Challenges

Energy trades have tax implications. Each jurisdiction is unique in the application, complexity, and financial impact of those taxes. Unfortunately, many trades simply miss the appropriate tax liability. If taxes are included, miscalculation is common due to outdated rates, rules, or third-party license information.

Large organizations face an additional challenge in that they typically have multiple internal systems, such as energy trading and risk management (ETRM) or accounting software, that calculate taxes independently based on their own sets of tax information. This creates a situation in which the same taxes are calculated differently. Plus, internal personnel must monitor tax changes and keep multiple systems up to date - a laborious and error prone process.

When trades do not include properly accounted for taxes, organizations face unnecessary audit exposure. Addiitonally, it can take as many as nine deals to recoup the margin lost on a single deal where the tax liability was calculated incorrectly. Tax implications can literally change the shape of a trade.

FuelQuest provides Zytax Determination to trading organizations that calculates jurisdictional tax liability as well as Zytax Compliance for automated tax return creation and filing. Zytax software includes automatic updates of tax rates, rules, and forms so taxes are calculated and filed correctly.

FuelQuest trading customers include Holly Corporation, Mercuria Energy Group, Merrill Lynch, Nobel Americas Corporation, Vitol Group, and more. With Zytax, trading organizations get:

• Reduced audit risk and tax liabilities
• A single application for motor fuels excise, sales and use, VAT, GST, PST, environmental, and other tax types
• Support for all major products including motor fuels, refined, power, LNG, and more
• Improved decision making via what-if scenario modeling
• Increased accuracy and reliability via process streamlining.

Zytax automates tax calculation and compliance so that traders can focus on deals without having to worry whether an unforeseen tax issue will bite them later.

What Is Zytax Determination?

Zytax Determination integrates with existing back-office systems to automate the process of identifying and calculating indirect taxes on petroleum transactions.  It's a unique, out-of-the-box solution for petroleum suppliers, distributors, or traders, with comprehensive support for excise, environmental, and sales & use taxes, including: Federal, state, city, and county taxes. To learn more, please visit our Zytax Determination page.

What Is Zytax Compliance?

Zytax Compliance is a software product that automates the import, processing, and filing of indirect taxes to local, county, state, and federal jurisdictions across the entire U.S. and internationally. Compliance reduces the complexity of the tax filing process generating signature-ready tax returns for distributors, retailers, suppliers, fleets, and other filers. Compliance lowers operational costs and improves filing accuracy and reliability minimizing business and compliance risks. Zytax Compliance is available in a SaaS version and includes automatic feeds of rules, rates, and form changes across all jurisdictions. To learn more, please visit our Zytax Compliance page.