Basics Of IFTA- Part-1

Welcome back filers, it’s been a long week here at our end. How is your week treating you? Hope you are driving safe and fine on the highway. We have been receiving calls asking for more information about IFTA and that is why, this blog is dedicated to those who are new to filing taxes or preparing IFTA. Hope and trust we clear your queries. Additionally, we would like to divide the blog into two major parts for better understanding of IFTA. So stick around for a while and get a clear idea about IFTA.

What Is IFTA?

IFTA is an abbreviation standing for International Fuel Tax Agreement and the tax collection agreement is among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction.

Who Must File IFTA?

Every interstate motor carrier operating “qualified motor vehicles” between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an international fuel tax agreement (IFTA) license and decals issued by their base jurisdiction. However, if you don’t have an IFTA license, you need to file the Quarterly IFTA Return to your base jurisdiction.

Qualified motor vehicle means a motor vehicle or combination of vehicles used, designed, or maintained for the transportation of persons or property having:

  • ·         Two axles and a gross vehicle weight exceeding 26,000 pounds;
  • ·         Two axles and a registered weight exceeding 26,000 pounds;
  • ·         Three or more axles regardless of weight; or
  • ·         A combination weight exceeding 26,000 pounds

Do note recreational vehicles are exempt from IFTA fuel tax reporting.

Base jurisdiction means the member jurisdiction where:

  • ·         Qualified motor vehicles are based for vehicle registration purposes;
  • ·         Operational control and operational records of the licensee’s qualified motor vehicles are maintained or can be made available in case of an audit; and
  • ·         Some mileage is accrued by qualified motor vehicles within the fleet travelling through that jurisdiction

What Is Required To File IFTA?

The following information is required on the IFTA quarterly tax return:

  • ·         Total miles, taxable and nontaxable, traveled by the licensee’s qualified motor vehicles in all jurisdictions, IFTA and non-IFTA, including trip permit miles;
  • ·         Total gallons of fuel consumed, taxable and nontaxable, by the licensee’s qualified motor vehicles in all jurisdictions, IFTA and non-IFTA;
  • ·         Total miles and taxable miles traveled in each member jurisdiction;
  • ·         Taxable gallons consumed in each member jurisdiction;
  • ·         Tax-paid gallons purchased in each member jurisdiction; and
  • ·         Current Tax Rates for each member jurisdiction.

So do you have any queries related to the form, which is settled behind your head, drop us an email to or simply call us @ 1-866-245-3918. Our Tax Experts would get them in place.