International Fuel Tax Agreement (IFTA)

Important notices

Postal strike and TRA requirements

Regardless of a postal delay, taxpayers and other entities required to make filings and payments with Tax and Revenue Administration (TRA) are still responsible to ensure those obligations are met. All applicable penalties and interest will continue to apply.

For more information about your obligations when a mail disruption occurs including electronic filing and payments, refunds, mail, and courier options, read: Special Notice Vol.8 No.7 – Mail Disruption Contingency Plan for all Programs

Overview

IFTA is an agreement among American and Canadian jurisdictions that enables uniform collection and distribution of fuel taxes paid by motor carriers traveling in multiple jurisdictions.

Membership is voluntary and allows the carrier to reduce the paperwork and compliance burden for fuel tax reporting.

Once registered, a carrier must submit returns to Tax and Revenue Administration (TRA) on a quarterly basis and report all fuel purchased, and mileage travelled, for all of their IFTA vehicles.

Carriers can renew their IFTA licence and receive new decal sets each year. See IFTA Top 10 Tips.

Benefits of an IFTA membership

• Carriers submit only one quarterly fuel tax return to their base jurisdiction, where they are 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.

IFTA and the Prorate program

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 neither program.

Eligible carriers

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 people 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 kg (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 kg (26,000 lbs.)

A recreational vehicle is not a qualified motor vehicle.

Special rules apply for farm-plated vehicles registered under IFTA as outlined in Information Circular IFTA-1R9 – Information for Interjurisdictional Carriers.

If you do not register your vehicle

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.

If you are not a member of a licensing Prorate plan, you will have to purchase a trip permit for licensing purposes. Contact the jurisdiction(s) you will be travelling to for information on the purchase of trip permits.

For complete information about the IFTA program administered by TRA, see the IFTA series of information circulars.

Cost

The registration, renewal and reactivation fees for each carrier are:

• an annual registration fee of $15
• an annual decal fee of $10 per set of 2 decals per qualified motor vehicle

Carriers must submit both the registration and decal fees with their initial registration or annual renewal application.

How to register

Complete the IFTA registration if you:

• will be travelling outside of Alberta, and have a qualified motor vehicle
• have never had an Alberta IFTA licence or it has been 4 years or more since you had an Alberta IFTA licence
• amalgamated and the successor corporation requires an IFTA licence

Step 1. Create a basic Alberta.ca Account or sign in using your existing account

Continue to Alberta.ca Account

Step 2. Select Program Registration

• Select 'Program Registration', then 'IFTA’.
• Complete the form and pay the registration and decal fees. TRA will not approve the registration until fees are paid in full.

Step 3. Submit the registration form

• After submitting your form, you will receive a pending status notification and a reference number. TRA may need to contact you for further information.
• You will receive an approval email once your registration has been approved.

Step 4. Once approved

• Your licence will be available in your TRACS account.
• Decals will be mailed, unless 250 or more decal sets were ordered and courier was requested.

For detailed step-by-step instructions, see:

• IFTA Registration Instruction Guide
• Video: How to complete the IFTA Registration

How to file

IFTA requirements and due dates

IFTA returns and remittances are required quarterly, and are due on the last day of the month following the end of the calendar quarter reporting period. A return is still required when there is no travel, or when you only travel in Alberta.

You are required to report:

• all fuel put into qualified vehicles, including fuel provided by a third party
• all mileage travelled by qualified vehicles, including off-road travel and personal use, on the IFTA fuel type schedule

Note: Licensed vehicles with IFTA credentials, including those with farm plates, can use only clear fuel. Using marked fuel is not permitted.

Step 1. Complete the IFTA return

• Sign in to your TRACS account and select 'File a Return'.
• If a return is filed late, a penalty of $50 or 10% of the assessed unpaid taxes, whichever is greater, will be charged.

Step 2. Submit your return

• Submit the return and print the confirmation page for your records.

Step 3. Remit the amount owing and view the Notice of Assessment

• See Making payments.
• Interest will be charged on late remittances and will accrue until the balance is paid in full.
• If changes were made to your return, or a balance is owing, a notice of assessment will be available in TRACS.

Watch the How to file the IFTA Quarterly Tax Return video for step-by-step instructions.

Additional decals and permits

Additional decals

Additional decals will be mailed unless 250 or more sets are ordered. Any time a carrier is purchasing 250 decal sets or more, they may opt to arrange for the decals to be sent by courier at their own expense.

IFTA registrants in Alberta may purchase additional decals throughout the year.

