NetSuite Cloud Computing Software Automatically Adjusts for Upcoming VAT Rate Change; No Complex Software to Upgrade and Test
LONDON—17 December 2009—NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today announced that NetSuite customers doing business in the UK will enjoy full business systems compliance with new changes in the value-added tax (VAT) rate without having to lift a finger. NetSuite's cloud computing model and the flexible, powerful NetSuite Tax Engine inside NetSuite's financial/accounting software ensure that NetSuite customers in the UK immediately benefit from this update. While companies using stone-age, on-premise products will be huddling around the warmth of their servers praying the patches they have to install to address the VAT change actually work, NetSuite customers will be worrying about which party to attend on New Year's Eve. For more information about the plan, please visit: www.netsuite.com.hk/vat-rate.
The UK's Chancellor of the Exchequer Alistair Darling announced the return to the 17.5% VAT rate in his pre-Budget report on 9th December. The move means that businesses face a challenge to adjust their accounting software and Ecommerce systems timely and accurately in order to be compliant. Thanks to NetSuite's highly flexible and customisable cloud-based business management software, UK companies can respond rapidly to maintain the integrity of their VAT and accounting records. The ability of on-demand business systems such as NetSuite to respond quickly to changing business conditions in near real-time and then communicate a single, best-practice message directly to customers via the on-demand platform demonstrates another advantage that cloud-based solutions have over previous generation, on-premise software.
The decision to temporarily reduce the VAT rate from 17.5% to 15% was made last year as part of government's economic stimulus package. The change back to 17.5% is due to come into effect on 1st January 2010, leaving little time for companies to prepare themselves for the change. NetSuite has developed a SuiteBundle that automatically updates customers' tax codes lists and items, as well as open sales and purchase orders that they may have as of 31st December 2009. Customers can apply the bundle at any time and then the system will update itself automatically on 1st January.
"The change in the UK VAT rate presents a challenge to businesses to ensure compliance, especially during the busy Christmas period," said Steve Sydes, Managing Director of EMEA for NetSuite. "The NetSuite tax engine was designed to allow such changes to be made quickly and at the appropriate time. Thanks to the SuiteCloud platform, customers can prepare now and relax for the remainder of the festive season."
NetSuite has taken a multi-channel approach to providing its customers with information on the change and on supporting them through the process every step of the way. This includes a dedicated micro-site on the NetSuite Web site, postings within the NetSuite user group online forum, and email communications. NetSuite Customer Support is also staffed with accounting compliance specialists to address customers' questions.
For more information about NetSuite Inc., please visit www.netsuite.com.hk.
NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.