Tax and Revenue Administration Fuel Tax Act Information Circular IFTA-1R6

IFTA-1R6 / October 2006

ALBERTA FUEL TAX ACT INFORMATION CIRCULAR - IFTA:
INTERNATIONAL FUEL TAX AGREEMENT - OVERVIEW

1. The International Fuel Tax Agreement (IFTA) is an agreement among American states and Canadian provinces enabling uniform collection and distribution of fuel taxes paid by motor carriers transporting goods into, and out of, several jurisdictions.
   
   
2. IFTA membership allows the carrier to significantly reduce the paperwork and compliance burden for fuel tax reporting. An Alberta carrier licensed under IFTA submits only one quarterly fuel tax return to Alberta Finance, Tax and Revenue Administration (TRA), covering the distance travelled in all IFTA jurisdictions, rather than preparing separate fuel tax reports for each jurisdiction. TRA refunds or collects the net fuel tax for all member jurisdictions.
   
   
3. As of January 1, 1997, all relevant jurisdictions in Canada and the continental USA are members of IFTA except the following:
   

   Alaska, District of Columbia, Northwest Territories, Nunavut, and Yukon Territory.

   Carriers from the Yukon may register for IFTA in British Columbia, and carriers from the Northwest Territories may register in Alberta.

4. Beginning in 2006, any IFTA jurisdiction may license a Mexican carrier.
   
   
5. All carriers base-plated in Alberta or the Northwest Territories with qualified motor vehicles (as defined in Information Circular IFTA-2) travelling in more than one jurisdiction, should register under IFTA.
   
   
6. Qualified motor vehicles with a gross vehicle weight of more than 11,797 kilograms can only travel out of province if they are travelling under IFTA credentials or have obtained single trip fuel tax permits.