IFTA
What is IFTA?
IFTA – International Fuel Tax Agreement is a multi-jurisdictional contractual single system among the 48 adjoining U.S. states & 10 Canadian provinces excluding Alaska, Hawaii, and Canadian territories to collect fuel tax from commercial motor vehicles.
To obtain the IFTA license, you need to go to your based (State where your business is) jurisdiction IFTA department. An operating carrier will get an IFTA license and two decals that go on your vehicle.
Once you have your IFTA license, you begin filing quarterly taxes 4 times in April, July, October, and January through your based jurisdiction.
| Filing Order by Tax | Time | Last Date |
|---|---|---|
|
1 Quarter |
Jan To March |
April 30 |
|
2 Quarter |
April To June |
July 31 |
|
3 Quarter |
July To Sept |
October 31 |
|
4 Quarter |
Oct To Dec |
January 31 |
IFTA Advantages
- Yearly fuel tax license allowing commercial carriers to travel in all IFTA jurisdictions.
- A single quarterly tax return filed with the base jurisdiction covering a carrier’s operations in all IFTA jurisdictions.
- Benefit of one comprehensive audit done by base jurisdiction on behalf of all affected jurisdictions members. Thus, carrier get reveals from filing numerous individual audits done by every jurisdiction.
- Carrier operator musts consider applying license vehicle IRP – International Registration Plan, if operates an IFTA commercial vehicle inter-jurisdictionally.
- IRP issues a set of license plates called as prorate plates and can card for each commercial licesned commercial vehicle.
- Part amount of the paid license fee is credited to each jurisdiction in which carrier vehicle is expected to travel.
- If carrier operator base jurisdiction is BC, that carrier will register with the Insurance Corporation of British Columbia (ICBC).
Who can Apply for IFTA?
IFTA license is valid for one year only and expires on 31st December every year. Every carrier will get 2 decals per IFTA licensed vehicle to display on both sides, front and back of the truck. IFTA is mandatory for the motor vehicle is used inter-provincially or internationally for the commercial commencement of persons and property that Has two axles and a registered gross vehicle weight exceeds over 11500+ kilograms or over 26000 pounds or Any gross weight with three or more axles or, It works with a combination (carrier with trailer) and weighs over 26000 pounds. On the contrary, IFTA commercial vehicle is not mandatory for:
- A two-axle power unit used with a trailer has a combined GVW or RGVW of less than 11.797 kilograms.
- A motor home (recreational vehicle)