The 2025 State of Tax Compliance Report
Powered by 16+ billion datapoints and insights across 19,000+ tax jurisdictions, this report reveals the trends, risks, and strategies shaping the future of global compliance.
From federal tax regulations to global mandates, the regulatory landscape now faces an average of 14,000 changes per month worldwide. Tax authorities are becoming stricter, penalties are growing even steeper, and businesses face more risk than ever before. The 2025 State of Tax Compliance Report is your blueprint for navigating these changes, combining expert analysis with Sovos’ unique visibility into billions of global transactions.
Download The State of Tax Compliance Report by Sovos
- Explore the evolution of U.S. tax compliance with its thousands of local jurisdictions, tax form changes and new audit risks.
- Uncover the truth behind EMEA’s transition to real-time VAT compliance, including its frequent rate changes, exemptions and audit exposures.
- Understand triggers and challenges behind the real-time mandates consistent across Latin America.
- Learn what makes Brazil’s enforcement system stand apart from other countries.
- Discover the key investments that are capturing the attention of today’s finance leaders.
Download The State of Tax Compliance Report by Sovos
- Explore the evolution of U.S. tax compliance with its thousands of local jurisdictions, tax form changes and new audit risks.
- Uncover the truth behind EMEA’s transition to real-time VAT compliance, including its frequent rate changes, exemptions and audit exposures.
- Understand triggers and challenges behind the real-time mandates consistent across Latin America.
- Learn what makes Brazil’s enforcement system stand apart from other countries.
- Discover the key investments that are capturing the attention of today’s finance leaders.
Why follow the state of tax?
Tax authorities are embedding themselves directly into business systems, from accounts receivable and accounts payable to general ledgers, eliminating the old model of “after-the-fact” tax return filings. In turn, 82% of businesses believe they are more exposed to tax-related compliance risks than they were just five years ago.
The State of Tax Compliance Report doesn’t just summarize changes; it shows how they connect and where risks emerge so that you can better adapt. This is your annual benchmark and roadmap for navigating the evolving regulatory landscape with confidence.
Why Sovos is a Leader in Global Tax Compliance
- 100,000+ customers including 250+ Fortune 500.
- 16+ billion transactions annually monitored.
- 19,000+ tax jurisdictions tracked worldwide.
- 99.99% uptime for tax determination and integration.
- 137M line items processed on Black Friday, 141M on Cyber Monday