Basda head calls for euro tax law change

Basda chief executive, Dennis Keeling, is standing up for software developers at an emergency meeting with UK Customs and Excise later this month. He wants laws changed so that companies can submit their VAT calculations in euros and avoid developing dual currency systems.

Under existing laws, UK businesses supplying to multinationals may submit their invoices in euros. But they are still forced to calculate VAT in both euros and sterling.

Keeling said on Silicon.com's politics channel last month that software developers will not have time to develop dual currency accounting systems before 1 Jan 1999, when many multinational companies start trading in the euro. "Those suppliers are going to have to take the risk," he said in the interview. "It means they are going to have to worry about the exchange rate each day."

Basda research shows that far more businesses were planning on trading in the euro than Customs is expecting. Keeling cited Rover, Siemens and ICI as cases in point. He said market pressures are forcing UK suppliers to adopt the euro - or else lose their contracts - but that Customs & Excise is holding them back.

The emergency meeting, announced today, will be held on 16 October.