KPMG study reveals VAT third-largest financial outlay accounting for up to $1 billion of corporate cash flow for larger companies

SAN RAMON, CA – April 14, 2009 – Sabrix, Inc., a leading provider of transaction tax management for companies of all sizes, today announced support for the 2010 VAT changes for European Union, which include changes in the place of supply of services rules designed to standardize VAT collection based on where services are consumed. The news supports the 2008 KPMG study that shows VAT “through-put” is the third-largest financial outlay — behind sales and purchases for companies —accounting for up to $1 billion of corporate cash flow for larger corporations.

“The 2010 changes illustrate why VAT is a growing area of concern and complexity,” said Thomas A. Boniface, National Partner in Charge, Value Added Tax Practice of KPMG. “Our latest KPMG corporate and indirect tax rate study reveals that 50 percent of finance professionals view VAT compliance as their greatest risk, and yet have limited visibility into their total VAT exposure or the resources required to manage VAT.”

The latest release of the Sabrix Application Suite includes several enhancements:

• Enhanced tax determination logic supporting the 2010 VAT changes for European Union Place of Supply Rules for Services to ensure continued compliance and increased control over cash flow.
• Configurable, automated rounding rules at the document and jurisdiction level to enable tax professionals greater flexibility for calculation accuracy.
• Greater reporting performance capabilities to streamline the labor intensive returns process and improve the speed and quality of decision making.
• Additional application access capabilities for increased security.

“We’ve been proactively engaging our customers and addressing the VAT change since last February when the ECOFIN first announced the legislation,” said Pam Kostka, senior vice president corporate marketing of Sabrix. “Our latest release greatly expands compliance capabilities for our global customers and fully supports the VAT changes. Sabrix is committed to helping our customers achieve compliance with confidence, and to minimize any risk or exposure when the new legislation takes effect.”

Pricing and Availability

Sabrix Application Suite is available now. Pricing starts at $35,000 and depends on company size and complexity of transaction tax environment. For more information, visithttp://www.sabrix.com/enterprise/.

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