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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