What Is IFTA and What Do You Need to Know About It



In order to keep your business running, you need to follow the rules that are set up by the government. When it comes to trucking, the government has set up the IFTA (International Fuel Tax Agreement).

Following the rules that are set up by the authorities is a responsibility each trucker or manager should follow. This includes the IFTA, USDOT numbering, material regulations, and many more rules.

It is important for truckers and business owners to know the rules properly, this allows them to become more compliant with the rules and aware of how the rules and regulations can help you and your truckers who are working constantly.

What is IFTA?

IFTA (International Fuel Tax Agreement) is a cooperative agreement that is in law in 48 states of the United States of America and 10 provinces of Canada. It allows inter-jurisdictional carriers to report and pay taxes for the fuel, which is being consumed across states using a single fuel tax license.
In order to understand what the International Fuel Tax Agreement is, you need to know how and why the law was created.




The International Fuel Tax Agreement was established to provide uniformity and efficiency amongst truckers in 48 states of the United States of America and 10 provinces of Canada. Experts believe that the IFTA saves a lot of money and time for truckers and trucking companies.

Before the International Fuel Tax Agreement came into law, truckers and truck companies were asked to get fuel permits from every single state that they enter. The old law was inefficient, costly, and wasted a lot of time of truckers. It also cost a lot of fuel money for truckers because they had to buy a permit from a different state and had to pay applicable fees.

Truckers and companies were also forced to comply with inconsistent filing periods, reporting requirements, and a lot of rules that made the process really long.

How Does IFTA Work

The International Fuel Tax Agreement is an agreement that makes sure that jurisdictions are being followed properly. Under the International Fuel Tax Agreement, truckers are required to report an inter-jurisdictional fuel use to their base state.

After filing a report, the state is going to collect the taxes on net fuel use, process your fuel tax returns, and distribute the funds to other states.

If you need help with, Prorate filing Alberta you can contact Pioneer Financial Services!

Who Needs the International Fuel Tax Agreement?

Companies or truckers are required to have an International Fuel Tax Agreement if they are based in a member state and if companies operate across 2 or more member jurisdictions.
International Fuel Tax Agreement means a qualified motor vehicle as a vehicle that is built to transport people or property.

In order to get qualified, trucks should be the following:

1.       A vehicle that has 2 axles

2.       A vehicle with a gross weight of over 11,797 kilograms

3.       A vehicle that is more than 26,000 pounds

4.       A vehicle with any weight but with 3 axles

5.       A vehicle with any weight but with more than 3 axles

If you need help with IFTA filing Alberta, you can contact pioneer financial services!



Location: 3770 Westwinds Dr NE #102, Calgary, AB T3J 5H3, Canada

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