Tax Standards for Solution Providers

1. WHERE TAXATION MEETS INNOVATON Tax Standards for Solution Providers January | 30 | 2004 Presented by: Michael Roytman Enterprise e-Business Architect michael.roytman@vertexinc.com

2. Vertex’s Mission To enable the emergence of a global tax network and improve the performance of tax administration processes for the benefit of our customers and worldwide enterprise.

3. Vertex Background • Privately held company 700+ employees • Global coverage • Dir. Of Gov’t. Affairs in Washington DC • 10,000+ customers • Recognized leader in tax compliance industry by: • Wall Street Journal • MSI, an Independent Research Firm • Strategic Partner Support Organization • SCP certified support

4. Industry Leader The world’s largest financial application software manufacturers and consulting firms use our products

5. Sales, VAT and Use Tax Tax Calculation System Taxability Mapping Tool Exemption Certificate Manager Returns Preparation Tax Analysis and Planning Payroll Tax Quantum for PTAX PayrollTax Income Tax Vantage Tax Fixed Asset Manager Federal and State Planning Manager Tax Calendar Telecommunications Tax CommTax 21 Reference Solutions Leasing Rates Online Sales Tax RateLocator VAT Rates Online Vertex Product Solutions

6. XML at Vertex Today

7. Evolution of Tax Information Exchange

8. The Ideal World of XML Standards

9. Tax Process: Macro View Business/Taxpayer Driven Tax Law Tax Compliance Preparation Legislative Activity Tax Administration Process Tax Programming & Calculation Tax Audit Tax Reporting & Filing Tax Processing Tax Remittance Government/Agency Driven

10. Tax Standards Adoption

11. TOMORROW (rigorous and formal description) Business Analysis W H Y BUSINESS MODELS Requirements Analysis TRANS-ACTIONS Logical Analysis W H A T Message Design COMPONENTS Purchase Order Sender Recipient ________ ________ ________ ________ ________ ________ Position __ ________ ________ __ ________ ________ __ ________ ________ __ ________ ________ __ ________ ________ Account Summary ________ ______ __ ________ ______ __ ________ ______ __ Purchase Order Sender Recipient ________ ________ ________ ________ ________ ________ Position __ ________ ________ __ ________ ________ __ ________ ________ __ ________ ________ __ ________ ________ Account Summary ________ ______ __ ________ ______ __ ________ ______ __ Validation rules Example Information flow BusinessDocuments Technical Design DOCUMENTS H O W Usage guidelines Format specs Technical Implementation Usage rules Field specs XML CODE Scope <XML> Standards Development Process TODAY (informal description)

12. Standards Interoperability

13. XML Hype Cycle

14. Questions and Answers

15. WHERE TAXATION MEETS INNOVATON Tax Standards for Solution Providers January | 30 | 2004 Presented by: Michael Roytman Enterprise e-Business Architect michael.roytman@vertexinc.com