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What are your thoughts on fuel receipts?
Most people think a fuel receipt is just a small slip of paper that’s required as part of your records for compliance with the International Fuel Tax Agreement (IFTA). While technically that may be true, that small slip of paper holds so much value. Fuel receipts are money in your bank.
Out on the road when your drivers purchase fuel at the pumps, taxes are paid into the state or province in which the fuel was purchased. The fuel receipt is proof that fuel was purchased and that taxes were paid at the time of purchase. You can obtain tax-paid fuel credit for those fuel purchases on your IFTA returns.
This is why it’s so important to ensure drivers retain all fuel receipts and submit them to you on a regular basis. If a fuel receipt is lost, it’s like taking money out of your bank. Why? Well, when a fuel receipt is lost, tax-paid credit cannot be claimed on the return. And, you effectively end up paying for the taxes on the fuel twice – once at the pump, and, again on the IFTA return. This can get expensive, especially if drivers lose a receipt for a fuel purchase in a state with a high fuel tax.
For example, Pennsylvania’s diesel fuel tax is currently running at a steep $0.741 per gallon. For a 100-gallon diesel fuel purchase in Pennsylvania, you’re paying nearly $75 in fuel taxes. Losing just one receipt like this each month for one year results in $900 in additional fuel taxes paid during the year.
How can you keep more money in your bank? The following tips can help you manage your fuel receipts:
Key to remember: Keeping track of fuel receipts and having internal controls in place to manage your receipts will help you keep more money in your bank.
What are your thoughts on fuel receipts?
Most people think a fuel receipt is just a small slip of paper that’s required as part of your records for compliance with the International Fuel Tax Agreement (IFTA). While technically that may be true, that small slip of paper holds so much value. Fuel receipts are money in your bank.
Out on the road when your drivers purchase fuel at the pumps, taxes are paid into the state or province in which the fuel was purchased. The fuel receipt is proof that fuel was purchased and that taxes were paid at the time of purchase. You can obtain tax-paid fuel credit for those fuel purchases on your IFTA returns.
This is why it’s so important to ensure drivers retain all fuel receipts and submit them to you on a regular basis. If a fuel receipt is lost, it’s like taking money out of your bank. Why? Well, when a fuel receipt is lost, tax-paid credit cannot be claimed on the return. And, you effectively end up paying for the taxes on the fuel twice – once at the pump, and, again on the IFTA return. This can get expensive, especially if drivers lose a receipt for a fuel purchase in a state with a high fuel tax.
For example, Pennsylvania’s diesel fuel tax is currently running at a steep $0.741 per gallon. For a 100-gallon diesel fuel purchase in Pennsylvania, you’re paying nearly $75 in fuel taxes. Losing just one receipt like this each month for one year results in $900 in additional fuel taxes paid during the year.
How can you keep more money in your bank? The following tips can help you manage your fuel receipts:
Key to remember: Keeping track of fuel receipts and having internal controls in place to manage your receipts will help you keep more money in your bank.