Colorado Makes Sovos Compliance Only Integrated End-to-End Sales Tax Solution; Software Users Will Be “Held Harmless” for Tax Gaps
Boulder, Colorado (PRWEB) August 04, 2016 -- Sovos Compliance, a global leader in tax and business-to-government compliance software, received certification of their address database from the Colorado Department of Revenue, guaranteeing accurate sales and use tax calculation on every transaction in Colorado and including a “hold harmless” provision for Sovos’ clients using its software. Companies can now use Sovos in order to navigate the challenging calculations involved in determining tax liability.
Colorado law allows the State to certify the accuracy of third party vendors’ databases that are used to determine the tax rates and boundaries of taxing jurisdictions. Often referred to as the “hold harmless” provision, this designation means Sovos’ clients will not be liable in the event that sales and use taxes are calculated incorrectly in Colorado and state-collected jurisdictions, because the State has confirmed that the address look-up and rates in the software are accurate. Access to solutions leveraging this certified database are available to clients today in Sovos products. In addition, Sovos will provide the public with the ability to research tax rates by address using this new certified database with an online tool scheduled to launch in August.
Colorado assesses a state-level base tax and over 220 local jurisdictions also assess sales taxes, some of which are state-administered and others are collected by these local entities. This local tax structure creates a complex web of overlapping tax jurisdictions, which can make it very difficult for businesses to know exactly which taxes apply at a given address. That means that companies operating in Colorado are spending a lot of time and money staying compliant with the state’s varied sales and use tax laws, instead of directing their resources to drive business growth initiatives. In addition to enabling easier compliance by these companies, this certification assures Sovos’ clients that sales and use tax is determined correctly on every transaction in the state.
In November 2015, the Colorado Office of the State Auditor released a Performance Audit Report of the Department of Revenue for local sales taxes, finding that the department could improve its performance by “obtaining a geographic-information-system (GIS)-based mapping application…that is capable of plotting business site addresses and determining applicable sales tax jurisdiction and corresponding GenTax location codes.” The Department of Revenue has tapped into the state’s strong software and technology industry to create this mapping application at no cost to the state. As a result of private-public partnership with the State of Colorado, Sovos has created this jurisdictional database and will deliver the GIS-mapping application as part of their ongoing commitment and collaboration to help the Department of Revenue improve its performance and service to the taxpayers of Colorado.
“The Colorado Department of Revenue is committed to making it easier for businesses to understand and stay compliant with the State’s sales and use tax laws. We take the findings of the Office of the State Auditor seriously and have found a cost-effective way to respond by leveraging the private sector expertise to develop this mapping function in a way that benefits all parties – businesses, customers, as well as the State and local jurisdictions who rely on this tax revenue to fund essential government functions,” said Eric Myers, Taxpayer Service Division Director, Colorado Department of Revenue.
“We’ve been impressed with the Department of Revenue’s actions to automate tax compliance in the state. This is a great example of how governments can help businesses thrive in their states by removing barriers to compliance,” said Matthew Walsh, vice president of tax at Sovos Compliance. “Sovos has been partnering with the State of Colorado for years, and we look forward to deepening this relationship. This certification gives our clients continued peace of mind knowing that our software is guaranteed by the Department to be correct.”
Business leaders can learn more about best practices for compliance with these laws directly from a representative of the Colorado Department of Revenue at SovosCon 2016 in Baltimore, MD, on October 18-19, 2016.
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Visit http://www.Colorado.gov/tax to find out more about filing and paying sales and use taxes in Colorado. Resources are available at https://www.colorado.gov/pacific/tax/local-sales-use-tax-by-address and http://www.Colorado.gov/RevenueOnline to look up the local sales and use tax rates owed to the State of Colorado and state-collected jurisdictions.
Sovos Compliance is a global leader in tax and business-to-government compliance software, enabling businesses to grow globally by reducing the risks and costs associated with compliance in thousands of tax jurisdictions around the world. With a 35-year track record of success in compliance and the broadest library of tax rules and rates in the world, Sovos helps finance, tax and HR professionals in 4,500 companies, including half of the Fortune 500, stay ahead of complex and fast-changing government regulations. The company’s compliance platform integrates with a wide variety of business applications, providing the control and visibility required to manage global tax compliance activities. Based in Boston, Sovos has offices throughout North America, Latin America and Europe. For more information visit http://www.sovos.com.
Heather Rubash, Sovos Compliance, +1 (612) 385-3006, [email protected]
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