All trading companies that deal with energy products—crude oil, renewable energy, and the like—will have tax liability associated with their trades. Sometimes it’s high and sometimes it’s low, but it’s always present. And when you don’t know which rules and rates are going to apply to a provisional trade, the consequences can be costly.

Unfortunately, energy trading companies often ignore indirect taxes when making trading decisions. What they fail to recognize is that the sheer complexity of energy taxation can mean they’ll have a significant impact on trading margins when there’s a failure to factor them in.

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