IFTA, also known as the International Fuel Tax Agreement, was established to make it easier for interstate travelers to record and pay fuel taxes.
There are providers who provide IFTA reporting services where you can record and pay gasoline taxes according to the quantity of fuel you consume and the distance you travel.
There are different types of reporting, which are as follows:
1- Quarterly Fuel Tax Reporting:
When you travel to other countries, you are required to file fuel tax reports quarterly with the country where you are registered. The gasoline used by you and the mileage for each jurisdiction visited throughout the quarter should be specified in your reports.
2- Distance Records:
You must maintain accurate records of the distance traveled in each jurisdiction. You should include the total distance traveled by you and the distance you traveled in each area; these records can be in the form of trip sheets, electronic logging devices, or other acceptable documentation.
3- Fuel Receipts:
Fuel receipts or invoices, as well as records of your gas purchases, should be kept, such as the date of the transaction, the number of gallons purchased, the kind of fuel, name, and address of the vendor should all be included in these records.
4- Division of Jurisdictions:
Carriers must allocate their fuel consumption and mileage to each jurisdiction they travel to during the reporting period. This breakdown should reflect the actual miles driven and fuel consumed in each jurisdiction.
5- Mileage Calculation:
You must calculate your taxes by using the IFTA Mileage Calculator for each jurisdiction based on the distance records and the jurisdictional breakdown. This mileage calculation is used to determine the amount of fuel tax owed to each jurisdiction.
Instead of manually keeping track of and figuring out miles for each journey, use IFTA Mileage Calculator. This tool will save a lot of time over handwritten calculations. Enter the relevant information into the calculator, and it will immediately produce precise answers.
6- Fuel Tax Payment:
Based on the fuel consumption and mileage reported, you must calculate and pay the appropriate amount of fuel tax to their base jurisdiction. In response to the stated mileage of your vehicle, the base jurisdiction will allocate the taxes to the other jurisdictions.
7- Recordkeeping:
You are required to maintain your vehicle records and fuel tax by reporting for a specific period of time. These records should include the quarterly fuel tax reports, distance records, fuel receipts, and any other supporting documentation related to fuel tax reporting.
Overall,
If you are a car owner, you should refer to the IFTA rules and regulations of your local jurisdiction for particular instructions and any additional requirements.
If you are a car owner, you can make use of providers who offer you IFTA reporting services, as it makes reporting gasoline taxes easier, costs less to comply with regulations, and encourages fairness.
Brian Styris is the author of this article. For more details about Telematics Fleet Management please visit our website: etrucks.com
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