SVP, Corporate Communications
Leading Cloud ERP Suite Automates UK’s Latest VAT Rate Change; No Manual Updates or Complex Software to Upgrade and Test
UK Customers Applaud NetSuite’s 'While We Sleep' Approach to Easing Compliance Challenges
LONDON and SAN MATEO, Calif.—November 30, 2010—NetSuite Inc. (NYSE: N), the industry’s leading provider of cloud-based financials / ERP software suites, today announced that NetSuite customers doing business in the UK will once again continue to enjoy full business systems compliance with the upcoming 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 antiquated, on-premise products will be installing patches, mulling over extensive checklists and manually updating their accounting records, NetSuite customers will be enjoying the season to be jolly with their families and friends. For more information about the plan, please visit: www.netsuite.co.uk/vat-rate.
Following the Chancellor’s Emergency Budget, UK businesses will be experiencing business continuity challenges for the third time in a little over two years as the standard rate of VAT is increased to 20 percent, effective on 4th January 2011. As in previous years, these changes mean that businesses are challenged in terms of adjusting their accounting software and Ecommerce systems timely and accurately in order to be compliant. This is particularly important because any under-charging of VAT can directly impact the bottom-line as the business itself will be deemed liable for any shortfall. 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 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.
As of December 17th, new tax codes will automatically be available in NetSuite’s customers' accounts and customers will be able to set the system to automatically update any open sales and purchase orders they may have as of 3rd January 2011. Just as with the rate change last year, the NetSuite application will guide customers through the process and allow them to select the precise time to make the transition to the new VAT rate; something that is particularly important for eCommerce and other companies doing business around the clock.
"This latest change in the UK VAT rate, once again during one of the busiest times of the year, presents a particular challenge to businesses' efforts to maintain compliance," said Craig Sullivan, VP & GM, International, NetSuite. "Fortunately, we are able to utilize the benefits and flexibility of the Cloud Computing model to allow customers to prepare early, enjoy their Christmas and New Year celebrations to the fullest and be refreshed and ready to face new challenges and thrive in 2011."
NetSuite takes 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. As in previous years, this includes a dedicated micro-site accessible from 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 provide guidance and address customers' questions.
"NetSuite has been delivering a powerful, seamless Ecommerce platform to our business for seven years now, so we are not at all worried about the forthcoming VAT change. Having gone through previous VAT changes with NetSuite we found the whole process to be child’s play," said Tim James-Parker, Partner of Suffolk-based retailer and distributor Justoffbase (www.justoffbase.co.uk). "Thanks to NetSuite, we spend our time enhancing value for customers and increasing our marketing effectiveness, rather than the overhead of these frustrating changes."
"The ease of compliance with HMRC VAT rate changes allows us to focus on our business and clients rather than non-productive statutory matters. NetSuite once again has applied the principles of simplicity to a complex issue without creating changes in workflow or extra work for our core finance team. We literally were able to set it up and have it taken care of while we slept," said James Pegum, CEO of Richmond, Surrey, UK-based Parrimark Technology, whose global finance team is based in Sydney, Australia.
For more information about NetSuite Inc., please visit www.netsuite.com.au.
NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.