Fuel Tax Reporting Software – IFTA Fuel Information
International Fuel Tax Agreement or IFTA was actually an arrangement which came into existence with the purpose of bringing efficiency in the highway system among the member states of Canada and United States of America. The main goal of this agreement is to bring uniformity and effectiveness in the fuel taxation procedures followed by the member states within the IFTA framework. It has laid down certain rules and regulations regarding the taxation of fuels used by various licensees operating within the IFTA jurisdiction. Every licensee is required to report the requisite fuel information at the time of filing taxes, in-accordance with the IFTA guidelines. Fuel tax reporting software is a highly advanced software technology, which enables a licensee to efficiently calculate and report fuel taxes as per IFTA rules.
A licensee operating the qualified motor vehicles within the jurisdiction of IFTA member states shall have to report the consumption or purchase of fuel according to the IFTA laws. As per the IFTA ‘Article of Agreement’, under section R820, motor fuels which are normally subjected to consumption tax shall be taxable unless the licensee provides a proof for the contrary; moreover all the fuel placed in the supply tank of a qualified motor vehicle shall be reported as taxable fuel by the licensee at the time tax return. Fuel tax reporting software maintains all the aforesaid fuel information which is required for the tax reporting purpose. There can be different kinds of fuel like gasoline, special diesel, ethanol, methanol, CNG, LNG, bio-diesel etc, which can be used for consumption by a licensee operating within the IFTA jurisdiction. Thus it is highly difficult to manually maintain the information regarding all these types of fuels, for the purpose of filing taxes. Fuel tax reporting software not only helps a licensee to keep all the records relating to different kinds of fuel, but can also accurately calculate the motor fuel taxes as per the prevailing tax rates, in-accordance with the IFTA guidelines.
As per the IFTA ‘Procedures Manual’ under section P710 there is certain specific information, which is required to be filed under standard tax returns. Out of this specific information, certain relevant motor fuel information is also required. A brief description of this required fuel information is as follows:-
· A licensee shall have to report the total number of gallons or liters of motor fuel used while operating the qualified motor vehicles;
- Fuel information regarding the gallons or liters of motor fuel consumed within each member jurisdiction;
- Information regarding the tax-paid fuel purchased within each member states.
IFTA fuel tax reporting software manages and maintains all such complex information.
Maintaining fuel information related to IFTA reporting procedures is a highly tedious task. IFTA fuel tax reporting software is specifically designed to tackle all such information in an extremely convenient manner; moreover this software calculates all the motor fuel taxation in total compliance with the IFTA guidelines. Thus fuel tax reporting software enhances the efficiency of its associated licensees which are operating within the jurisdiction of IFTA member states.
About the Author:The ITS Dispatch - IFTA Fuel Tax Software is a web based, inexpensive , and easy tool that meets the needs of small and medium sized companies. Nothing to buy, download or install and no computer upgrades required! For More Information please visit us: http://www.its-dispatch.com/iftafueltaxsoftware.php
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