IFTA is the International Fuel Tax Agreement between the lower 48 states of the United States and the Canadian provinces. It automates fuel tax reporting for multi-jurisdictional commercial vehicles. IFTA requires fleet owners to pay their fuel taxes quarterly to their state or province of residence, and it passes the taxes along to jurisdictions according to the number of miles driven. This also ensures that the right tax allocation goes to the locations of fuel use.
An IFTA-qualified vehicle must be 26,000 or more pounds and have 3 or more axles. Fleets will have to keep track of fuel purchased, miles driven in each jurisdiction, and other details. All this information is combined into an IFTA report submitted to the state or province of residence.
Compliance with IFTA requirements is important for trucking firms so they are not penalized. TruckX’s fleet management solution makes this easy. With automated IFTA reporting, GPS tracking, mileage tracking, and real-time fuel analytics, TruckX eliminates day-to-day activity and administrative work. This is not only a way to make compliance but also to save time and money.
Related Questions
- Is IFTA a good certification?
- Do local trucks need IFTA?
- What is the Best ELD to Track IFTA?
