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The Purpose of filing fuel tax IFTA

The purpose of IFTA International Fuel Tax Agreement is to accurately tax the fuel that was purchased and used in different jurisdictions.

For Example: Someone may purchase fuel in one state, but that fuel will not all be used in that particular state. style They might drive through another state without buying any fuel, then buy fuel again in another state. In this situation, the driver did not pay any taxes in the state that they just drove through. IFTA was created as a way to ensure that the state that received no tax dollars is compensated due to the fact that fuel was used on its roads.

To file this form online, the simplest option is to use expressifta You can create Trip Logs, and automatically generate the amount owed. Once this is all completed, the form can be sent to the base jurisdiction.

(Note: the base jurisdiction is the state or province in which the vehicle is registered.)

The tax is paid to the base jurisdiction and based on the number of miles travelled and fuel purchased; the tax will be allocated to the appropriate jurisdictions.

Recordkeeping Requirements for filling IFTA

Complete fuel records of all motor fuel purchased, received, and used in the conduct of its business must be maintained. Separate totals must be compiled for each motor fuel type and retail fuel purchases and bulk fuel purchases are to be accounted for separately.

The fuel records shall contain, but not be limited to:

  • The date of each receipt of fuel;
  • The name and address of the person from whom purchased or received;
  • The number of gallons or liters received;
  • The type of fuel; and
  • The vehicle or equipment into which the fuel was placed.

Retail purchases must be supported by a receipt or invoice, credit card receipt, automated vendor generated invoice or transaction listing, or microfilm/microfiche of the receipt or invoice. Receipts that have been altered or indicate erasures are not accepted for tax-paid credits unless the licensee can demonstrate the receipt is valid. An acceptable receipt or invoice must include, but shall not be limited to, the following:

  • Date of purchase;
  • Seller's name and address;
  • Number of gallons or liters purchased;
  • Fuel type;
  • Price per gallon or liter or total amount of sale;
  • Unit numbers; and
  • Purchaser's name

A licensee may claim a tax-paid credit on the IFTA tax return for bulk fuel only when the bulk storage tank from which the fuel is withdrawn is owned, leased or controlled by the licensee; the fuel is placed into the fuel tank of a qualified motor vehicle; and either the purchase price of the fuel includes tax paid to the member jurisdiction where the bulk fuel storage tank is located or the licensee has paid fuel tax to the member jurisdiction where the bulk fuel storage tank is located. Bulk fuel records must contain the following:

  • Date of withdrawal;
  • Number of gallons or liters;
  • Fuel type;
  • Unit number; and
  • Purchase and inventory records to substantiate that tax was paid on all bulk purchases.

Maintaining good records will help you should you ever undergo an IFTA audit and it makes preparing your IFTA returns even easier.


There are specific requirements necessary to maintain accurate IFTA records. ExpressIFTA makes it easy to maintain the records required for your IFTA return and and have them readily available, should you ever be audited. To find out more about IFTA filing or get started today, contact our friendly Express Tax Support Center in Rock Hill, SC at 704.234.6005 between the hours of 8am 6pm EST, Monday through Friday or email us at support@ExpressIFTA.com.

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