Sovos, a compliance technology provider, and Tungsten Automation, a global leader in intelligent workflow automation solutions, have announced a strategic partnership to deliver a unified compliant accounts payable (AP) solution. This collaboration aims to address the critical business need for seamless integration between AP automation and indirect tax compliance amidst increasing global regulatory complexity.
The partnership combines the Tungsten Automation Platform with Sovos’ Tax Compliance Cloud to create a comprehensive solution for intelligent invoice automation and global tax compliance. The combined offering supports both paper and PDF invoice capture using OCR and AI-powered technology for advanced document processing. It connects with supplier portals while integrating with ERP and procurement systems, providing global tax determination and ensuring real-time compliance with e-invoicing regulations. This integrated approach is designed to reduce manual effort, accelerate processing times, and help multi-national organizations maintain compliance with evolving global mandates, thereby enhancing operational efficiency and audit readiness.
Traditional AP workflows often involve manual processes, are prone to errors, and are frequently disconnected from tax compliance requirements, leading to inefficiencies, increased costs, and significant compliance risks. With new global tax mandates such as VAT in the Digital Age (ViDA) and Continuous Transaction Controls (CTC) becoming prevalent, businesses are increasingly finding that AP automation and tax compliance can no longer be managed as separate initiatives, necessitating invoice agility across all platforms and systems.
Peter Hantman, CEO of Tungsten Automation, stated, “The convergence of AP automation and tax compliance isn’t just an operational advantage, it’s become a business imperative.” He added, “Our partnership with Sovos addresses a critical C-Suite need in how enterprises approach their financial workflows. By integrating our proven automation capabilities with Sovos’ comprehensive compliance expertise, we’re delivering a solution that transforms AP from a cost center into a strategic advantage.”
The Compliant AP solution operates through five integrated stages:
Invoice capture & data extraction: Tungsten’s AI-powered OCR technology extracts data from any invoice format with intelligent validation.
Automated invoice matching & workflow routing: Automated matching against purchase orders and goods receipts occurs within SAP systems.
Integrated tax determination & compliance validation: Sovos provides real-time tax determination at both the network and SAP stages.
Seamless ERP posting: Validated invoices are automatically posted to SAP with complete audit-ready documentation.
Real-time reporting & analytics: Comprehensive visibility into invoice status, AP cycle times, and tax liabilities is provided.
Kevin Akeroyd, CEO of Sovos, commented, “This partnership represents the evolution of tax compliance from a reactive business requirement to a proactive growth enabler.” He further explained, “By combining our deep tax expertise with Tungsten’s automation leadership, we’re not just solving today’s compliance challenges, we’re futureproofing our customers’ operations against an evolving global regulatory landscape. This is exactly the kind of integrated innovation that transforms how businesses operate.”
This strategic alliance formalizes a long-standing relationship between the companies, with Sovos previously serving as an embedded tax compliance engine within Tungsten’s platform. The new agreement builds upon a partnership tested and refined through direct customer feedback and operational success. The solution is designed as a source system-agnostic platform that connects as a ‘last mile compliance partner’ to existing infrastructure without requiring system replacement. Companies can implement the joint solution without operational disruption, potentially achieving up to 90% touchless processing, reducing audit or compliance-related penalty costs by 70%, and cutting per-invoice costs from approximately $10 to less than $2.
Key benefits of the integrated compliant AP solution include:
Elimination of manual AP workflows, with potential for 90%+ touchless processing.
Guaranteed tax accuracy through integrated validation.
Significant reduction in AP processing costs.
Improved cash flow through faster, more accurate processing.
ViDA compliance readiness for evolving EU mandates.
Reduced implementation risk with proven solutions from established market leaders.
Deployment flexibility, adapting to existing systems without disruption.
Tungsten Automation, formerly Kofax, is a global leader in intelligent workflow automation solutions with a 40-year history. The company has 2,200 employees across 32 countries and serves over 25,000 global customers. It has received industry recognition, including being named a Leader in Intelligent Automation, IDP, and Process Orchestration by key analysts.
Sovos, an always-on compliance company, aims to transform tax compliance into a growth catalyst. Its flagship product, the Sovos Tax Compliance Cloud platform, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes over 16 billion transactions annually, supporting compliance strategies in nearly 200 countries. More than 100,000 customers, including half of the Fortune 500, utilize Sovos’ tax and regulatory expertise and integrations.
