Fuel taxes can make trucker's life miserable. Fortunately, there is a way to streamline paperwork.

IFTA: International Fuel Tax Agreement simplifies fuel tax for truckers and trucking companies. Once upon a time, it was a tedious process. It required truckers to stop at every terminal to buy permits due to a lack of Automated IFTA reporting. But this issue is resolved by IFTA. This blog will take you through significant talking points.

1- IFTA benefits for drivers

We all agree that paperwork is one of the most frustrating situations in any profession. An agreement reduces the paperwork for a duration. Truckers had to deal with several jurisdictions in order to pay fuel taxes prior to the agreement. The complexity of some of the regulations caused stress for everyone concerned. Trucking companies benefit from the IFTA tax calculator as it streamlines the complex revenue-sharing process among jurisdictions. Agreements also save money when compared to traditional paperwork.

2- How IFTA works?

Drivers must track their fuel consumption and travel distance in each jurisdiction. They can use automated IFTA reporting to reduce the complexity. Trucking businesses need to share their tax revenue accordingly.

Drivers need to renew their licenses every year. Furthermore, they must report every quarter even if you have yet to operate outside your home state. It's important to note that the agreement pertains not to drivers but to power units and trucks.

3- How truckers track their miles?

For truckers, there are two ways to track mileage: using smartphone applications and trip sheets. Many of us will be aware of these tracking mobile apps by now, and they are easy to use. With the IFTA tax calculator, drivers can track fuel consumption and mileage effortlessly.

On the other hand, tipsheets are a traditional way of tracking mileage. And it's somewhat complex compared to mobile apps. Drivers enter logs manually into the respective fields. Nowadays, there are plenty of electronic versions available for convenience. Regardless of whether it is electronic or paper, the risk of error increases in track sheets.

4- What IFTA requires?

Here is what you require for IFTA. The first step is to fill out the application, and you must apply based on your jurisdiction or state to start the process. This application applies to owners who operate a qualified motor vehicle that travels between multiple jurisdictions in Canada or the USA. From there, you must always keep the IFTA tag on your vehicle. You must also pay all your tax dues by the deadline.

5- How GPS can help?

Due to savings in money and time spent driving, many companies prefer telematic devices. Of course, time is indirectly money in every business. Here are ways by which telematics saves time:

a. Improvising route

b. Decrease in idle time

c. Automatic mileage tracking

d. Simplification of compliance

e. Tracks maintenance

To conclude

IFTA emerges as a saviour for truckers, discarding the tedious paperwork associated with fuel taxes. This international agreement simplifies processes and enhances cost-effectiveness. GPS technology, especially, further contributes by streamlining operations and promoting efficiency in the trucking industry.

Brian Styris is the author of this article. For more details about Oilfield Fleet Solutions please visit our website: etrucks.com