Sovos, the always-on compliance company, and Tungsten Automation, a 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 new partnership brings together Tungsten’s intelligent invoice processing platform with Sovos’ Tax Compliance Cloud to offer a comprehensive solution for invoice automation and real-time e-invoicing compliance. The integration supports both paper and PDF invoice capture using OCR and AI, connects with supplier portals, and integrates with ERP and procurement systems, delivering real-time tax determination, faster processing, and audit-ready documentation.
In a joint statement, the companies said their combined capabilities would help multinational organizations address growing global mandates like VAT in the Digital Age (ViDA) and Continuous Transaction Controls (CTC), while driving down operational costs and risks.
“The convergence of AP automation and tax compliance isn't just an operational advantage, it's become a business imperative,” said Peter Hantman, President and COO of 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.”
From Manual Processes to Intelligent Compliance
The integrated solution moves through five key stages:
- Invoice capture and data extraction using Tungsten’s AI-powered OCR technology
- Automated invoice matching and workflow routing within SAP systems
- Integrated tax determination and compliance validation through Sovos
- Seamless ERP posting with audit-ready documentation
- Real-time analytics and reporting on AP cycle times and tax liabilities
The approach is designed to replace traditionally manual and error-prone AP workflows, which often operate independently from tax compliance functions. As global tax enforcement intensifies, the two areas can no longer be managed in isolation.
“This partnership represents the evolution of tax compliance from a reactive business requirement to a proactive growth enabler,” said Kevin Akeroyd, CEO of 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.”
Long-Term Collaboration Formalized
The partnership builds on an existing relationship between the two companies, with Sovos already acting as the embedded tax engine within Tungsten’s platform. The newly formalized alliance has been refined through real-world customer feedback and operational deployment, giving it a proven foundation.
Notably, the joint solution is system-agnostic, designed to act as a "last mile compliance partner" that can plug into existing ERP or procurement infrastructure without requiring a major systems overhaul. Companies adopting the solution can expect up to 90% touchless invoice processing, a 70% reduction in compliance-related audit penalties, and per-invoice costs slashed from around $10 to under $2.
Strategic Benefits and Market Impact
Key benefits of the Sovos-Tungsten solution include:
- Over 90% automation of AP processes
- Guaranteed tax accuracy through real-time validation
- Significantly lower invoice processing costs
- Faster processing and improved cash flow
- ViDA compliance readiness
- Flexible deployment without business disruption
- With compliance regulations growing more complex across jurisdictions, the partnership positions Sovos and Tungsten as a powerful duo for finance teams seeking both operational efficiency and regulatory peace of mind.
