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IFTA Fuel Tax Software – Taxation of Motor Fuels
International Fuel Tax Agreement (IFTA) was enforced to induce a high level of efficiency in the highway and transportation system, falling within the jurisdiction of various states of Canada and United States of America. This agreement was introduced in-order to formulate a systematic fuel tax collection and distribution mechanism, within the framework of various IFTA member states. International Fuel Tax Agreement has made it mandatory for a licensee operating in the aforesaid jurisdiction to pay taxes on all the different kinds of fuel used, while traveling within the territories of the IFTA member states.
As per the IFTA, ‘Articles of Agreement’ section R800 each jurisdiction shall impose fuel taxes on the consumption of motor fuel by the qualified motor vehicle, as defined by the article. A qualified motor vehicle is defined by the article, using various parameters like number of axels or the gross weight of the vehicle. The licensee must report all the fuels placed in the supply tank of the qualified motor vehicle, at the time of filing the tax returns. Gasoline, special diesel, gasohol, propane, LNG, CNG, ethanol, methanol etc are some the kinds of fuel which can be used by a licensee. A member jurisdiction may exempt from taxes, any type of motor fuel usage within its jurisdiction.
IFTA Fuel Tax Software has simplified the various tax calculation procedures. Some of the fuels are applicable for taxation within a member jurisdiction, whereas some of the other fuels are exempted. This rule has led to high level of complexities in the calculation of taxes. But the IFTA fuel tax software has overcome these complexities. This sophisticated software is devised in such a fashion that it helps a licensee to calculate all the fuel taxes, in- accordance with the rules and procedures of International Fuel Tax Agreement. It is designed as per the laws and regulations of IFTA. Fuel tax software not only carries out tax calculations but also enable a licensee to maintain the various records, which are required to substantiate at the time of audit procedures. The user has to fill in certain basic information like number of miles traveled by the vehicle, the amount and types of fuel used etc, and the taxes are calculated by this software as per the guidelines of IFTA.
This technologically advanced software has induced enormous efficiency in the system of highway transportation, within the IFTA member jurisdiction. IFTA fuel tax software has overcome the various intricacies related to the tax calculations and other reporting procedures, which are required by the rules of International Fuel Tax Agreement. IFTA fuel tax software is a highly convenient technology, which has enabled various trucking companies and individual licensees to carry out all their business operations efficiently, within the jurisdiction of IFTA member states.
About the Author
The ITS Dispatch - IFTA Fuel Tax Software is a web based, inexpensive , and easy tool that meets the needs of small and medium sized companies. Nothing to buy, download or install and no computer upgrades required! For More Information please visit us: http://www.its-dispatch.com/iftafueltaxsoftware.php
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