International Fuel Trade Agreement

Under the IFTA, interjurisdictional carrier reports the amount of fuel consumed and the distance travelled in the different jurisdictions. Member States cooperate to track, remove and divide taxes on fuels such as petrol, diesel, propane, diesel, methanol, ethanol, natural gas and biodiesel. The International Fuel Tax Agreement (FITA) is an agreement between the 48 lower U.S. states and Canadian provinces to facilitate the reporting of fuel consumption by fuel companies operating in more than one country. [1] Alaska, Hawaii and the Canadian territories are not required to participate, but all of Canada and Alaska do. An IFTA-owned executing carrier receives an IFTA licence and two decals for each qualified vehicle it operates. The carrier provides a quarterly fuel tax return. This report is used to determine the tax or net refund due and to redistribute taxes from collector states to the states due. Simply put, the IFTA works as a “pay numbers now or later” system. When commercial vehicles purchase fuel, all taxes paid on fuel are credited to the licensee`s account. At the end of the business quarter, the licensee finalizes his fuel tax return, lists all miles flowed in all participating countries and lists all gallons purchased. Then, the average fuel power is applied to miles travelled to determine each country`s tax debt. Three states – Kentucky, New Mexico and New York – have weight taxes, in addition to the normal fuel tax.

Oregon has only a weight tax. Each amount of fuel taxes (or refunds) due is then paid (or obtained) to the basic jurisdiction that issued the licence. The Member States then take care of the corresponding transfer of funds. Audits are carried out only by the base state and fuel obligations are rarely required. The IFTA Tax Rate Matrix is the official source of all IFTA fuel tax rates. Under this program, an ifta truck is registered and receives a state fuel tax authorization. When the vehicle passes through a participating state or province, the fuel tax purchased there is credited to the authorized person`s account. At the end of the quarter, a fuel tax report is finalized, showing the miles travelled and the gallons of fuel for each region.

Qualified commercial vehicles operating in more than one U.S. state or Canadian province must submit a consolidated report on fuel taxes (for example, gasoline. B, diesel, liquefied natural gas, compressed natural gas and liquefied natural gas). In the 1980s, some states entered into agreements on the establishment of a common revenue distribution program and the removal of the fuel tax authorization requirement. Over the years, this program has become IFTA. For the submission of IFTA`s rights, the licensee establishes, at the end of the business quarter, a report on the fuel tax, which lists the miles travelled in all participating jurisdictions and the litres of fuel purchased there. Support documents include mileage, distance readings, fuel readings and vouchers taxed for retail fuels. All relevant data, such as empty miles and fuel vouchers, must be taken into account when notifying IFTA claims.

A single travel authorization allows qualified vehicles to travel conditionally to another country. Approval applies to a vehicle that, for a predetermined duration and duration, enters another jurisdiction.