Sovos Compliance announced this week it will acquire Invoiceware International, a Latin American electronic invoicing solution provider with bases in the U.S. and Brazil. Sovos, a tax business-to-government compliance software company, said it plans to expand Invoiceware’s capabilities for the Latin American region, where governments have strict e-invoicing and tax reporting regulations in place.
“As real-time audits of constantly evolving tax obligations become more common, multinationals are becoming increasingly uncomfortable with their ability to stay on top of their compliance obligations in Latin America,” Sovos CEO Andy Hovancik said in a news announcement. “Invoiceware is the only solution on the market that can help those companies across the entire region, which makes it a natural extension of our global platform and a superior solution for companies that are using a patchwork approach to regional tax compliance today.”
Sovos also plans to provide a multicountry e-invoicing platform, which will aim to help companies operating in Latin America better comply with government e-invoicing reporting mandates.
According to Xavier Olivera, editor of Spend Matters Mexico and Latin America, U.S. and European multinational companies operating in Latin America will likely see real value in the combination of Sovo and Invoiceware.
“Sovos offering a solution that can cover all Latin American countries for e-invoicing and e-reporting regulations will complement and strengthen its tax compliance value proposition to its current multinational clients,” Olivera said.
Latin America has seen rapid and constant changes in tax and e-invoicing regulations in recent years, making it almost impossible for multinational companies to stay on top of all the mandates, Olivera said. These companies face major fines, too, if they do not comply with the different e-invoicing and tax regulations throughout the region.
The acquisition also benefits Invoiceware, Olivera added.
“Tax compliance was definitely the next step for Invoiceware, and with Sovos, it will be able to accomplish that goal,” he said.
Invoiceware CEO Scott Lewin, who will continue to run the business for Sovos as general manager of Latin America, said the company has been impressed by Sovos’ ability to help multinationals solve tax compliance and reporting problems.
“As governments continue to tighten their fiscal reporting standards, our clients have been asking us to help them beyond the Latin American region. We didn’t see anyone else out there that had the capability to keep businesses ahead and out of trouble like Sovos. This is a huge step forward for any company that struggles with business-to-government compliance.”