Calculate IFTA Through ELD And Team Management
IFTA is a fuel tax agreement signed between 48 states of the United States and 10 states of Canada, with the purpose of centralized declaration and taxation on a single license. Before IFTA, truck drivers and operators were required to pay fuel taxes separately in all the states they traveled.
According to state regulations, calculating the fuel tax for cross jurisdictional travel seems to be a boring task. With new technologies such as GPS and ELD guidelines, fleet management, fuel consumption, mobility and other operations become efficient and cost-effective.
IFTA’s tax calculation can be simply described as the following five steps:
Mile tracking: It is important to accurately record the fuel consumption of each driving state. When crossing the state border, the driver shall record the interpretation of the mileage plate and cooperate with the vehicle manager to provide accurate information. However, various vehicle management software records the overall tracking of fuel, journey and vehicle movement through GPS.
Matrack provides a vehicle matrix tracking system with four hardware solutions according to customer requirements. We have also developed excellent applications that can be downloaded to the mobile devices selected by customers to track the fleet anytime, anywhere. With the help of the vehicle tracking system, the distance traveled in each state can be calculated with one click.
Fuel procurement: To apply for IFTA tax, the following information and original invoice or receipt related to fuel procurement must be submitted:
Name of pilot
license plate
Fuel purchase date
Gallons of Fuel Purchased
Fuel type
Price per gallon
Name of fuel seller
Location of fuel sellers
In addition to GPS, Matrack also cooperates with American Express to provide customers with fuel cards. This greatly supports vehicle administrators to check fuel usage, better transactions, and detailed fuel purchase history reports, so that they can easily organize the data needed to file tax returns according to IFTA.
Weekly fuel consumption: For trucks passing through more than two IFTA member states, the weekly mileage can be calculated by two simple formulas.
Total distance travelled by Member States ¹ Total fuel distance=fuel consumed in the country
Total fuel mileage=total mileage ¹ Total gallons of fuel consumed
However, many cloud based vehicle management applications are efficient and accurate in recording fuel data. Matrack Incorporation’s new product MA3000 is an ELD approved by FMCSA Because GPS tracking and other data can be recorded on a single platform, it has multiple functions and can easily calculate fuel consumption.
Applicable oil tax rate: The oil tax rate may vary from state to state and from quarter to quarter.
Final calculation: To calculate the original amount of oil tax, the following formula can be used:
Payable oil tax – paid oil tax=payable oil tax
The fuel purchase invoice or the fuel tax paid to the country mentioned in the invoice.
The above formula may need to be adjusted according to certain vehicles or certain IFTA regulations applicable to specific conditions, for example, according to the rules of each jurisdiction, the taxable distance, taxable fuel consumption and additional costs should be considered.
If IFTA is adopted to calculate and report fuel taxes in jurisdictions, Matrack will follow the rules and update all applications to support IFTA regulations. Dell’s solution will simplify mileage, fuel usage, taxable miles and gallons, and state fuel tax calculations.
IFTA uses Matrack Incorporation Fleet to manage applications and hardware, which can calculate efficiently, simply and accurately, and help save a lot of time. Otherwise, it will be used for recording, manual data collection and distance traveled, gallons of fuel used, taxable fuel, and total tax calculations.