Sovos Compliance acquires Invoiceware International

The acquisition is a step towards expansion of the company’s capabilities in Latin America and adding the industry’s solution for handling electronic invoicing and fiscal reporting in multiple countries from a single platform.

The announcement was welcome news to the company’s more than 500 multi-national clients, according to Sovos. Multi-nationals have expressed significant concern in recent months over increasingly burdensome compliance obligations around the world.

Latin American countries have been quickly implementing onerous electronic invoicing fiscal reporting mandates and enforcing them with electronic audits, dramatically reducing tax gaps in the region – while at the same time increasing risk and costs for multi-national businesses.

Brazil’s well-documented success in increasing value added tax collections by more than $50 billion has kicked off a flood of mandates across the region that is expected to lead to 98% adoption of e-invoicing by 2024. Yet, while mandates have spread quickly – five new countries have introduced e-invoicing since 2015 – solutions to handle the obligations have been slow to emerge. The software options that do exist are generally focused on a single country or a single process, leaving multi-national companies with large regional tax liabilities with no single provider to trust.

With the acquisition of Invoiceware, Hovancik is aiming to build on Sovos’ existing Latin American value added tax solution to offer the only multi-country platform for the region, a step closer to his goal of offering the first complete global solution for multi-national companies.

Sovos, which is backed by London-based HgCapital and Vista Equity Partners, currently helps some of the world’s largest companies consolidate their compliance solutions for Latin America, EMEA and North America. Invoiceware successfully supports dozens of multi-national companies itself, including The Coca-Cola Company, Kellogg and Pfizer, and its solution will be available immediately to Sovos clients.

In addition, Sovos plans to expand its presence in Latin America to better support its current and future multi-national clients, starting with Invoiceware’s Sao Paulo location.