Sovos

Sovos is a global tax compliance platform automating regulatory reporting — VAT determination, 1099 and 1042-S filing, e-invoicing, and withholding — across jurisdictions, focused on the reporting and compliance layer rather than tax preparation.

How accounting firms use it

Firms advising internationally active clients use it to keep pace with regulatory change that no team can track manually. E-invoicing mandates in particular have expanded rapidly, and requirements differ by country in format, timing, and whether clearance is needed before an invoice can be issued.

The consequence of falling behind is operational rather than administrative: in clearance regimes a business that cannot submit a compliant invoice cannot bill its customers in that country. Firms tend to become involved when a client is expanding into a new market and discovers the requirement late.

Key features

E-invoicing compliance covers country-specific formats and clearance processes across the jurisdictions where mandates apply, updated as regulations change.

VAT determination and reporting handle real-time and periodic filing obligations, with currency handling and jurisdiction-specific rules.

US information return filing covers 1099 and 1042-S at volume with withholding calculation, letting firms consolidate domestic and international reporting.

ERP integration covers SAP, Oracle, NetSuite, and Microsoft Dynamics 365 so compliance runs from transaction data rather than manual extracts.

Who it’s best for

Firms serving mid-market and enterprise clients with international operations, cross-border invoicing, or high volumes of information returns — particularly where e-invoicing mandates apply.

Firms handling only domestic income tax compliance have no need for it. Avalara and Vertex are the alternatives where the requirement is transaction tax determination rather than regulatory reporting, and Tax1099 covers US information returns alone at lower cost.