Simply put, the IFTA works as a “pay numbers now or later” system. When commercial vehicles purchase fuel, all taxes paid on fuel are credited to the licensee`s account. At the end of the business quarter, the licensee finalizes his fuel tax return, lists all miles flowed in all participating countries and lists all gallons purchased. Then, the average fuel power is applied to miles travelled to determine each country`s tax debt. Three states – Kentucky, New Mexico and New York – have weight taxes, in addition to the normal fuel tax. Oregon has only a weight tax. Each amount of fuel taxes (or refunds) due is then paid (or obtained) to the basic jurisdiction that issued the licence. The Member States then take care of the corresponding transfer of funds. Audits are carried out only by the base state and fuel obligations are rarely required.
If you are transporting goods for another person, a contract may make the carrier, not the owner of the vehicle, responsible for inter-judicial notification and payment of fuel taxes. The contract must identify: NOTE: Effective April 2018, IFTA Inc. has incorporated hydrogen fuel and electric fuel types into the IFTA tax matrix. Note: Licensed vehicles with IFTA credentials, including farm-registered vehicles, may only use single fuel. The use of marked fuel is not permitted. IFTA is an agreement between the United States (excluding Alaska and Hawaii) and the Canadian provinces (excluding Northwestern Territories, Nunavut and Yukon) to facilitate the communication of fuels used by airlines operating in more than one country. IFTA is an agreement between U.S. states and provinces in Canada that simplifies the notification of fuel consumption taxes by intergovernmental transportation companies operating in two or more member states or provinces.
is a cooperation agreement between Canadian provinces and most U.S. states to allow inter-judicial air carriers to report the fuels they use and pay taxes. If you are an Alberta carrier with qualified vehicles that are not registered for IFTA, your vehicles cannot travel to other IFTA countries without purchasing a travel authorization for fuel tax purposes. Read our most frequently asked questions about biodiesel and renewable diesel fuel to find out how to report biodiesel fuel via your IFTA quarterly rate of return.