IFTA Decal Archives - Page 2 of 5 - Global Multiservices

The trucking industry is one of the biggest industries in the United States, and it is composed of small and medium-sized businesses.  It is also highly regulated, and motor carriers need to file IFTA Fuel Tax Return if they operate across more than one jurisdiction.

Transportation plays a vital role in trade facilitation and has become a key element in the success of the business operation. But its volatile customer demands and complex business models make it difficult to streamline its management.  According to one logistics study, cutting transportation costs top the list of challenges faced by trucking companies. Others include technological advancements and innovation without exceeding their budget.

Reports have shown that the trucking industry generated more than 60% of the nation’s entire freight bill. However, while trucking companies move billions of dollars of goods across the country each year, they face myriad challenges that can prevent their companies from meeting their full potential. Read on as Global Multi Services takes us through the challenges faced by trucking companies.

IFTA Fuel Tax Return

DAMAGED INFRASTRUCTURE

It is not news that the roads and bridges in the United States need improvement. Crumbling bridges, roads, and tunnels in the country have led to hours of traffic delays and the use of billions of gallons of fuel. Since most trucking charges are based on distance rather than time or fuel cost, these delays affect their revenue.

Poor roads and bridges also cause damage and accidents to the truck that drive on them. According to reports, 15% of the nation’s roadways are in poor condition. These contribute to over $100 billion every year in extra truck repairs and operating costs.

IFTA FUEL TAX RETURN AND OTHER REGULATIONS

The regulations given by the trucking industry are ultimately in place to make things safer. But keeping up-to-date with them and abiding by them can be challenging. For example, federal regulations require truck drivers to record fuel use and mileage covered in each jurisdiction. And trucking companies must file IFTA Fuel Tax Return Quarterly in their base state. Failure to comply and error while filing can lead to hefty fines. They also need to obtain MC Authority and other permits from the Federal Motor Carrier Safety Administration.

LACK OF DRIVER RETENTION

Another big challenge for trucking companies is the driver shortage. According to the American Trucking Association, the trucking industry is currently short approximately 30,000 to 35,000 drivers. They expect an increase to 245,000 by 2022. One of the causes of driver shortage is that long-haul truck drivers have considerably lower pay than others.

Another serious issue is that federal regulations require drivers to be at least 21 years old to have the license needed for this line of work. These leave a three-year gap between high school graduation that draws potential drivers away into other industries.

ONBOARD TRUCK TECHNOLOGIES

The rapid advancement in technology has created many challenges for trucking companies to stay up-to-date with upcoming equipment. Though the latest technologies are attractive, their implementation is quite challenging. Additionally, the use and costs of the Electronic Logging Device mandated by the FMCSA have caused concern for the industry.


Before IFTA, truckers operating across state lines were required to file fuel tax in every state they passed through. The process was difficult and time-consuming which made staying in compliance challenging for truckers. It was obvious truckers need a faster and more efficient way to streamline the collection of fuel tax. This led to the establishment of the International Fuel Tax Agreement [IFTA]. Read on as Global Multi Services explain IFTA and its importance.

What Is IFTA?

The International Fuel Tax Agreement is an agreement for collecting and distributing fuel tax paid by interstate motor carriers. This agreement is made between the Province of Canada and the states in the US excluding Alaska, Hawaii, and the District of Columbia.

Under IFTA, motor carriers receive IFTA Permit and file a single Quarterly IFTA Fuel Tax Report in their base state. This information helps determine the fuel tax of each member state which is then paid by motor carriers to the base state. The fuel tax is then calculated based on miles covered by truckers in each state and redistributed to the member state.

International Fuel Tax Agreement

Importance Of IFTA

Improves Efficiency And Accountability

All motor carriers and truck drivers under IFTA must meet specific qualifications. They are required to obtain their IFTA Permit and IFTA Decals annually and submit their Quarterly IFTA Fuel Tax Report to their base state. This ensures all taxes are paid on time and in a proper manner. IFTA also imposes fines and penalties for motor carrier and truck driver’s late reporting or payment. This helps everyone to be accountable, efficient and reduces error.

