IFTA, or the International Fuel Tax Arrangement, is an agreement between 48 US states and 10 Canadian provinces that makes it easier for inter-jurisdictional truckers to declare and pay taxes on the fuels they use. At the end of each quarter of the year, owners of a commercial vehicles must file an IFTA report that details all their mileage and fuel purchases at their base jurisdiction.
Under IFTA, truckers will register with one jurisdiction (province or state) and get a single fuel tax license for all of their vehicles that will be authorized to travel in all IFTA jurisdictions. This way, truckers will not need to obtain a fuel permit from each member jurisdiction every time they travel through them.
At TradeHub, we will help you by registering for an IFTA Licence and preparing your fuel tax return.