Customer Story

Global Distribution Company Cuts Tax Processing Time by 65% and Achieves a 98% Tax Filing Accuracy with Sovos

Products

Overview

A leading global distribution company operating across North America, Europe, Australia, China and other key international markets, plays a critical role in supplying high-quality, often custom-engineered components. With a strong emphasis on reliability and technical expertise, it serves as a trusted link between global manufacturers and end users who demand precision, consistency, and regulatory alignment. As operations expand and regulatory demands intensify, managing tax compliance has become an increasingly important challenge.

The client was manually handling tax filings across five business entities, processing over 550 filings. This time-consuming and labor-intensive process created inefficiencies, diverting valuable resources and exposing the company to compliance risks and potential errors.

The Challenge

The organization needed a solution to modernize its approach to tax reporting—minimizing time spent on repetitive tasks, ensuring data accuracy, and preparing the business for continued growth.

Key pain points included:

Resource drain – Tax teams spent countless hours on data entry and reconciliation
Error-prone processes – Manual handling increased the risk of miscalculations and compliance errors
Lack of scalability – The existing approach was unsustainable as the company grew

The Solution

By implementing Sovos Tax Determination and Filing Managed Services, the client automated its end-to-end tax management processes. This approach not only optimized their current filing process but also positioned them for future expansion.

Sovos provided:

Seamless automation – Eliminated the need for manual data entry and reconciliation
Improved accuracy – Reduced filing errors and ensuring compliance
Growth readiness – Equipped the business with a platform that evolves alongside its global operations

The Results

With Sovos, the client significantly reduced the manual burden of tax filings, improved accuracy and created a scalable framework for future compliance needs. Within the first reporting cycle, the company achieved measurable improvements:

Time Savings – Reduced time spent on tax filings by 65%, freeing internal resources for higher-value tasks
Error Reduction – Achieved a 98% accuracy rate, minimizing corrections and audit risks
Efficiency Gains – Automated 550+ filings across five entities, eliminating manual data entry
Scalability – Established a streamlined process that supports future growth, with plans to expand into additional Sovos solutions

“Before Sovos, tax filings took up nearly two full weeks every month. Now we’re finishing the same work in just a few days. That shift has made a huge difference in how we manage deadlines and focus on higher-priority tax planning and risk management.”

Head of Tax
Sovos Distribution Industry Customer

Why Sovos?

The client selected Sovos for its deep regulatory expertise, track record of success, and ability to support the full scope of indirect tax needs—now and in the future.

Key reasons include:

Best-in-Class Technology – Automation and integration capabilities that eliminate manual inefficiencies
Regulatory Expertise – Deep knowledge of tax regulations to ensure ongoing compliance
Scalability & Future-Readiness – A flexible solution that grows with the client’s evolving business needs