Sovos and international customers

International customers, with the exception of Canadian, should not be charged tax. There are two options for handling this in Distribution SX.e:

• Set up customer records in Customer Setup, and specify IT in the State field. Specify 00000 in the Zip Code field. When these values are present, Sovos's Sales and Use Tax System VeraZip application accepts this record as valid, but does not calculate a tax. Because this state and Zip code combination does not print on the invoice that is mailed to the customer, you must manually address envelopes, using the correct international address format. A custom modification is required for Distribution SX.e to print the correct address stored in a note on the sales order.
• Set up customer records in Customer Setup and Customer ShipTo Setup as nontaxable with a reason code for International; nontaxable reason codes are set up in SA Table Code Value Setup. The State and Zip Code fields can be used for the country and postal code, but you must select the correct country in the Country field. If the value in the State field is not United States, Canada, or is blank, the value is recognized as an international location by Sovos Sales and Use Tax system. The values IT and 00000 codes are passed to VeraZip. Use this second option to ensure that the correct mailing address format is printed, especially on sales orders.

If you have to compute tax on a lot of international sales transactions, you can integrate with Sovos instead of Sovos Sales and Use Tax system. Sovos calculates Value Added Tax (VAT), Goods and Services Tax (GST), sales tax, and consumption tax, and handles reporting and compliance for multiple countries.