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 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.

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.

Those who have started trucking or trucking business after 1996 might not get the pain and nuisance that truckers operating before 1996 used to go through. Why was that? Before 1996, IFTA was not operating in the whole of the US, but since 1996 IFTA is operating in 48 states of the US, except Alaska and Hawaii, and 10 constituencies of Canada. In this blog, I am going to tell you about the nits and grits of the IFTA, how it has made the truckers’ life easier, and how Global Multi Services is one of the most booming companies in providing all kinds of proficient trucking related services.

What is IFTA?

The IFTA, or also popular as IFTA Fuel Tax Returns, is the abbreviated form of the International Fuel Tax Agreement. This agreement was signed by the 48 States of the US and Canadian Provinces. It allowed the truckers and the fleet owners to pay their fuel taxes quarterly, and also, to pay their taxes based on the fuel charges specific to their base jurisdiction only. Otherwise, before 1996, the IFTA was established only in a few American states but each state used to charge its own fuel tax from the truckers traveling interstate, regardless of where the fuel was purchased. So, by time, this became chaotic, and very expensive too, for the truckers and fleet owners. Plus, as it was not used to be filed quarterly or annually but regularly, it also became an administrative menace for the trucking companies. Now the fuel taxes are just to be filed quarterly, and that too in your base jurisdiction which further distributes it to the states that you maneuvered from in that quarter.

Who are Eligible to get an IFTA Permit

Well, not everyone is blessed with the boon of getting an IFTA Permit as the IFTA has specified some vehicle requirements to get an IFTA Permit and IFTA Decals. The vehicles should lie under one of the following categories to get an IFTA permit:

  • The vehicle should at least have two axles with a maximum weight of 26,000 or 11,797 Kilograms.
  • The vehicles should at least have three or more axles.
  • And at last, those vehicles which have a gross vehicle weight of more than 26,000 lbs or 11,797 kilograms are eligible to get the IFTA Permit.

If your vehicle falls under any of the above categories and you travel interstate or across borders for commercial purposes, you are eligible to get an IFTA permit.

IFTA License & IFTA Decals

Getting into an IFTA Program and having an IFTA Permit are two different things. Anyone can get into an IFTA Program, but to get an IFTA License you have to apply officially with the required IFTA documents, plus your vehicle should also fulfill the requirements asked by IFTA.

To get the IFTA Permit and License you have to apply in your base jurisdiction, or if your state does not comply with IFTA you could apply in the neighboring state. The following list of documents are required to get into IFTA:

  • USDOT Number
  • Registered Business Name
  • Mailing Address
  • Federal Business Number

Once you get the IFTA License you will be given a pair of IFTA Decals for each of your vehicles. And you could also apply for more than one pair of IFTA Decal, which will cost you some $25 for each pair.

How We Can Help:

To file the IFTA reports correctly and enjoy the tax benefits, truckers and trucking companies must keep a comprehensive record of their travel details, fuel consumption, and mileage. The skilled experts at Global Multi Services will help you keep these records efficiently, and we will help you apply for the IFTA permit as well, as we deal with all kinds of trucking permits and services.

Global Multi Services hire all truck-related services to legally operate your carriers and save yourself from hefty fines by making your easy.

What Is International Fuel Tax Agreement (IFTA) Returns?

 Being aware of the rules and regulations is very important while making decisions, especially for drivers and carriers. One such principle limitation is the International Fuel Tax Agreement (IFTA), a collaborative deal between the 48 states of the United States and ten provinces of Canada. It allows inter- jurisdictional reporting for the fuel which vehicles consume within a single fuel tax license.

It is mainly designed to maintain a single fuel license within the state carriers. For each possessor of the permit, there will be a single administering base jurisdiction. However, Canadian territories, Alaska and Hawaii, do not participate in this. Operating carrier with IFTA also gets an IFTA license, and for every vehicle passed, there will be two decals imprinted on it. To figure out the refund, the carrier has to file a quarterly fuel tax report. This also leads to redistribution of the collected taxes from different which are due.

Experts at Global Multi Services are best at processing IFTA permits like:-


Who gets Qualified for IFTA?

Tax is needed for only two vehicles which are

  • Having weight more than 26,000 lbs when combined with Gross vehicle weight.
  • Having two axles and registered GVW weight over 26,000 lbs.
  • Having three axles or more irrespective of the weight.

Experts at Global multi-services quickly provide you with-

Quarterly IFTA Filing in which every motor carrier has to submit monthly driven miles to BOE so that they charge accordingly for every vehicle.

New Mexico Weight Distance Tax is implemented on owners, intrastate carriers with a GVW of 26,000 lbs or more.

Kentucky Highways Use Tax is (KYU) an organization calculated based on the distance covered by your vehicles traveled that calculated in Kentucky for vehicles with GVW 60,000 lbs more.

Experts at Global Multi Services will help you calculate the miles completed and distance travel within the state. Thus, getting truck permits is an easy task for them and will help you grow your business multi-services.