International Fuel Tax Agreement (IFTA)
IFTA is a fuel tax collection and sharing agreement for the redistribution of fuel taxes paid by interstate commercial carriers.
Commercial carriers who travel interstate must pay fuel taxes proportionally, according to the miles driven in each state or province, the agreement ensures that each jurisdiction has its fair share of revenue to put towards roads and transportation.
Under the IFTA agreement, qualified motor carriers can obtain an IFTA license for their motor vehicles allowing them to travel through other IFTA jurisdictions and submit only one quarterly fuel tax return in their base jurisdiction for fuel usage. If motor carriers aren’t registered with IFTA, they must comply with the fuel tax reporting guidelines of each individual jurisdiction in which they travel, which may include purchasing fuel trip permits. Geotab's GPS vehicle tracking data allows for easy submission of required IFTA data.