Sabrix Ltd. is First Tax Automation Vendor to Respond to the 1 June U.K. Reverse Charge VAT Law
Sabrix Software Helps Tax Professionals Grapple with Ever Changing VAT Landscape
London, England – 31 May, 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 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.
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Kurt Foeller
Foeller Communications
sabrix@foellercom.com