Sovos Highlights 4 Tax Compliance Megatrends Facing Multinational Companies

▤ Summary

Due to a large increase of cross-border trade in low-value goods and digital services over the past decade, administrations are taking significant measures to tax such supplies in the country of consumption or destination. Ecommerce marketplaces and business transaction management cloud vendors will increasingly be on the hook for sending data from companies on their networks to the government, potentially even inheriting liability for paying their taxes. “Continuous transaction controls have emerged as the primary concern for multinational companies looking to ensure compliance despite growing diversity in VAT enforcement approaches,” said Christiaan van der Valk, lead author of the report and vice president of strategy at Sovos. This holds especially true for the aftermath of COVID-19, when governments are expected to face unprecedented budget shortfalls.” Additionally, this 12th edition of the “VAT Trends: Toward Continuous Transaction Controls” includes a major review of the country and regional requirement profiles. This digitization enables regimes to increase time to enforcement and enact stricter protocols, and consequently, businesses are forced to react with more stringent processes of their own to remain compliant.

▦ Linked Companies

Sovos Compliance, LLC

$250M to $500M