SOURCE: Sabrix

December 01, 2008 08:00 ET

Sabrix, Inc. Announces Immediate Support of 2.5 Percent VAT Reduction in the United Kingdom

Sabrix Global Customers Seamlessly Achieve Compliance With Confidence, While Millions of Businesses Rush to Make Amendments to Their Systems

SAN RAMON, CA--(Marketwire - December 1, 2008) - Sabrix, Inc., a leading provider of transaction tax management for companies of all sizes, announced the latest release of Sabrix Application Suite, which will ensure immediate compliance with the recently announced 2.5 percent reduction to the Standard Rate of Value Added Tax (VAT) in the UK. Last week on November 24, 2008, the UK Chancellor announced a temporary VAT reduction from 17.5 percent to 15 percent, which took effect today and will remain in place until December 31, 2009.

"Sabrix has a history of being first to market supporting international tax rate changes such as this VAT reduction in the UK. Earlier this year, Sabrix was the first vendor to respond and address the EU VAT Package initiative announced in February (see related release http://www.sabrix.com/news/press-releases/2008/2008-march-VAT.php), and also quickly implemented the 0.5 percent VAT increase announced by the Irish Government in October. Customers can depend on Sabrix to proactively identify and support legislative changes to ensure they continue to achieve compliance with confidence," said Carla Yrjanson, Sabrix's Vice President of Tax Research.

Over two million UK VAT registered businesses are required to make amendments to their systems or risk penalties, interest charges, additional transaction processing time and reconciliation costs. In addition to the immediate changes, businesses will also need to carefully manage the reversion to the old rate on January 1, 2010 as any errors made will lead to a tax loss for the Exchequer.

"For affected businesses, achieving compliance with the new VAT rate will require considerable effort and is expected to cost £300m over two years. However, Sabrix customers will be able to easily address this change," added Yrjanson. "In less than a week, Sabrix updated its systems to include the UK VAT rate change to ensure that clients are able to achieve compliance with the new laws. As other countries, and state and local jurisdictions in the United States, update their respective tax rates in response to the weak economy, Sabrix customers will continue to manage growth, change and complexity."

"The benefits are clear -- organizations that have already deployed international tax automation solutions are much better equipped to deal with changes like those we're seeing in the UK. The level of effort that is needed to implement tax content changes in existing business systems is quite substantial and businesses that use Sabrix today were able to do overnight what others may still be doing in the weeks to come," said Michael Camburn, Managing Director of Ryan International Tax Technology (London), a Sabrix partner.

Sabrix customers achieve higher degrees of compliance at a lower total cost by taking a consolidated approach to managing sales, use, VAT, and other transaction tax types, domestically and internationally. A consolidated approach to tax management also enables lower tax costs and improved cash flow by eliminating penalties, interest and overpayments while expediting revenue collection and VAT recovery.

About Sabrix

Sabrix, Inc. is a leading provider of transaction tax management for companies of all sizes, enabling finance, tax, and IT professionals to achieve accurate, timely, and cost-effective compliance for sales tax, use tax, Value Added Tax (VAT), excise tax and industry-specific taxes and fees. The Sabrix Application Suite™ serves global enterprises such as Amazon.com, BASF, Cisco, DTE Energy, IBM, QUALCOMM, Sportsman's Warehouse, and York International. The Sabrix Application Suite seamlessly connects to all financial applications requiring the determination, calculation, and recording of transaction taxes. The company also offers the Sabrix Managed Tax Service™ (MTS), an outsourced transaction tax compliance service that helps finance departments of small-and-medium-sized businesses eliminate the hassle, control their audit exposure, and reduce the total cost of sales tax, use tax, and VAT compliance. Sabrix MTS seamlessly integrates with a company's existing accounting and e-commerce systems, and, similar to outsourced payroll services, operates as a trusted extension of a company's finance department to address tax compliance from start to finish: address validation, tax rate maintenance, tax determination and calculation, returns preparation and filing as well as audit research and documentation. For more information, please visit www.sabrix.com.

Sabrix, Sabrix Application Suite, Sabrix Managed Tax Service and Sabrix MTS are trademarks of Sabrix, Inc. All other company and product names are trademarks or registered trademarks of their respective holders.

Contact Information

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