Sovos Partners with Tungsten Automation to Deliver Breakthrough Compliant Accounts Payable (AP) Solution

July 09, 2025 at 09:00 AM EDT

Joint offering combines proven AP automation with comprehensive tax compliance to streamline the entire procure-to-pay and compliance lifecycle

Sovos, the always-on compliance company, and Tungsten Automation, the global leader in intelligent workflow automation solutions, today announced a strategic partnership to deliver a truly integrated compliant AP solution. This collaboration addresses the critical business need for seamless integration between accounts payable automation and indirect tax compliance in an era of 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 solution supports both paper and PDF invoice capture using OCR and AI-powered technology for advanced document processing and connects seamlessly with supplier portals while integrating with ERP and procurement systems. It provides global tax determination and ensures real-time compliance with e-invoicing regulations. This seamless approach reduces manual effort, accelerates processing times, and ensures multi-national organizations remain compliant with evolving global mandates - unlocking operational efficiency, audit readiness, and peace of mind at scale.

Addressing a Critical Market Need

Traditional AP workflows remain manual, error-prone, and disconnected from tax compliance requirements, resulting in operational inefficiencies, higher costs, and significant compliance risks. With new global tax mandates such as VAT in the Digital Age (ViDA) and Continuous Transaction Controls (CTC) taking hold, companies can no longer treat AP automation and tax compliance as separate initiatives. Businesses need invoice agility across all platforms and systems.

"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 center into a strategic advantage."

Seamless Integration Delivers Unprecedented Value

The Compliant AP solution works 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 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

"This partnership represents the evolution of tax compliance from a reactive business requirement to a proactive growth enabler," said Kevin Akeroyd, CEO, Sovos. "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."

Proven Partnership Built on Operational Success

This strategic alliance builds upon a long-standing relationship between the companies, with Sovos previously serving as the embedded tax compliance engine within Tungsten's platform. This new agreement formalizes a partnership that has been tested and refined through direct customer feedback and operational success.

The solution offers unprecedented flexibility 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 while achieving up to 90% touchless processing, reducing 70% costs in audit or compliance-related penalties, and cutting per-invoice costs from approximately $10 to less than $2.

Market Impact and Customer Benefits

Key benefits of the integrated compliant AP solution include:

Elimination of manual AP workflows with 90%+ touchless processing
Guaranteed tax accuracy through integrated validation
Dramatic 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 that adapts to existing systems without disruption

About Tungsten Automation

Tungsten Automation, formerly Kofax, is the global leader in intelligent workflow automation solutions with a trusted legacy of 40 years, with a team of 2,200 employees in 32 countries, serving 25,000+ global customers. Our commitment to innovation and customer success has earned us industry recognition, including being named a Leader in Intelligent Automation, IDP and Process Orchestration by key analysts. We are trusted to help businesses gain unprecedented efficiencies and reduce costs through workflow automations that will propel their businesses into the future.

About Sovos

Sovos is transforming tax compliance from a business requirement to a force for growth. Our flagship product, the Sovos Tax Compliance Cloud platform, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes 16 billion+ transactions per year, helping companies scale their compliance strategy in almost 200 countries.

More than 100,000 customers -- including half the Fortune 500 -- trust Sovos' tax and regulatory expertise and unparalleled integration with their business applications. Learn more at sovos.com.