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Sunday, June 23, 2024

FUEL TAX FAQ-by Sonia Nanda

What is IFTA?
IFTA stands for International Fuel Tax Agreement. It is an agreement between 48 states in the United States of America and 10 provinces in Canada. It makes it easier for an Inter-jurisdictional carrier to register, licence, report and remit their taxes for motor fuels.

Do you need to register for an IFTA Account?
If you have a commercial vehicle which has three or more axles or weighs more than 11,797 kgs/26,000 lbs and you travel out of the province/state you reside in then you need to register for an IFTA Account.

Are there any fees for registering or maintaining an IFTA Account?
Each jurisdiction has a different amount for registration and decal fees. There are renewal fees that need to be paid annually.

What are IFTA decals and where do I put them?
IFTA decals are stickers that are issued along with IFTA license. The IFTA decals need to be placed on each side of the exterior of the cab. If you do not display the decals properly or the decal serial numbers do not match the IFTA licence, you may be fined each time your vehicle enters another jurisdiction.

Can I get a temporary permit?
A carrier can be issued a temporary permit by their base jurisdiction, allowing the carrier to use their vehicle immediately without displaying IFTA decals.

Are there any jurisdictions that are not part of the IFTA agreement?
Yes, Oregon, New York, New Mexico and Kentucky have their own requirements and require returns to be filed in addition to the IFTA returns.

How often do I have to file Fuel Tax?
Once registered, you need to file IFTA Quarterly Tax returns and remit the taxes owing by the filing dates:


Reporting Period

Due Date

1st Quarter

January, February, March

April 30th

2nd Quarter

April, May, June

July 31st

3rd Quarter

July, August, September

October 31st

4th Quarter

October, November, December

January 31st

What if I file my IFTA Tax return late?
If your return is submitted late and there is an amount owing, you may be charged interest on the overdue tax, and/or issued a warning letter or be assessed a penalty equal to 10% of the net tax due.

How long do you need to save your records?
IFTA requires you to retain the records for four years from the return due date or filing date, whichever is later.