Sovos

Sovos is a global tax compliance platform that automates regulatory reporting including VAT determination, 1099/1042-S filing, e-invoicing, and tax withholding across multiple jurisdictions. It focuses on the regulatory reporting and compliance layer rather than tax preparation.

Accounting firms use Sovos to manage clients’ compliance obligations, particularly in cross-border and multi-jurisdictional scenarios where regulations change frequently. The platform handles e-invoicing mandates (which are expanding across Europe and Latin America), real-time VAT reporting, and US information return filing at scale. Its unified approach covers both direct and indirect tax reporting needs.

Sovos is best suited for firms serving mid-market and enterprise clients with international operations, complex reporting obligations, or high volumes of information returns. Firms that only handle domestic income tax compliance typically do not need it.