Purpose of IFTA

IFTA is a tax collection agreement by and among the 48 contiguous

States and the 10 Canadian Provinces bordering the US. IFTA is a quarterly tax

on qualified highway motor vehicles that operate in at least 2 out of the 58 total

jurisdictions. IFTA allows you to travel in all participating member jurisdictions

with a single fuel tax license. Each vehicle has a base jurisdiction, which is the

state or province in which the vehicle is registered. Fuel tax must be filed with

each jurisdiction each quarter.

The official purpose of IFTA is ‘to promote and encourage the fullest

and most efficient possible use of the highway system by making uniform the

administration of motor fuels use taxation laws with respect to qualified

member vehicles operated in multiple member jurisdictions.’ When IFTA is

filed with the appropriate jurisdiction, the Fuel Tax Report is then used to

determine the tax amount due as well as the refund due. It is also used to

redistribute taxes from collecting jurisdictions to jurisdictions that it is due. One

of the reasons for the Fuel Tax is to ensure that a vehicle pays taxes to all

deserving jurisdictions. By filing an IFTA quarterly return companies undergo

fewer audits which are generally performed by tax examiners from their

representing jurisdictions.

What is required to file IFTA?

To file an IFTA return you will need the total miles, taxable and non taxable,

travelled by the IFTA licensee’s qualified motor vehicle(s) in all

jurisdictions/states, regardless if they participate in IFTA, which includes all trip

permit miles. You will also need the total gallons, or litres, of fuel consumed,

taxable and non taxable, by the licensee’s qualified motor vehicles in all

jurisdictions, IFTA and non-IFTA. Make sure to have the total miles and total

taxable miles travelled in each member jurisdiction. You will need to know the

total taxable gallons consumed in each member jurisdiction. You will need the

tax-paid gallons/litres that are purchased in each member jurisdiction and the

current tax rates for each member jurisdiction. These are only requirements of

what you need to file an IFTA return, not to file an IFTA return with

ExpressIFTA. When filing with ExpressIFTA all you need to do is enter your

base jurisdiction, miles travelled in each state for your trip log and we

accurately calculate the taxes due.

The total miles, taxable and non taxable, travelled by the IFTA licensee’s

qualified motor vehicle(s) in all jurisdictions/states, regardless if they participate

in IFTA, which includes all trip permit miles.