IFTA (International Fuel Tax Agreement)

A tax agreement between US states and Canadian provinces that simplifies fuel tax reporting for commercial vehicles operating across jurisdictions.

Definition

A tax agreement between US states and Canadian provinces that simplifies fuel tax reporting for commercial vehicles operating across jurisdictions.

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The International Fuel Tax Agreement (IFTA) is a cooperative agreement between the lower 48 US states and 10 Canadian provinces that simplifies the reporting of fuel use taxes by interstate and international motor carriers. Fleet management software automates IFTA reporting by tracking miles driven in each jurisdiction using GPS data.