IDC #lcUS43639718 Sovos adds to their Compliance Product Portfolio with Announcement of Cloud-based Use Tax Cloud Solution March 16, 2018 By: Kevin Permenter IDC's Quick Take On March 5, 2018, Sovos announced a new cloud solution for use tax. The solution automates use tax determination for purchases. The product was demonstrated at the SAP Ariba Liveevent which was held March 5-7 in Las Vegas, Nevada. The announcement adds more fuel to the rapidly growing cloud tax automation software market. Product Announcement Highlights Use tax is often misunderstood and underestimated part of tax compliance. Use tax is similar to sales tax in that it is a transaction tax placed on good and services. However, for use tax the burden to pay the tax shifts from seller to the buyer which adds an additionally and tedious layer of complexity to already complex procurement processes. Many companies, especially companies with limited tax management resources, struggle with complying with use tax remittance. Sovos has created a solution that is directed at use tax throughout the complex procure-to-pay cycle. As supplier networks continue to become more complex many companies are looking to find software to help them cope with the growing tax and audit burden. The new cloud -based use tax software from Sovos has the following capabilities: Use Tax Invoices –One of the foremost issues with use tax is identifying the invoices where use tax is applicable. This solution uses an advanced analytics package to enhance data to help managers identify the invoice that need attention. Over/under Charges –Once invoices have been processed, companies often struggle to understand if they hit the mark in terms of use tax payments. Sovos provides a view into over/under payments of use tax via pre-built reports for Total Use Tax Obligation, Use Tax Paid, Use Tax Accrued, Overcharges by Vendor, and Tax Rate Variance by Vendor. Procurement Application Integration–Getting data from your core procurement management systems into your tax management applications can also be a struggle for many companies. Sovos's new use tax tool provides an import mapping tool for tax teams to consolidate purchase information from multiple data sources and do the analysis in batch on a weekly or monthly basis when it’s convenient for them. This can help supplement or overcome some of the challenges of real time AP tax integrations only calculating tax on a portion of purchases. Rules Management and Configuration-Sovos's new use tax solution allows users to modify and configure new rules based on repeat purchases and work with vendors to avoid future errors and to save time©2018 IDC#lcUS436397182 IDC's Point of View Incorrect use tax is a pain point for many companies and this solution will be a welcomed entry into the rapidly growing cloud-based sales and use tax software category. The product demonstrated at the SAP Ariba event showed that Sovos has the pulse of themarket regarding the pain around sales and use tax management. Importantly, this solution is seated within the larger compliance software product portfolio for Sovos which means that companies looking for use tax solutions also have the option to engage with Sovos on other purchasing related aspects of compliance including 1099 reporting, Value- added tax (VAT) reporting and E-invoicing. The solution is targeted to mid-market companies that are looking for a solution that gives tax teams more control, is flexible and quickly implemented. To that end, I believe this solution will be well-received in the targeted market. Subscriptions Covered: Enterprise Applications Please contact the IDC Hotline at 800.343.4952, ext.7988 (or +1.508.988.7988) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC or Industry Insights service or for information on additional copiesor Web rights. Visit us onthe Web at www.idc.com. To view a list of IDC offices worldwide, visit www.idc.com/offices. Copyright 2018 IDC. Reproduction is forbidden unless authorized. All rights reserved.Next >