International Fuel Tax Agreement
International Fuel Tax( IFTA)
IFTA is a multi-jurisdictional fuel tax agreement among member jurisdictions to simplify the reporting of fuel taxes.
Carriers have two choices when it comes to Fuel Tax. The carrier can either purchase fuel permits each time they wish to travel to other jurisdictions or they can enroll in the IFTA program.
If you are an Alberta carrier with qualified motor vehicles not registered for IFTA, your vehicles cannot travel in other IFTA jurisdictions without purchasing a trip permit for fuel tax purposes.
Benefits of an IFTA membership
- A carrier licensed under IFTA is required to submit only one quarterly fuel tax return to its base jurisdiction, where it is registered.
- The single return covers the distance travelled in all IFTA jurisdictions, rather than the carrier being required to complete separate fuel tax returns for each jurisdiction.
- Each base jurisdiction then refunds or collects the net fuel tax for all member jurisdictions.
The carrier keeps track of the kms and the litres of fuel purchased in each jurisdiction that they travel into for each registered Unit and submits the information to our office to file quarterly. (March 31, June 30, September 30, and December 31)
A carrier can register for IFTA in Alberta if it:
- operates one or more qualified motor vehicles base-plated in Alberta or the Northwest Territories
- travels to at least one other IFTA jurisdiction
- allocates some income to Alberta for income tax purposes
- does not have an amount owing or an unfiled IFTA return for a prior reporting period
Eligible motor vehicles
A qualified motor vehicle is one used, designed, or maintained for the transportation of persons or property and meeting one of the following size and weight requirements:
- 2 axles and a gross vehicle weight or registered gross vehicle weight exceeding 11,797 kilograms (26,000 lbs.)
- 3 or more axles regardless of weight, or
- if used in combination with a trailer, a combined weight that exceeds 11,797 kilograms (26,000 lbs.)
A recreational vehicle is not a qualified motor vehicle.
Special rules apply for farm-plated vehicles registered under IFTA
We can help
Our office registers the carrier’s units under the IFTA program and provides them with decals for their units. We can also provide decal replacements or add/delete units to the program.
Filing for New Mexico, Oregon, and the Yukon is done separately or carriers can buy separate permits for these jurisdictions.