J. J. Keller® Compliance Network Logo
Start Customizing Your Profile for Free!
Update to Professional Trial!

Experience Everything Compliance Network Has to Offer

Already have an account?
Thank you for investing in EnvironmentalHazmat related content. Click 'UPGRADE' to continue.
Enjoy your limited-time access to the Compliance Network Professional Trial!
A confirmation welcome email has been sent to your email address from ComplianceNetwork@t.jjkellercompliancenetwork.com. Please check your spam/junk folder if you can't find it in your inbox.
Thank you for your interest in EnvironmentalHazmat related content.
You've reached your limit of free access, if you'd like more info, please contact us at 800-327-6868.

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.

Don’t underestimate a receipt’s importance

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.

Manage receipts more easily

How can you keep more money in your bank? The following tips can help you manage your fuel receipts:

  • Consider a fuel card. A fuel card can be an excellent method for tracking fuel purchases. Fuel card vendors will compile all fuel purchase data on one handy report that is, in effect, your fuel receipts for the entire quarter. If you end up using a fuel card, try to assign the fuel cards by vehicle rather than driver. This helps ensure each fuel purchase is tied to the appropriate vehicle. If you must assign by driver, ensure drivers are diligent about ensuring fuel records include the correct vehicle identification information.
  • Don’t procrastinate. Compile your fuel and distance data on a regular basis and do not wait until the end of the quarter to back-track to find missing fuel receipts. Remember that insignificant piece of paper which is not given much thought? The longer you wait to compile your receipts, the more likely the receipt will be gone.
  • Use technology. Have drivers take photos of or scan their fuel receipts on their smartphones and email/text them to your office on a regular basis.

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.