NetSuite Customers Made VAT Compliant While They Sleep

By Netsuite Inc., PRNE
Wednesday, December 16, 2009

NetSuite Cloud Computing Software Automatically Adjusts for Upcoming VAT Rate Change; No Complex Software to Upgrade and Test

LONDON, December 17 - 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

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
, 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

NOTE: NetSuite and the NetSuite logo are registered service marks of
NetSuite Inc.


Mei Li of NetSuite Inc., +1-650-627-1063, meili at; or Patrick Yiu of Brands2Life, +44-207-592-1200, netsuite at

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