Sovi AI now automates product tax code classification, enabling faster onboarding and improved accuracy
Sovos, the always on compliance company, today announced the expansion of its SoviTM AI Tax Compliance Cloud platform. The new capabilities introduced include product tax code classifications for Sales and Use Tax (SUT) and data mapping. By using machine learning to analyze source data formats and product attributes to recommend the correct tax treatment, Sovi AI automates some of the most manual and error-prone processes in tax compliance. This helps global organizations improve accuracy and accelerate time to value.
Product tax code classifications are foundational in determining the correct sales tax for every transaction. Historically, this work has required large-scale manual reviews, along with ongoing maintenance to allow for the evolution of product catalogs and changing regulations.
Previous manual data mapping during VAT filing onboardings often became a repetitive cycle of file reviews, field corrections, and reconfigurations whenever data structures or regulatory requirements changed. This functionality has now become automated.
"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," said Kevin Akeroyd, CEO, Sovos. "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 newest addition of Sovi AI drives efficiency across the Sovos Tax Compliance Cloud and supports both Global Tax Determination (GTD) and VAT Filing Services customers:
- Global Tax Determination (GTD): Classify thousands of products faster than ever before - Sovi AI analyzes product attributes from core ERP and ecommerce systems such as SAP, Oracle, and NetSuite to instantly suggest the correct product tax codes with confidence scores, so your team only reviews edge cases while high-confidence classifications process automatically. Whether onboarding new products or adapting to regulatory changes, Sovi AI eliminates the manual mapping that traditionally bottlenecks compliance operations.
- VAT Filing Services: Onboard to Sovos’ VAT Filing Services quickly - Sovi AI automatically maps your source data to compliance ready formats, eliminating the traditional back-and-forth of manual file mapping. When your data structure changes or regulations require new fields, simply update your mapping through AI instead of waiting for our team to reconfigure your integration.
"Through these new capabilities, Sovi continues to deliver on our promise of making compliance a smarter and more automated business function," said Swati Garodia, Chief Product Officer, Sovos. "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 are available by invitation to early adopters, beginning December 2025.
About Sovos
Sovos is transforming tax compliance from a business requirement to a force for growth. The Sovos Tax Compliance Cloud enables businesses to identify, determine, and report every tax obligation worldwide, processing over 16 billion transactions annually across nearly 200 countries. More than 100,000 customers, including half the Fortune 500, trust Sovos’ deep regulatory expertise and end-to-end compliance automation.
For more information about Sovi AI and Sovos solutions, visit sovos.com.
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