Customer Story
Global Enterprise Future-Proofs Tax Compliance with Sovos Taxrules
Products
Revenue
Employees
Industry
Benefits
of tax determination was manual before Sovos
invoices correctly processed by month
official tax journals pulling real-time compliance rules
municipalities in Brazil for all its products
in projected 3-year savings from automation, audit risk reduction, and technology consolidation
Overview
A top beverage producer in Brazil with over BRL 50 billion in annual revenue and a workforce of more than 41,000 launched a strategic initiative to modernize its tax operations. The company sought to meet the growing demands of Brazil’s digital compliance landscape while reducing exposure to tax risks. Managing millions of monthly transactions and constant regulatory updates, the organization needed a scalable solution tightly integrated with SAP S/4HANA.
After assessing global alternatives, the company selected Sovos Taxrules to automate indirect tax calculations, improve visibility, and ensure continuous compliance—turning tax into a digital enabler for the business.
The Challenge
Operating in a tax environment as dynamic and granular as Brazil’s, the company’s legacy tax processes were no longer sufficient. With more than 3.5 million invoices processed monthly, reliance on spreadsheets and manual controls introduced inefficiencies and significant compliance risk.
Key challenges included:
- Lack of agility to update and apply tax rules across jurisdictions
- Limited tax visibility in SAP S/4HANA transformation phases
- Increasing demand for accurate scenario testing during tax reform
- High resource costs tied to maintaining manual workflows and middleware
The Solution
Sovos delivered a centralized tax determination platform, configured for Brazil’s regulatory landscape and integrated natively with SAP via TaaS. The solution enabled:
- Real-Time Calculation: Dynamic tax logic applied instantly at transaction level
- Automated Rule Maintenance: Monitoring of 27 official sources with continuous updates
- Simulation Tools: Built-in capabilities to model impacts of future tax legislation
- Embedded SAP Connectivity: Reduced need for middleware or bolt-on integrations
The Results
Financial Gains
- BRL 1.8M annual savings from reduced outsourcing, error remediation, and system overlap
- BRL 2.4M avoided in penalties through automated validation and early detection
- Retired legacy tools used for tracking and interpreting fiscal rules
Efficiency Improvements
- 90% decrease in manual tax tasks across departments
- Seamless SAP-native integration streamlined operations and reduced latency
- Full compliance coverage across Brazil’s 27 tax jurisdictions
Risk Mitigation & Scalability
- Ensured up-to-date compliance even amid regulatory reform
- Enabled proactive tax planning through simulation and forecasting tools
- Cut update cycle times for new tax rules from weeks to hours
Business Impact
- Upgraded tax from a manual function to a strategic digital asset
- Improved alignment between Tax, IT, and Finance during SAP rollout
- Established a flexible compliance architecture ready for ongoing reform
Key Metrics
Monthly invoices automated
Manual tax effort reduction
3-year projected ROI
jurisdictions coverage of official tax sources
SAP testing effort reduction
Audit penalty risk reduction
Time to apply new rule updates
Why Sovos?
The company selected Sovos for its:
- Deep integration with SAP for tax automation at scale
- Localized regulatory intelligence backed by real-time content updates
- Enterprise-grade tools for scenario testing and reform alignment
- Track record of enabling global companies to succeed in Brazil’s CTC environment
Conclusion
By partnering with Sovos, this beverage industry leader implemented a resilient tax compliance strategy aligned with Brazil’s digitization goals. Through automation, integration, and insight, the company unlocked operational savings and safeguarded its ERP transformation—redefining tax compliance as a source of business agility and control.