Fuel Tax
Definition
In Chile, a tax that is levied on the first sale or import of gasoline and diesel (in Spanish, impuesto a los combustibles). The two types of fuel are taxed at different rates.
Use
Whether the tax can be deducted depends on what the fuel is used for. If it is used for vehicles that use public roads, it is nondeductible; otherwise, it is deductible.
How the System Records the Tax
When you enter a fuel purchase that is subject to nondeductible tax, the tax is automatically absorbed into the cost of the fuel: the system treats the cost of the fuel and the fuel tax as a single item. Since you cannot offset the tax against your output tax, it does not need to be recorded separately.
If the fuel tax is deductible, on the other hand, the system creates a separate line item for it (which, in the standard system, is then automatically posted to the input tax account). As the tax is recorded separately, you can then credit it against your output tax.
Integration
In order for the system to be able to distinguish between deductible and nondeductible fuel tax, they are handled using separate
condition types, process keys, and tax classes. The system generates them automatically when you create a company code using the template for Chile.To prepare a list of the fuel tax that you have paid, run the
purchase ledger report.