use and value added tax) compliance for businesses ranging in size from large enterprise clients to small Amazon sellers
● Tax Information Reporting, including 10-Series forms (i.e. 1099)
● Affordable Care Act (ACA) reporting
● Beverage Alcohol compliance reporting
● Automatic Exchange of Information (AEOI), a new global standard developed by the Organisation for Economic Co-operation and Development (OECD) intended to reduce the possibility of tax evasion by individuals around the world.

We then take our analysis and interpretation of these complex tax laws and build the required rules into our compliance and reporting software, enabling businesses to achieve compliance locally and globally. We continually monitor these regulations and update our systems to ensure accuracy. This allows businesses to stay compliant without having to put in the time, effort, and money associated with continually monitoring, analyzing, and interpreting ever-changing and complex tax legislation around the world.

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Q: What problem are you solving for clients?

A: According to EY, from 2014-2016, there was a 29 percent drop in the confidence CFOs have in their compliance efforts.

Sovos has a 35-year track record of success in compliance, creating and maintaining a massive library of tax rules and rates for both domestic and international jurisdictions. We help professionals in finance, tax and human resources at 4,500 companies — including over half of the Fortune 500 — stay ahead of complex and changing government regulations.

Q: What advantage does Sovos have over its competitors?

A: We provide the most accurate, complete and current regulatory analysis and insight, combined with local knowledge and a global reach to support businesses around the world. In addition, we have the unique ability to act quickly as the compliance environment continues to change and evolve to ensure that our clients stay ahead of these changes and maintain compliance. This allows them to avoid fines, a negative impact on company reputation, loss of customers and more.

This summer, Sovos became the only integrated end-to-end sales tax solution for sales and use tax compliance in Colorado, one of the most complex sales tax states in the country.

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Q: Who is your ideal customer and why?

A: We focus on businesses that need to solve complex business-to-government compliance requirements and streamline their internal processes.

We provide solutions for businesses across a broad range of situations, ranging from Fortune 500 companies operating around the world to small enterprises operating in just a few jurisdictions and the niche world of compliance for wineries, breweries, distilleries and importers. Clients include businesses operating in Mexico that need to comply with new domestic e-invoicing and reporting obligations, businesses selling around the world that need to comply with reporting obligations in over 100 countries, and financial institutions required to report under AEOI regulations.

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Q: What can we expect from you in the next six months?

A: Sovos is in the business of helping organizations comply with complex and ever-changing business-to-government reporting obligations. The world of tax — including new regulations and new tax regimes — continues to evolve, and our team is monitoring new developments around the world to stay out ahead of these changes and ensure our clients stay compliant.

One of the hottest topics of discussion in the world of sales tax is remote sales legislation, which would allow states to collect sales tax from businesses that don’t have a physical location in their state. Individual states are taking up this legislation in an effort to update regulations to reflect the new digital marketplace that is not confined by state borders. Several state and federal proposals are pending, and the outcomes could have big impacts on businesses, adding levels of complexity in the process to remain compliant with sales and use tax legislation.

Sovos is monitoring these regulations continually. As soon as they go into effect, our software solutions will be prepared to keep our clients compliant.