Tax Treatment of Sales of Motor Fuel via Mobile App: Illinois Department of Revenue’s Guidance

• The Department of Revenue issued two general information letters regarding the tax treatment of sales of motor fuel made via a mobile app.
• The company in question operated a mobile app that allowed truck drivers to purchase fuel at reduced prices from specific fueling stations.
• The Department of Revenue was asked whether the company was required to collect sales tax or motor fuel tax.
• The company claimed it was not a marketplace facilitator and not required to register for motor fuel tax collection.
• The Department of Revenue stated that it requires a complete explanation of the contractual relationship between the parties involved.
• The Department of Revenue could not address the taxpayer’s obligation to register for and remit tax without copies of the contracts with the fuel stops.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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