Automating the process of identifying and calculating tax for financial transactions involving motor fuels, petroleum products, and natural gas can be complex and difficult to maintain in-house. Avalara AvaTax Excise provides built-in support for thousands of jurisdictions in the U.S. and Canada.
Tax determinations at the transaction level
Indirect taxes are a major component of any fuel transaction. An error in tax determination can result in significant sales margin impact, hidden tax liabilities, and the potential for fines and penalties from taxing jurisdictions. Fuel suppliers, distributors, and energy traders will all benefit from increased tax determination accuracy, financial control, and transparency. Energy traders can fully understand tax implications prior to committing to a transaction, allowing for tax optimization, risk mitigation, and decreased costs.
AvaTax Excise integrates with most major back-end financial systems, automating tax calculation for a broad range of fuel transactions, including invoices, purchase orders, sales orders, or movement accruals. This significantly reduces IT maintenance costs associated with ongoing management of custom code and support of new tax regulations.
Tax accountants no longer need to track, specify, and manage implementation of new tax laws or jurisdictions. Through its Tax Update Service, AvaTax Excise delivers timely and accurate compliance with new or updated government regulations, freeing the tax department to focus on more strategic projects instead of spending time handling customer inquiries. Transaction Inquiry makes it easy to understand both calculated tax amounts and the specific rules and rates that factored into their determination. In the complex world of fuel taxation, this level of tax transparency is welcomed, with clear benefits for IT, Tax Accounting, and customers. Learn more about Avalara AvaTax.
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- Comprehensive Coverage for US state, city, and county jurisdictions; Canadian federal and provincial jurisdictions; Canadian border distance-based rates; indirect taxes for motor fuels, petroleum products, power, and LNG/CNG; excise, environmental, and sales & use taxes; and indirect taxes for above, at, or below the rack transactions
- Tax Update Service provides monthly rule and rate updates for supported jurisdictions
- Scenario-based Architecture provides flexibility to support both built-in and custom tax rules
- Exemption and Exception Certificate Management accurately tracks business partner tax status
- Transaction Inquiry to find quickly both the taxes and the rules governing tax determination for a transaction
- Simulated Scenario Evaluation for testing new rules & rates or what-if analysis of proposed transactions
- Data Extraction and Reporting Tools provide fast information access and audit support
- Detailed Error Reporting makes it clear what is wrong when taxes cannot be calculated
- Easy Integration to back-office or ERP systems for fast time-to-value
- Lower IT and Tax Accounting Costs
- Lower up-front and on-going costs for software development and maintenance
- Outsourced tax law interpretation and automatic updates lower on-going compliance costs
- Tax Accuracy – Proven tax determination engine helps ensure on-going tax compliance, accuracy, and repeatability, reducing the risk of costly mistakes.
- Business Agility – Built-in flexibility and out-of-the-box support for businesses requiring new transaction types, products, or jurisdictions.
- Control – Tax rules, rates, and data can be maintained by tax analysts. No code modifications or IT involvement is required to handle tax changes.
- Transparency – It’s fast and easy to understand exactly why taxes are what they are, reducing the need for IT involvement to answer tax questions.