As an agreement established between the 48 contiguous US states and Canadian provinces, the IFTA provides a uniformed administration of motor fuel taxation law with respect to qualified interjurisdictional motor vehicles. The IFTA core principles are a base jurisdiction, retention of sovereign authority and uniform definition of qualified motor vehicle. Under IFTA, businesses that operate heavy commercial vehicles between states are required to track all fuel expenses and distances traveled. Geotab’s software not only saves management time by removing the manual process of tracking miles by state, but it also improves accuracy.
Carriers must apply for and obtain an IFTA licence for qualified motor vehicles that travel in more than one IFTA member jurisdiction. Qualified motor vehicles are defined by the IFTA Articles Agreement as motor vehicles which are used, designed or maintained for the transportation of persons or property. Two decals must be added onto each qualified motor vehicle once the IFTA licence is obtained. These decals must be annually renewed.
Quarterly IFTA tax returns must be submitted by licenced carriers to their base jurisdiction. These tax returns include motor fuel usage, remittance of amounts due as well as distance travelled in IFTA member jurisdictions. Please contact your local compliance authority for the most up to date information on regulations and tax filing dates in your area.
Carriers who fail to submit or submit their IFTA tax returns late will be subject to penalties. Regulations vary by jurisdiction. Travelling to an IFTA jurisdiction without a permit may also result in a penalty, fine or citation depending on the regulations.