Sabrix Ltd. Is First Tax Automation Vendor to Respond to the 1 June U.K. Reverse Charge VAT Law

31 mei 2007 Sabrix Software Helps Tax Professionals Grapple With Ever Changing VAT Landscape LONDON -- (MARKET WIRE) -- May 31, 2007 -- Sabrix Ltd. announced today that its customers will be the first to benefit from an immediate and fully automated solution for the most recent change in U.K. VAT law. Recently, the U.K. tax authority, HMRC, mandated that businesses account for a new type of reverse charge which applies to high-volume, high-value goods, such as computer processing chips and cell phones. While many tax departments inside U.K. firms scramble to achieve compliance with the new reverse charge law that goes into effect today, Sabrix customers will be able to simply download up-to-date tax content that enables them to be in immediate compliance with the new UK law. The new law will apply to suppliers of mobile phones and/or computer chips, which have a value of £5,000 or more, and are supplied by one VAT-registered business to another within the UK. The reverse charge applies to all such supplies made on or after 1 June 2007. HRMC's intent is to combat missing trader intra-community fraud -- known as MTIC fraud or carousel fraud -- which results in the loss of as much as £4.75 billion in annual VAT revenue. In simple terms, the reverse charge shifts the VAT responsibility to the customer, reducing the risk of fraudulent claims of input tax. Instead of the supplier charging output VAT as they have in the past, the customer will now reverse account the VAT as it is currently accounted for imported services. "Most firms affected by the new HRMC law are challenged to comply with the 1 June deadline due to the time required to make the complex changes to their tax systems," said Judith Burke, VAT Manager of Sabrix Tax Research. "Our customers can achieve full compliance with the new law, in a matter of minutes, with a simple download from our customer portal." "For years, Sabrix has led the market with the most robust and full featured VAT solution," said Stephen James, Principal of Tax Technology and VAT for Ryan & Company. "Their delivery of an easy-to-implement and timely solution that meets the latest U.K. Reverse Charge deadline reinforces their continued commitment to excellence and to delivering the most accurate and complete VAT solution available. With other countries such as Italy and Portugal evaluating similar VAT legislation, companies should consider the flexibility and responsiveness Sabrix provides." About Sabrix Sabrix, Inc. is a proven expert in transaction tax management, enabling finance, tax, and IT professionals to achieve accurate, timely, and cost-effective compliance for sales tax, use tax, value-added tax (VAT), and industry-specific taxes and fees. The company's flagship product, the Sabrix Application Suite, empowers Global 2000 companies to manage transaction tax with consistent accuracy, control, and efficiency. The Sabrix Application Suite is an enterprise-class, centralized transaction tax management system that seamlessly connects to all financial applications requiring the determination, calculation, and recording of transaction taxes. With Sabrix, a company has a single transaction tax solution and a single system of record for transaction tax compliance, with distributed management and control for geographically dispersed tax professionals. The Sabrix Application Suite has been implemented at global enterprises across a variety of industries, including Amazon.com, BASF, Cisco, DTE Energy, IBM, QUALCOMM, Sportsman's Warehouse, and York International. The company also offers the Sabrix MTS, an outsourced transaction tax compliance service that helps finance departments eliminate the hassle, control their audit exposure, and reduce the total cost of sales tax, use tax, and VAT compliance. 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. For press inquiries: May Chang Sabrix may.chang@sabrix.com SOURCE: Sabrix