How To Register For Ifta

An IFTA license and decals streamline the payment of fuel taxes to multiple jurisdictions
If you operate across 2 or more states, y'all might be subject to the IFTA license requirement
Automate IFTA reporting with a comprehensive armada direction solution

When IFTA came about, it profoundly simplified state and (and, for Canada, province) fuel revenue enhancement reporting for interstate commercial carriers. Information technology is now a practical requirement that carriers crossing 2 or more state or provincial lines need to be licensed by IFTA and display electric current IFTA decals.

Obtaining IFTA licensing is a relatively simple procedure, and it is a must if yous run across the qualifications.

What is IFTA?

IFTA is an acronym for International Fuel Tax Agreement. Information technology is an agreement adopted in 1996 that allows for the collection and redistribution of fuel taxes paid by interstate commercial carriers.

Commercial drivers have always been required to pay fuel taxes in u.s.a. where they traveled, no matter where the fuel was purchased. Each state has its ain IFTA requirements and charges its ain fuel tax rate. Prior to IFTA, carriers had to register in each state across which they traveled and braze decals to their vehicles, showing that they had registered. The trucking company was then responsible to run into that the proper fuel taxes were paid to the proper states or provinces, or refunds collected if they were due. It oftentimes became an administrative nightmare.

IFTA profoundly simplified this process. Forty-eight American states (excluding Alaska, Hawaii, and the District of Columbia) and 10 Canadian provinces (excluding the Northwest Territories, Nunavut, and Yukon) participate in the understanding. A carrier obtains a single IFTA license for their vehicle or vehicles. They are then allowed to travel through all IFTA jurisdictions and are only required to submit one quarterly fuel tax return to their base of operations jurisdiction.

Who needs an IFTA license and decals?

An IFTA qualified motor vehicle is ane congenital and used to transport belongings or people and:

Has 2 axles and a gross vehicle weight of over 11,797 kilograms or 26,000 pounds, or
Of any weight, with 3 or more axles, or
Is used in combination and has a weight that exceeds xi,797 kilograms or 26,000 pounds.

Any carrier operating a vehicle or vehicles fitting any of the above descriptions likely require an IFTA license if they are based in an IFTA member state or province, and operate across two or more than fellow member states or provinces.

IFTA application: How to utilise for IFTA license and decals online

Obtaining an IFTA license and decals are important steps in becoming a successful owner operator. If your company requires an IFTA license, you need to utilise in your base state. IFTA application forms tin be found online (it differs by each country), and are administered by the Department of Transportation for your state, revenue enhancement drove agency, or other agency.

Search online for "IFTA application [proper name of your state]" to find the right IFTA awarding class.

Sometimes application forms serve dual purposes, such equally applying for additional decals or making account changes.

What do you need for an IFTA license application?

Basic information required by the application includes:

USDOT number
Registered business concern proper name
Mailing address
Federal concern number

Once your IFTA license application is processed, your state or provincial IFTA authority will issue official IFTA decals for the current yr. You can receive a temporary license by fax while your decals are beingness sent.

How long does the IFTA license final?

An IFTA license and decals elapse on Dec. 31 of each year. You are allowed until March 1 of the following year earlier yous must carry a current IFTA license, and display current decals on your vehicles.

How many IFTA decals practice you need?

Yous volition exist provided two IFTA decals for each licensed vehicle. Y'all need to display i on each side of your truck cab.

Computing IFTA reporting

Once you are licensed, you must file a quarterly IFTA fuel tax return with your base of operations state. Return deadlines are:

1st quarter (Jan. to March)—Apr 30
2nd quarter (April to June)—July 31
third quarter (July to Sept.)—Oct. 31
4th quarter (Oct. to Dec.)—January. 31

Y'all will exist required to track your miles for each state. Fleet managers and drivers must work together to brand sure the amount of fuel consumed for each country or province is accurately recorded. Whenever drivers cantankerous state or province lines, they should record odometer readings.

Fuel purchases must be accurately recorded besides. These consist of the total gallons of fuel purchased in each state or province. Information technology is up to the carrier to retain original receipts or invoices to testify that fuel tax was paid.

Once total miles per state or province and fuel purchases accept been calculated, the fuel miles for each jurisdiction must exist calculated. Fuel miles calculation can be done with an like shooting fish in a barrel formula:

Full miles driven ÷ total gallons = overall fuel mileage

To calculate gallons of fuel consumed in each jurisdiction, you tin input your overall fuel mileage into this formula:

Total miles driven in (specific state or province) ÷ overall fuel mileage = fuel consumed in (specific land or province)

The fuel purchases per state or province are the metrics you lot demand to calculate the fuel tax your company owes each jurisdiction. This calculation is dependent on the applicable rates during the IFTA quarter. Fuel taxation rates for each fuel type and country or province can exist viewed on the IFTA website. Note that you shouldn't perform the calculation until then, as the rates are subject to alter.

The formula, finally, for calculating the actual amount owed each state or province is:

Fuel tax required in (specific country or province) – fuel tax paid in (specific state or province) = fuel tax owed to (specific state or province)

How doesKeepTruckin simplify IFTA reporting?

Traditionally, vehicle miles and fuel purchases had to be reconciled manually. Everything, from fuel purchase receipts to miles driven in each state or province must be accounted for. Drivers can use the tax reporting worksheet from the Owner-Operator Independent Drivers Association (OOIDA) to track fuel purchases, miles driven, states or provinces, and routes traveled.

KeepTruckin offers automatic IFTA reporting that allows for automatic monitoring and sorting of fuel purchases and costs for each state or province.

Fuel purchase data tin be uploaded in one of ii ways. A CSV file from fuel menu providers such every bit EFS or Comdata can be directly uploaded through KeepTruckin's integration. Alternatively, drivers can manually submit their fuel purchases also as upload pictures of fuel purchase receipts from the KeepTruckin app. You won't dread IFTA reporting anymore.

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Obtain your IFTA licenses and decals

If you lot own and/or operate a commercial truck or fleet that meets IFTA qualifications, you will need an IFTA license and decals to display on each vehicle. They are obtained through your country or provincial agency. You must then track your mileage in each state or province, and keep track of your fuel usage in each. Tracking and reporting are made considerably more accurate and easy through the use of software such every bit the KeepTrucking Fuel Taxation Reporting software solution.

For more data on IFTA, read our guide on everything you lot need to know about IFTA.

Request a free demo of the KeepTruckin fleet management solution to larn how it can assist commercial fleets simplify the IFTA fuel tax reporting process.