• Sign in to your TRACS account and select ‘Additional Decals’ from the ‘Account Actions’ menu.
• Complete the form and make your payment. Credit cards accepted are Visa or MasterCard. If paying by cheque, print the Payment Slip from the Confirmation page and include it with your cheque.
  • Or, see Making payments for other options.
• Once submitted, you may view the status of your request by selecting ‘Additional Decals’ from the menu.

For detailed instructions, watch this video.

Temporary permits

For situations where IFTA credentials are required urgently, TRA may issue a 30-day temporary permit for an additional fee of $10 per vehicle.

To request a temporary permit, send the following information to [email protected]:

• Account information
  • Existing registrants: include your account number (BIN) and legal name.
  • New carriers: complete the IFTA registration first. In your email, include the reference number from the confirmation page and the entity's legal name.
• Make, model and vehicle identification number (VIN) for each vehicle requiring a temporary permit.
• Explanation as to why a temporary permit is required.

Temporary permits will not be processed until payment has been received. Existing registrants can pay using a credit card in TRACS or see Making payments for other options.

Temporary permits can take 7 to 10 business days to process under normal circumstances. Contact the jurisdictions you will be traveling to if you need to travel immediately to arrange for a trip permit.

Once completed, TRA will email the temporary permit(s).

Renew or reactivate IFTA licence

The ‘Renew Annual Registration’ is available from October 15 to December 31. After December 31, carriers can reactivate their account in TRACS.

Carriers with an Alberta licence issued within the last 4 years can reactivate their account using ‘Reactivate Account.’

Carriers that had a licence more than 4 years ago must apply as a new registrant. See How to register.

Step 1. Complete the form in TRACS

• Select ‘Renew Annual Registration’ or ‘Reactivate Account’.
• Note: if you do not have a TRACS account, complete the TRACS Enrolment Request.

Step 2. Pay your renewal or reactivation fees

• The fees are $15 to renew or reactivate plus $10 per set of decals.
• Pay the fees using a credit card in TRACS or see Making payments for other options.

Step 3. Once approved

• You will be notified by email that your licence is available in your TRACS account.
• Decals will be mailed, unless 250 or more decal sets were ordered and courier was requested.

How to pay

TRACS has a ‘Make a credit card payment’ function to pay for certain fees, such as additional decals or temporary permits. Generally, carriers cannot use this function for paying balances owing from their IFTA quarterly return.

Visit Making payments for other options. You will need your account number to make a payment. The account number is located at the top of the page in your TRACS account. It will begin with a ‘4’ and must be 9-digits long (including the 4).

Authorize a representative

An individual with proper authorization for the business may consent to the release of confidential information to a specific firm or individual.

An individual with proper authorization for the business includes a(n):

• owner
• partner of a partnership
• corporate director
• trustee of an estate
• individual with delegated authority

Step 1. Fill out the Alberta Consent Form

• Complete the Alberta Consent (excluding Corporate Income Tax) Form (AT4931).
• See tip sheet: Representatives – How to Access TRACS.

Step 2. Submit the consent form

• Submit your completed consent form to TRA for review.

Step 3. Representative receives PIN (only for TRACS access)

• Once reviewed, TRA will review the consent form to ensure it is complete.
• TRA will issue a PIN number to the individual via secure email. TRACS access can only be provided to an individual.

The representative must enter the PIN and account number to access the TRACS account. See Step 2 and Step 3 of How to access TRACS for instructions.

File a waiver request

TRA recognizes there may be circumstances beyond a person’s control that prevent the person from complying with filing and payment obligations imposed under the Fuel Tax Act.

In such circumstances, TRA may exercise its discretion to waive or cancel all or any portion of penalties or interest that have been assessed.

Step 1. Log in to your TRACS account

• Select ‘Waiver request – Penalties & Interest’ from ‘Account Actions’.
• If you do not have access to your account in TRACS, complete the TRACS Enrolment Request.

Step 2. Complete and submit the waiver request

• Complete all required fields.

Step 3. Receive decision

• TRA will review your waiver request. We may contact you for additional information.
• You will receive the written decision by secure email.

IFTA quarterly tax rate

The quarterly tax rates will be updated and available in TRACS on the first day of the month following the quarter end. For example, the tax rates will be available April 1 for the quarter ending March 31.

If you require the tax rates prior to this date, see Tax Rate Matrix Downloads at the International Fuel Tax Organization’s website.

Publications, forms, videos

Legislation

• Fuel Tax Act and Regulations

Sign up for updates

Subscribe to TRA's publications and announcements

Contact

Connect with Tax and Revenue Administration:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-3044
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

Related

• Other programs administered by Tax and Revenue Administration
• Fuel tax rates
• International Fuel Tax Association, Inc.
• CRA fuel charge information
• What the new Canadian Fuel Charge means for interjurisdictional road carriers – CRA Notice, February 25, 2019