What is the difference between net billing and tax reclamation and is one better than the other?
With net billing, eligible fuel taxes are extracted from the total purchase amount at the time the sale is posted. In contrast, with tax reclamation fuel tax amounts are not netted from the gross fuel total amount at time of posting. Instead, tax refund claims are submitted to different federal, state, and municipal tax jurisdictions for these tax-exempt fuel transactions, and refund checks are delivered directly to the tax-exempt cardholder clients. Since not all states/pump locations allow for netting of taxes at the pump, programs that use this method are required to have an alternate tax reclamation process. Visa Fleet offers its tax-exempt cardholder clients a single and comprehensive tax reclamation process. Visa Fleet tax reclamation recoups more eligible tax monies to cardholder clients than tax netting.
