Mastering IFTA Receipts: What Trucking Companies Need to Know

If you're managing a fleet that crosses state or provincial lines, there's one four-letter word that can either keep your business compliant—or cost you thousands in fines: IFTA.

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Navigating the International Fuel Tax Agreement isn’t optional, and it’s far more than just another line item on your to-do list. From tracking fuel receipts to logging every mile in every jurisdiction, IFTA reporting can be a logistical headache without the right systems. But with the proper knowledge, you can turn a compliance burden into a smooth, streamlined process.

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What is IFTA?

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The International Fuel Tax Agreement (IFTA) is an agreement between the 48 contiguous U.S. states and 10 Canadian provinces, intended to “establish and maintain a single fuel tax license for... qualified motor vehicles.” In simple terms, this means that instead of filing tax paperwork for every state where you purchase fuel, you only need to submit one quarterly tax return to your base jurisdiction.

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IFTA defines “qualified motor vehicles” as those with three or more axles, or two-axle vehicles with a gross vehicle weight of more than 26,000 pounds. Recreational vehicles—such as motorhomes or pickups with campers—are not considered qualified vehicles if they’re used for personal purposes and not part of a business operation.

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How Does IFTA Work?

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Each quarter, registered trucking companies file a tax return that includes the following information:

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• Total miles traveled in each member jurisdiction
  
  
• Total gallons of fuel purchased and used in each jurisdiction
  
  
• Taxable gallons and tax-paid gallons for each jurisdiction
  
  
• Net tax or refund due
  
  

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Once the return is filed, the base jurisdiction processes it, collects the taxes owed, and redistributes the funds to the appropriate jurisdictions where the fuel was used.

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What Documentation Does IFTA Require?

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When filing a quarterly tax return, companies must include accurate documentation to support the legitimacy of their trips. Required documents include:

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• Driver logs for each trip
  
  
• Fuel receipts showing date, vendor, and number of gallons purchased
  
  
• Individual Vehicle Mileage Records (IVMRs)
  
  

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Most jurisdictions require IFTA records to be kept for a minimum of four years.

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Reduce the Paperwork for IFTA

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Maintaining accurate records is perhaps the most complex and time-consuming aspect of IFTA compliance. Not only does it involve manual data entry, but you're also expected to keep a filing cabinet full of documents for four years? That’s crazy—right?

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Fortunately, IFTA allows for the use of various software solutions—including expense management platforms like Outpave—to reduce the administrative burden of compliance.

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Managing your fuel expenses with Outpave eliminates the need for bulky files and loose fuel receipts. With our easy-to-use app, drivers can quickly upload receipts at the time of fuel purchase. In an area with limited reception or data? No problem. Just snap a picture of the receipt on your phone and upload it when you're back in range. The system will automatically match the receipt to the correct expense.

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Once documented in the system, it only takes a few clicks to organize, categorize, and allocate expenses—making it easier than ever to submit fuel records alongside your IFTA tax return.

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Get Started Today

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Request your demo today to get started with Outpave and start organizing those pesky fuel receipts. Don't forget to follow our social media channels for more information on how our software can improve your expense management practices.

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