If you’re in the trucking industry, these words might carry some negative weight. After all, it’s annoying, tedious, and error prone. Not to mention the steep fines and possibility of losing permits that come with every audit.
At the end of the day, it’s compliance. We all have to do it to keep our trucks on the road; and luckily, through the right tools and processes, IFTA can actually be quick and straight forward.
Not sure what IFTA is? Don’t worry, we’ll explain how it all works, and what you need to know.
The International Fuel Tax Agreement (IFTA) is an agreement between US states and Canadian provinces that simplifies the reporting and payment of fuel taxes for vehicles that operate in multiple jurisdictions.
Basically, it simplifies the process of calculating fuel taxes so businesses can easily pay taxes in multiple jurisdictions.
Under IFTA, participating jurisdictions agree to recognize each other’s fuel tax licenses and to allow vehicles licensed in one jurisdiction to operate in other participating jurisdictions without having to obtain separate fuel tax licenses.
This simplifies fuel tax reporting and payment for carriers that operate in multiple jurisdictions, and helps to ensure that carriers pay their fair share of fuel taxes.
You are required to have an IFTA license if you operate in two or more jurisdictions and the power unit:
This typically includes interstate commercial trucking and bus companies, as well as other carriers that operate vehicles with a gross vehicle weight of at least 26,000 pounds in more than one jurisdiction.
If a carrier operates a qualified vehicle and travels in multiple jurisdictions, they will need to file for IFTA in order to report and pay their fuel taxes.
To stay IFTA compliant, carriers need to keep accurate records of their fuel purchases and vehicle mileage, file their IFTA returns on time, and accurately pay any required fuel taxes.
As a carrier here are the steps you have to take to stay IFTA compliant:
Make sure to check with your base jurisdiction’s requirements, as some of the specifics can vary between jurisdictions.
If you’re thinking that this sounds tedious and time consuming, don’t worry. You’re not alone. Luckily, over the years, carriers have found ways to make IFTA easier.
Nowadays, most carriers opt to use IFTA software to help manage the process of collecting and storing compliant fuel transactions and trip records–and for good reason.
Using the right tools and processes can save you business hundreds of hours, increase driver satisfaction, and save you from hefty audit penalties.
For example, MetaFuel automatically manages IFTA-compliant trip records for you by integrating directly with your telematics provider. Fuel transactions are captured simply by uploading a picture of your receipt. No more manually tracking or typing in your fuel data. Instead, computer vision and machine learning automatically handle the data parsing.
Unlike 3rd parties that completely abstract away your data, MetaFuel actually gives you more visibility into your fuel purchases and telematics data, in addition to streaming your records in real-time.
If you want to completely get rid of fuel receipts altogether, the MetaFuel card takes it a step further by completely automating the collection and aggregation of IFTA-compliant fuel transactions. Simply swipe, and you’re compliant. It’s brainless.
With machine-learning powered fraud protection, best-in-class rewards, card-level administrative controls, configurable notifications, and absolutely 0 fees forever, the MetaFuel card is a card built for the modern age, giving complete visibility and control of your fleet’s fuel spend. All integrated with the rest of your fleets data in the cloud. Just like it should be.
Of course, we can’t tell you what the best system for your fleet is. Only you can answer that.
With that said, if you’re not satisfied with your current solution, feel like you spend too much time on tedious processes, or are just looking to centralize and automate your IFTA compliance across your fleet, schedule a demo or contact us.