BOSTON, May 5, 2020 /PRNewswire-PRWeb/ -- Global tax software provider Sovos today announced it has acquired São Paulo-based Taxweb, a provider of tax determination software for enterprises operating in Brazil. Tax determination, along with continuous compliance and tax reporting, is one of the three pillars of modern tax and a key element in the Sovos mission to Solve Tax for GoodⓇ wherever companies do business. Taxweb's technology and experience with Brazil's decade-long evolution toward continuous tax controls (CTCs) is applicable in every country with the clearance electronic e-invoicing model, including Chile, Mexico, Italy and others across Latin America, Europe and beyond.
With this expansion of tax determination capabilities in Brazil, Sovos now offers real-time tax rates for value-added tax (VAT), sales and use tax, excise tax, and goods and services tax (GST) in more than 100 countries. Sovos' solutions for VAT compliance also include continuous transaction controls (e-invoicing, e-receipt, e-delivery notes) and VAT reporting. This breadth and depth of offerings is critical for Brazil-headquartered manufacturers, retailers and ecommerce businesses, as well as for multinational companies operating in Brazil.
"Sovos was built to deliver essential technology solutions to companies facing rapid change driven by forces beyond their control. That is particularly important right now," said Andy Hovancik, CEO, Sovos. "Customers are our No. 1 priority, and Sovos will continue to execute on its strategic plan to help them solve their global tax challenges -- challenges that continue to expand and intensify regardless of economic conditions."
Taxweb serves many of the largest retailers in Brazil (including eight of the top 10) with a cloud-first approach and flexible APIs that reflect Sovos' product strategy. In Brazil and other CTC countries, businesses are liable for their suppliers getting tax correct. Sovos has aligned with accounts payable (AP) automation to help large multinational companies solve this issue. And Taxweb's link between tax determination and CTC mandates is unique in the market, with the ability to cross-reference data and reconcile government systems, accounting systems and monthly reporting to reduce the risk of audits and supply-chain interruptions. With the addition of Taxweb's obligation validation and real time supplier tax checks, Sovos and its network of global procure-to-pay providers can automate AP processes still plagued by manual intervention.
"Sovos is everywhere continuous compliance mandates are accelerating: facilitating billions of transactions through procure-to-pay systems in Europe, taking the lead in complex markets like Turkey, and now, fortifying tax determination capabilities in Brazil and other CTC countries," said Cyro Diehl, CEO of Taxweb. "The Sovos culture is a clear fit for our experienced, innovative team, and we look forward to bringing them together."
Steve Sprague, vice president and general manager of the global VAT line of business at Sovos, said, "With traditional channels disrupted by COVID-19, manufacturers and retailers are moving to direct-to-consumer and ecommerce models. At the same time, they continue to adopt cloud applications for billing, procurement, shipping and more. These shifts come with tax implications. The acquisition of Taxweb uniquely positions Sovos to support companies and keep them compliant amid unrelenting change."
"Taxweb is a leader in a mature tax regime that is among the world's most complex, and it has strong partnerships with well-known ERP and point-of-sale providers, as well as top accounting firms. That ecosystem will help speed immediate value to our combined customer base," said John Gledhill, vice president of corporate development for Sovos.
The terms of the deal were not disclosed. Sovos is owned by Hg, the London-based specialist private equity investor focused on software and service businesses. EY served as financial advisor to Sovos, and Morris, Manning & Martin and Veirano Advogados provided legal counsel. TozziniFreire Advogados provided legal counsel to Taxweb and Cypress provided financial advice.
About Sovos
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As VAT and sales and use tax go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, continuous transaction controls, and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
About Taxweb
Taxweb was founded in 2009 and provides tax determination software for enterprises operating in Brazil. The company serves many of the country's largest retailers, including eight of the top 10 retailers. The tax environment in Brazil poses a huge challenge to companies operating in any of the 5,000+ cities across more than two dozen states. With an ecosystem of ERP, point-of-sale and other partners, Taxweb helps customers comply with tax regulations in one of the world's most complex regimes, while reducing operational costs and the risk of tax liabilities.
SOURCE Sovos
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