New Taxware Product 'First To Incorporate VAT Rules Of Next EU Intake'

by Ulrika Lomas, Tax-News.com, Brussels

29 July 2004

Taxware, a leading provider of tax calculation and compliance tools, says it has become the first firm to unveil a new product accommodating the VAT rules and regulations of the three countries currently seeking accession to the European Union, namely Bulgaria, Romania and Turkey.

“By implementing changes such as these in advance of their effective dates, Taxware gives its clients confidence that their transaction tax systems will remain compliant with local and international tax calculation, reporting and auditing requirements,” stated Jon Abolins, senior vice president of operations for Taxware, a subsidiary of First Data Corp.

While rates of VAT in the three countries are similar, levied between 18% and 20%, their treatment of particular categories of goods and services differs widely. Should their negotiations to join the EU succeed, these three countries will need to ensure that their VAT systems comply with EU requirements, which may result in considerable changes to rates, regulations and reporting practices.

“Tax rates may seem relatively easy to monitor, but tracking specially taxed goods and services and cross-border transactions requires more resources than most corporate tax and treasury departments have available,” explained Mr Abolins.

‘Taxware Enterprise’, launched in June, determines VAT and other consumption taxes in more than 170 countries worldwide, keeping up to date with any changes in tax rules that may occur in these jurisdictions.

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