Tidbits About IFTA

So filers, how’re you doing? We are in the third quarter of the calendar year and this October end would be the last date for reporting IFTA to your base jurisdiction. Today, we are going to discuss IFTA in general for better understanding.

So Let’s Get Started, 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.

Why Should You Register With IFTA?

Vehicle owners whose motor carrier operates in more than one states coming under the IFTA jurisdiction, should:

  • Decide on one of the International Fuel Tax Agreement member states as their ‘base jurisdiction’
  • Acquire fuel tax license for the various qualified motor vehicles so that they get the authorization to travel within the IFTA jurisdiction.
  • Vehicle owners need to prepare and file their IFTA return every quarter, where they need to report the usage of fuel and mileage used in the IFTA state and provinces.

How to Get an IFTA License:

The motor vehicles that are operating in United States or Canadian Provinces, qualify for an IFTA license. However, there are requirements to be fulfilled to receive a qualified vehicle tag. Vehicles that are used for transporting of goods and people come under the qualified vehicle criteria but there are additional aspects attached to it such as:

  • The vehicle has at least three or additional axles
  • The vehicle has at least two axles or has been registered under the gross weight of more than 26,000 pounds
  • Vehicles that come under the registered gross weight of 11,797 kg but should meet the specific requirements

However, certain states have few exemptions for qualified motor carriers. For example, recreational vehicles (in spite of their weight or axle configuration) that are not used for business purposes are not considered as a qualified motor vehicle.

When Is IFTA Due?

IFTA or International Fuel Tax Return is applicable to be filed quarterly. The due dates are as follow:

  • ·         January to March (April 30th)
  • ·         April to June (July 31st)
  • ·         July to September (October 31st)
  • ·         October to December (January 31st)

How To Prepare IFTA Return?

Well, there are two methods commonly used by the filers and among them, preparing the IFTA return online is the most appreciated method as it is easy, simple and reliable method. You don’t have to bother about the fuel rates fixed by the states you commute in that quarter nor do you have to break your head with the calculations. All you need to do is, add in details asked by the application and there you go, you have your prepared return in your hand. Simply mail it to your base jurisdiction before the due date.

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