Sovos and Tungsten Automation have formalised a strategic partnership to integrate accounts payable automation with tax compliance capabilities, responding to increasing global regulatory complexity.

The collaboration combines Tungsten's AP automation platform with Sovos' tax compliance cloud to create what the companies claim is a comprehensive solution for invoice processing and global tax compliance.

The partnership builds on an existing relationship where Sovos previously served as an embedded tax compliance component within Tungsten's platform. The new agreement formalises this arrangement following what the companies describe as "direct customer feedback and operational success."

The integrated solution targets organisations facing new global tax mandates including the EU's VAT in the Digital Age (ViDA) initiative and Continuous Transaction Controls (CTC). While these are European requirements, similar digital compliance trends are emerging globally as tax authorities modernise their systems and reporting requirements.

In Australia, the Australian Taxation Office has been implementing realtime reporting requirements and digital service obligations, creating parallel compliance challenges for organisations with international operations.

Technical Integration

The combined platform provides AI-powered optical character recognition for invoice capture, automated matching against purchase orders, realtime tax determination, and integration with ERP systems including SAP.

It provides global tax determination and ensures real-time compliance with e-invoicing regulations

"The convergence of AP automation and tax compliance isn't just an operational advantage, it's become a business imperative," said Peter Hantman, CEO, Tungsten Automation.

"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 centre into a strategic advantage."

Sovos CEO Kevin Akeroyd described the collaboration as "futureproofing" customer operations against evolving regulatory requirements.

The solution is positioned as source system-agnostic, connecting to existing infrastructure without requiring system replacement.