Fuel suppliers and distributors are legally required to track, collect, and submit indirect taxes on each fuel transaction they conduct. To manage this requirement, these businesses must identify which taxes are due based on a complex framework of overlapping tax jurisdictions, product-based rules, and rates based on a variety of factors like blend percentages, licenses and exemptions. Whether operating above, at, or below the terminal rack, an equally complex set of custom rules and data must be developed within your SAP instance to calculate the taxes on each transaction.
Avalara AvaTax Excise for SAP integrates with SAP Oil and Gas pricing processes to automate the identification and calculation of indirect taxes on fuel transactions. It’s a unique, plug and play solution for fuel suppliers, distributors, and traders, that provides comprehensive support for both volumetric and value-based taxes, including: Excise, environmental, VAT and sales and use taxes.
The solution, which is compatible with both SAP ECC 6.0 and SAP S/4 HANA, ensures ongoing tax compliance through automated tax calculations via AvaTax Excise. The Avalara-Certified SAP Connector is designed to easily map SAP fields to the tax values from AvaTax Excise, enabling the accurate determination of indirect taxes on your transactions. By leveraging this pre-built connector and fuel tax calculation solution, Tax and IT departments reduce both start-up and on-going costs, cut implementation time, and streamline procure-to-pay operations.