A well-known agreement between 48 contiguous United States and 10 Canadian provinces, the IFTA aims to simplify the process of reporting the fuel use taxes by interstate carriers.
The agreement requires the truckers to file a fuel use tax return with their base jurisdiction every quarter. Factors that are taken into consideration when calculating IFTA fuel tax for any jurisdiction include miles traveled, fuel purchased, and taxes/credits due.
It is the responsibility of the base jurisdiction to collect and distribute funds to each jurisdiction involved.
Quarterly IFTA taxes can be filed online using various IFTA reporting software and/or electronic services. Some States may require you to file paper IFTA reports.
IFTA miles, also known as IFTA miles, are the miles covered by a qualifying vehicle per jurisdiction. IFTA miles cannot be greater than the total miles.
You will need a IFTA license under the following conditions:
You can obtain an IFTA permit by applying in the State where you are based. The application forms can be found online and are administered by the State Department of Transportation.
Getting an IFTA sticker is a three-step process: