The base jurisdiction is processing the IFTA tax tool return and then forwards funds to each jurisdiction for net fuel taxes.
IFTA application is an agreement mostly among the Canadian provinces and some American states. It is done in order to make reporting and tax paying on fuel usage easier.
The agreement allows the registered carriers to get a base jurisdiction license, by which they can report and pay fuel taxes to a single jurisdiction.
With the help of the IFTA application, carriers report the amount of fuel consumption, as well as the distance, traveled in a jurisdiction.
The member jurisdictions work together in order to track, collect as well as share the taxes on fuel including gasoline, diesel, gasohol, methanol, natural gas, and biodiesel.
If you register with the IFTA application, you can get a benefit of the following:
- An IFTA license to travel in all member jurisdictions
- Dealing with a jurisdiction to report and pay motor fuel taxes
How Does the International Fuel Tax Agreement Work?
Many people often question on the IFTA reporting software.
