IFTA is a collaboration between 10 Canadian provinces and 48 U.S. states. It makes it possible for interjurisdictional carriers to track and pay taxes on the fuel used by their vehicles in many states. with the aid of a single fuel tax licence.
Before the IFTA, truckers had to get gasoline licences from each state they crossed into. The procedure was not only inefficient, but it also resulted in extra expenses such as lost time, fuel used to travel to permit purchasing locations, and related fees. Additionally, fleets had to adhere to erratic filing deadlines, guidelines, definitions, and reporting requirements that necessitated numerous hours of administrative work. Through the existing IFTA system, a lot of the past of administrative work has now been streamlined and made simpler.