Avalara Returns Excise for Enterprise
Midstream and downstream energy companies often need to collect sales and use tax in addition to motor fuel excise, environmental, and alternative fuel taxes. Tax rules can be complex and vary by jurisdiction, but many states require sales and use tax (SUT) collection on fuel sales, while others require SUT only be charged when there is an exemption from excise tax. Some fuel suppliers also sell non-fuel products subject to SUT.
Since solutions for SUT filing don’t support excise returns, tax managers often use a mix of manual, spreadsheet-based processes or use two different tax automation solutions for excise and sales tax returns. This complexity typically results in complicated filing processes, duplicated work, and tax errors, which leads to higher costs and increased audit risk. Learn how to automate the process with one platform.