Due to the rapid worldwide growth in the number of vehicles on the road, traffic problems are bound to exist. Hence, the implementation of Intelligent Transportation Systems (ITS) to obtain traffic information from roads is becoming an urgent necessity. This paper tackles the problem of designing a Vehicle Location System (VLS) based on Radio Frequency Identification (RFID). The proposed system consists of passive RFID tags on vehicles, RFID readers, wireless Ethernet communication with a Central Computer System (CCS) and commanding software. The gathered information will be filtered and stored in a suitable form to be easily used in many useful applications. Such applications include, but not limited to, location of vehicles in intersections at any time, path and orientation of vehicle in intersections, the numbers and the IDs of vehicles passing each intersection at any time, traffic information statistics, estimate the traffic congestion situation in roads, etc.