IFTA Fuel Tax Returns Archives - Global Multiservices

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.


IFTA, the abbreviated form of the International Fuel Tax Agreement, is well known to almost everyone who travels commercially on the roads of the United States. Though it has been established for the sake of commercial truck drivers, traveling interstate and across borders with Canada, many people are unknown to the concepts of the International Fuel Tax Agreement and its working. This blog is dedicated to telling you all the essential facts about IFTA Taxes, and how they charge fuel tax, plus I will also tell you how you could use the services of Global Multi Services to get your IFTA Permit and IFTA filing.

IFTA Taxes

What is IFTA

The International Fuel Tax Agreement was signed in the year 1996 between the forty-eight states of the United States and the provinces of Canada. Before 1996, IFTA was known and operating in just a few states of the US. Before the introduction of IFTA, the truckers had to go through a lot of hassle and nuisance of filing fuel taxes in each state that traveled through, and each state had its tax rates too. So it became very fiendish for truckers. Therefore, although it was introduced in 1983, the IFTA was signed by almost all states of the United States, except the two, and provinces of Canada, by the year 1996.

Who are eligible to sign it

The following categories of vehicles are entitled to get an IFTA Permit and file the IFTA Taxes:

  • Those vehicles that travel interstate for commercial purposes and have a gross vehicle weight of at least 26,000 pounds and two axles installed in the vehicle.
  • Those vehicles that travel interstate for commercial purposes and have three or more than three axles installed in them.
  •  And, Those vehicles that travel interstate for commercial purposes and have a gross vehicle weight of more than 26,000 pounds.

How IFTA is reported

The IFTA Filing is done quarterly, and the due date to file taxes is usually the last date of the month following the last month of the quarter.

To file the IFTA taxes you have to keep a thorough data of your travel details such as which states you traveled in, how much distance you traveled in those states, how much fuel your vehicle consumed in the traveled states, and what mileage your vehicle while traveling through those states. And the basis of all these data, one could collect their taxes. But a boon here is that, for which the IFTA was specifically introduced, you just have to pay the taxes according to the tax rates of your base jurisdiction and not according to the tax rates of the states that you traveled through.

How Global Multi Services could help

Though the Government of the United States and Canada has done a tremendous job by introducing the IFTA System, still it did not make the life of truckers as easy as expected. To file the IFTA Taxes, you still have to keep comprehensive data of your travel details and do complex calculations to check how much tax you have to pay, at the end of each quarter. That is when Global Multi Services comes in, our skilled and experienced employees keep all the details of your travel and fuel consumption, and then at the end of each quarter, they meticulously calculate your IFTA Taxes. They could even do your IFTA Filing for you.