Sovos has announced an expansion of its Sovi AI Tax Compliance Cloud platform, introducing new capabilities for product tax code classifications for Sales and Use Tax (SUT) and data mapping. These enhancements utilize machine learning to analyze source data formats and product attributes, recommending correct tax treatments and automating processes traditionally prone to manual errors, thereby aiming to improve accuracy and accelerate time to value for global organizations.
Product tax code classifications are fundamental for accurate sales tax determination in transactions. Historically, this has involved extensive manual reviews and ongoing maintenance to accommodate evolving product catalogs and regulatory changes. Similarly, previous manual data mapping during VAT filing onboardings often resulted in repetitive cycles of file reviews, field corrections, and reconfigurations with changes in data structures or regulatory requirements. These functions are now automated within the Sovi AI platform.
Kevin Akeroyd, CEO of Sovos, stated, “With the launch of Sovi AI, we set out to reexamine how compliance is managed inside an organization – identify the inefficiencies, eliminate the redundancies and create scalable processes across the business.” He added, “The latest release of Sovi delivers on this goal by replacing manual and mundane tasks with tax compliance intelligence that learns, adapts, and is flexible to the needs of the individual customer.”
This expansion of Sovi AI is designed to enhance efficiency across the Sovos Tax Compliance Cloud, supporting both Global Tax Determination (GTD) and VAT Filing Services customers. For Global Tax Determination, Sovi AI can classify thousands of products rapidly by analyzing product attributes from core ERP and e-commerce systems such as SAP, Oracle, and NetSuite. It suggests product tax codes with confidence scores, allowing teams to focus on edge cases while high-confidence classifications are processed automatically. This automation is intended to eliminate manual mapping that can create bottlenecks in compliance operations. For VAT Filing Services, Sovi AI automates the mapping of source data to compliance-ready formats, streamlining onboarding. If data structures change or new regulatory fields are required, updates can be made through AI rather than manual reconfiguration.
Swati Garodia, Chief Product Officer at Sovos, commented, “Through these new capabilities, Sovi continues to deliver on our promise of making compliance a smarter and more automated business function.” She further noted, “By embedding Sovi AI into core workflows, we are reducing the business’ dependency on manual resources, increasing accuracy, and helping customers stay one step ahead of evolving tax rules.”
The new product tax code classifications and data mapping capabilities will become available to early adopters by invitation, starting in December 2025.
Sovos specializes in transforming tax compliance by providing its Tax Compliance Cloud, which enables businesses to identify, determine, and report tax obligations globally. The platform processes over 16 billion transactions annually across nearly 200 countries. Over 100,000 customers, including a significant portion of the Fortune 500, utilize Sovos for its regulatory expertise and compliance automation solutions.
