SOURCE: Sabrix

March 20, 2008 05:07 ET

Sabrix®, Ltd. Enables Customers to Proactively Handle Compliance Measures in Preparation for New Rules in European Union VAT Package

Upcoming Webcast to Help Tax Professionals Grapple With Ever-Changing VAT Landscape

LONDON--(Marketwire - March 20, 2008) - Sabrix®, Ltd. announced today that it is the first indirect tax automation vendor to specifically address how companies can reconfigure their accounting systems and tax processes in response to the new EU VAT Package announced on 12 February. Planning is currently underway to help Sabrix customers remain compliant with the new rules, and save considerable change management costs.

The first phase of the new VAT Package, which introduces the change in the place of supply rules, is scheduled to take effect on 1 January 2010. This change ensures that most types of services will be taxed in the Member State of consumption. In addition, there are new mandatory reporting obligations for EU businesses that supply services throughout the EU.

To address these changes, Compliance Week will host a webcast on 27 March at 6 p.m. GMT (2 p.m. EDT) presented by Deloitte Tax LLP and its U.S. alliance partner, Sabrix, aimed at helping companies operating in the EU to cope with the ever-changing VAT landscape, and provide a variety of solutions including a plan to adjust service flows. (Register: http://www.iian.ibeam.com/events/comp001/25272/)

"Virtually every business that engages in cross-border trade stands to be affected in some way by the recent VAT changes," said Marc Hoessels, Partner of Tax Management Consulting at Deloitte in Belgium. "During an ERP implementation, companies must ensure that their VAT determination and reporting processes are Sarbanes-Oxley and tax compliant. More companies may consider the implementation of an indirect tax management solution interacting with their ERP systems, as it allows tax directors and CFOs to concentrate on preparing their business to take advantage of the changes rather than spend time and money updating their IT systems."

Sabrix Makes VAT Package Compliance Easier

While achieving compliance with the new VAT rules will require considerable effort and add a significant burden to tax departments inside EU businesses, Sabrix customers will have the advantage of a consolidated approach to proactively address changes. In particular, Sabrix users will simply download the up-to-date tax content that will enable them to achieve compliance with the new laws.

"The change in the place-of-supply rules is one of the biggest VAT impacts seen in the European Union in many years," said Judith Burke, VAT Manager for Sabrix Tax Research. "Sabrix is proactively addressing the issue for our customers today so that they can be ready and compliant when the changes go into effect in 2010. As a company, we remain committed to enabling our customers to achieve faster and more consistent business results through our enterprise-grade tax technology and content as compared to less sophisticated solutions."

About the VAT Package

The new VAT package establishes new rules for determining the place of taxation for services and it minimises regulatory burdens on businesses engaged in cross-border trade. The package covers VAT for e-commerce, place of supply and the establishment of a one-stop-shop for a business to help ensure it's compliant with rules. These changes, together with changes to the procedure for reclaiming VAT incurred by EU businesses in Member States where they are not established, as well as new reporting obligations, are scheduled to take effect in 1 January 2010. The VAT package includes Council Regulation (EC) No 143/2008, Council Directive 2008/8/EC and Council Directive 2008/9/EC.

About Sabrix

Sabrix, Ltd., 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, 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 Managed Tax Service, and Consolidated Transaction Tax Management are trademarks of Sabrix, Inc. All other company and product names are trademarks or registered trademarks of their respective holders.

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