Reduces Paperwork

Research has shown that 15% of truck accidents are caused by driver’s fatigue and drowsiness. One of the things that contributed to this is the high volume of paperwork motor carrier drivers need to submit daily. Many truck drivers spend hours filing all kinds of forms and report instead of resting after a long trip. The establishment of IFTA has reduced the stress driver face with paperwork. Thus improving highway safety and reducing accidents.

How To Register For IFTA

IFTA registering is one of the most important processes to operate as a motor carrier legally in the US. All trucking company that requires an IFTA license needs to apply in their base state. The license application can be filled online and issued by the Department of Transportation for your state or other verified agencies. IFTA Permit requirements include USDOT Number, Federal Business Number, Registered Business Name, and Mailing Address.

After submitting your application, it will be processed and an official IFTA decal and IFTA license for the current year will be issued to you by the IFTA authority in your state. IFTA Permit expires every year therefore, you must register to obtain a new permit before the third month of the following year. Failure to do so can attract hefty penalties that can affect your trucking business.

Filing IFTA Fuel Tax Returns

IFTA Fuel Tax Return is filed to the motor carrier base state at the end of the fiscal quarter. The tax return shows the list of miles traveled by the motor carrier in all member states and gallons of fuel purchased there.


Many years ago before the introduction of the IFTA Permit and license to the US, motor carrier drivers were required to purchase fuel permits from each state they travel across. This is often stressful, time-consuming, and causes delay. To improve the trucking industry, officials from some states came together to establish the IFTA program in the 1980s.

The International Fuel Agreement is a joint agreement between 48 states in the US and 10 provinces in Canada that leads to using a single permit. This way the motor carrier IFTA Quarterly Fuel Tax Return will be assessed by one authority which later distributes it to the member states.

IFTA Permit

How IFTA Operates

The agreement ensures all member states are properly compensated for the use of their road by motor carriers. With the IFTA program, motor carriers only need to return the fuel used in each member state to their base state. The state then collects the taxes, processes IFTA Fuel Tax Return, and distributes the fund to the other states. The base state is also responsible for issuing an IFTA decal, which comes with an IFTA license as proof of IFTA registration.

How To Get IFTA Decal

Before you obtain the IFTA decal, you will need to complete your IFTA registration in your base state or province. It should be the state or province your trucking company is registered in or where your company’s records are kept. After registering with IFTA, you will be issued a license and two IFTA decals to be placed on both sides of your truck. IFTA decal expires at the end of every year, therefore, you need to always renewal to stay compliant.

How To Obtain Temporary IFTA Permit

To stay in business, trucking companies must obtain legal documents and also adhere to the rules and regulations that govern the road. This is why it is important for qualified motor carriers that do not participate in IFTA must obtain a Temporary IFTA Permit to travel across the IFTA member state.

Also, any motor carrier who operates one or more qualified motor vehicles in other IFTA member state other than their base state must apply for must be obtained Temporary IFTA Permit to travel through the member state according to the regulations of each member jurisdiction.

The cost of a Temporary IFTA permit varies from state to state and its validity time ranging from 72 hours to 30 days. Paying for a temporary permit is much cheaper when compared to paying a huge penalty fee for illegal road use. Our job at Global Multi Services is to help you get your permit as fast as possible so you can be on your way.

How To Calculate IFTA Fuel Tax Report

Follow the following steps to calculate your IFTA Fuel Tax Report

  • Track miles travel in each member state or province
  • Record and calculate the total gallons of fuel purchase in each member state or province.
  • Record and calculate fuel consumed in each member state or province
  • Record and calculate the fuel tax of each state or province.
  • Add everything together.

How We Help At Global Multi Services

Global Multi Services is a company with many years of experience when it comes to filing IFTA Quarterly Fuel Tax Return, IFTA Fuel Tax Return, and  IFTA Permit. Our team is ready to explain the IFTA Program to you to get knowledge about how it works. Our system of applying for a Temporary IFTA Permit and IFTA decal is very fast and affordable. Contact us today to get the best services you deserve.