WHERE TAXATION MEETS INNOVATON Tax Standards for Solution Providers Presented by: Michael Roytman Enterprise e-Business Architect January | 30 | 2004

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 Vertex Product Solutions 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

6 XML at Vertex Today

7 Evolution of Tax Information Exchange

8 The Ideal World of XML Standards

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

10 Tax Standards Adoption

11 Standards Development Process TODAY (informal description) Scope Field specs Format specs Usage guidelines Usage rules Example Validation rules Information flow TOMORROW (rigorous and formal description) WHYWHY Business Analysis Requirements Analysis BUSINESS MODELS WHATWHAT Logical Analysis Message Design TRANS- ACTIONS COMPONENTS HOWHOW Technical Design Technical Implementation DOCUMENTS XML CODE Purchase Order Sender Recipient ________ Position __ ________ ________ Account Summary ________ ______ __ Business Documents Purchase Order Sender Recipient ________ Position __ ________ ________ Account Summary ________ ______ __

12 Standards Interoperability

13 XML Hype Cycle

14 Questions and Answers

WHERE TAXATION MEETS INNOVATON Tax Standards for Solution Providers Presented by: Michael Roytman Enterprise e-Business Architect January | 30 | 2004