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Index
What is the purpose of the
International Fuel Tax Agreement (IFTA)?
IFTA is an agreement
among American states and Canadian jurisdictions
that enables uniform collection and distribution
of fuel taxes paid by motor carriers traveling in
several jurisdictions. It is a voluntary program.
What
benefits does IFTA membership offer?
Carriers that regularly
travel in other provinces or states and purchase
fuel in one jurisdiction, but use the fuel in another
jurisdiction, will benefit. IFTA membership allows
the carrier to significantly reduce the paperwork
and compliance burden for fuel tax reporting. 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 traveled 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.
Who can register for IFTA membership?
A carrier may be registered
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, and
- does not have outstanding
returns or owe any monies for a prior reporting
period.
What
is a qualified motor vehicle?
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:
- two axles and a
gross vehicle weight or registered gross vehicle
weight exceeding 11,797 kilograms (26,000 lbs.);
- three 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.
The requirements are found in Information
Circular IFTA-2R6, Alberta IFTA Licensing and Reporting
Requirements.
What is the cost to register
under IFTA?
The applicable registration fees for each
carrier are:
- up to and including
December 31, 2006:
- an annual registration
fee of $10.00 for the Alberta IFTA Fuel Tax
Licence, and
- an annual decal
fee of $5.00 per set of two decals per qualified
motor vehicle.
- starting January
1, 2007:
- an annual registration
fee of $15.00 for the Alberta IFTA Fuel Tax
Licence, and
- an annual decal
fee of $10.00 per set of two decals per qualified
motor vehicle.
The applicable registration
and decal fees must be submitted with the carrier's
initial registration or annual renewal application.
What
are the requirements if I register under IFTA?
You must file an IFTA
return for each calendar quarter. Each return is
due at the end of the month following the quarter
being reported. If the due date for the return falls
on a weekend or government holiday, the due date
for both filing and payment is the next business
day.
An IFTA return is considered
filed on time if it is postmarked or received by
TRA by other means on, or before, the due date.
A late filing penalty of $50 or 10 per cent of the
assessed unpaid taxes, whichever is greater, is
assessed for failing to file a return or filing
a late return.
What if I am registered
under IFTA and travel only in Alberta or have no
travel during a calendar quarter?
An IFTA return must
be filed for each calendar quarter even if the carrier
traveled only in Alberta or the IFTA registered
vehicles were not used during the calendar quarter.
If travel was only in Alberta, report only the kilometers
traveled and litres consumed in Alberta.
To
whom do I make my IFTA payment?
Make your IFTA payments
to Alberta Finance, Tax and Revenue Administration
by mail, courier or personal delivery, at most Canadian
financial institutions or through financial institutions'
Internet payment services or through TelPay for
Business. Make cheques and money orders payable
to the Minister of Finance. Payments made at banks
must be accompanied by an original Remittance Advice
form. For additional information on payment options
refer to Information
Circular IFTA-2R6, Alberta IFTA Licensing and Reporting
Requirements.
Do
I have to register under Alberta Infrastructure
and Transportation's Prorate before I can register
for IFTA membership?
No, a carrier does
not have to register under the Prorate program to
register under IFTA. The programs are not related.
You may register for one, both, or none of the programs.
Click on the names below for more information about
these programs:
Where should the IFTA decals
be placed?
Place the decals on
each side of the vehicle near the bottom back of
the cab or sleeper door.
What
if I have not received my IFTA credentials for the
coming year before December 31?
For information about
the status of your renewal, please contact TRA by
email
or telephone at (780) 427-3044 [Call 310-0000; then
enter (780) 427-3044 for toll-free service in Alberta
] or fax at: (780) 427-0348.
When
do I use special permits?
If you are an Alberta
carrier with qualified motor vehicles that are not
registered for IFTA, your vehicles will not be able
to travel in other IFTA jurisdictions unless you
have purchased a trip permit for fuel tax purposes.
If you are not a member of a licensing Prorate plan,
you will have to purchase a trip permit for licensing
purposes. Contact the relevant jurisdictions for
information regarding the purchase of these trip
permits.
For complete information
about the IFTA program administered by TRA, see
the IFTA
series of information circulars.
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