Microsoft Advises Businesses to Ensure VAT 2010 Compliance

Changes to EU tax legislation highlight need for businesses to have IT systems that can adapt without disrupting their core business.

PARIS, December 16 - The Microsoft Business Solutions group is advising customers to be aware
of changes to European Union (EU) tax law that will come into effect Jan. 1,
2010.

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Microsoft Corp. has released updates to existing functionality to enable
Microsoft Dynamics ERP users to include services in the European Commission
(EC) Sales List report. This report previously had to include only the sales
of goods to companies in other EU countries. With the upcoming changes to EU
tax law, services need to be included in the report. In addition, the layout
of the paper report and the definition of the electronic file are different
in each of the 27 EU countries. Companies that supply services across borders
and have not yet redefined their financial and business management processes
and trained employees to deal with the upcoming changes are urged to move
quickly to comply with them.

By installing the VAT 2010 updates, customers on the Microsoft Business
Ready Enhancement Plan can comply quickly and easily with the changes in
regulations. All customers on an enhancement plan and a supported version of
Microsoft Dynamics ERP are entitled to receive these Microsoft software
updates. These VAT 2010 changes highlight the ongoing need for all businesses
to be able to adapt quickly to regulatory changes.

Microsoft Dynamics helps its customers with regulatory compliance by
monitoring the local legal requirements in the markets it serves and making
the necessary changes within the software itself. The VAT 2010 updates are a
good example of how Microsoft Dynamics solutions can help ensure that
business processes can transition smoothly to a whole host of new
legislation.

Microsoft has released updates to specific versions of the Microsoft
Dynamics ERP applications (Microsoft Dynamics AX, Microsoft Dynamics GP and
Microsoft Dynamics NAV) that support VAT 2010 within the core application and
encompass the specific requirements in each country. Further releases will
become available as subsequent announcements are made by the EU member states
that have not yet specified local details.

"It's important that our customers and partners have the tools they need
to help ensure compliance with basic legislation in whichever region they
operate. By making it part of the core functionality of our system, it is
quick and easy to update," said Crispin Read, general manager, Microsoft
Dynamics ERP. "For customers on a Business Ready Enhancement Plan, this
should be simple. Those who are not, and have not yet taken action, shouldn't
be complacent about making these changes."

About Microsoft Dynamics

Microsoft Dynamics is a line of easy-to-use, integrated and adaptable ERP
and CRM applications that enable business decision-makers to quickly respond
to market shifts, take advantage of new trends, increase their competitive
edge and drive business success. Microsoft Dynamics solutions are delivered
through a world-class network of partners who provide specialized services
and additional innovation to help customers excel in their industry.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realize
their full potential.

Charlie Meredith-Hardy of Weber Shandwick, +44-207-067-0500, dynamics at webershandwick.com, or Rapid Response Team, Waggener Edstrom Worldwide, +1-503-443-7070, rrt at waggeneredstrom.com, both for Microsoft Corp. / If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at www.microsoft.com/presspass/contactpr.mspx.