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Tax and Revenue Administration
International Fuel Tax Agreement ( IFTA)
Information Circular IFTA-2R
8


Revised: February 13, 2012
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

IFTA-2R8 / February 2012

ALBERTA FUEL TAX ACT INFORMATION CIRCULAR - IFTA:
ALBERTA IFTA LICENSING AND REPORTING REQUIREMENTS

NOTE: This information circular is intended to explain the International Fuel Tax Agreement Articles of Agreement and relevant legislation, and to provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in the interpretation between this information circular and the articles of agreement or legislation, the articles of agreement and legislation take precedence.

This information circular discusses the following topics:

 

Alberta IFTA Fuel Tax Licence and Decals

  1. The International Fuel Tax Agreement (IFTA) program is a voluntary program. Carriers registered in Alberta under the IFTA are issued credentials by Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA).

  2. The credentials (licence and vehicle decals) signify to enforcement officials in other IFTA jurisdictions that the carrier reports distances travelled and fuel purchased in IFTA jurisdictions on Alberta form AT2059, "IFTA Quarterly Tax Return". Enforcement officials then do not require the carrier to pay a single-trip permit fee for fuel tax. 

  3. IFTA credentials expire on December 31 of each calendar year. An Alberta IFTA registration renewal form is sent to the carrier in the autumn of each year. The new credentials are issued in advance of the new calendar year; however, carriers are not to attach the new decals to their vehicles until December.

  4. Each carrier registered under IFTA in Alberta purchases one Alberta IFTA fuel tax licence. The licence is not vehicle-specific and a clear copy of it must be placed in each qualified motor vehicle operated by the carrier (see below for the definition of qualified motor vehicle). The carrier buys one set of two Alberta IFTA decals for each qualified motor vehicle. The prenumbered decals are to be attached to the lower, rear exterior of each side of the cab.  Decals are designed to last for a full year. However, if problems such as fading occur, contact TRA for replacements. (See below for more information about additional and replacement decals).

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Application Process and Eligibility Rules

  1. To receive Alberta IFTA credentials, carriers apply to TRA by completing form AT2054, "IFTA Registration" and enclosing applicable registration fees. A carrier may be registered for IFTA in Alberta if it:
a) operates one or more qualified motor vehicles base-plated in Alberta or the Northwest Territories,

b) travels to at least one other IFTA jurisdiction,

c) allocates some income to Alberta for income tax purposes, and

d) does not have an amount owing or an unfiled IFTA return for a prior reporting period.

Annual Fees

  1. Effective January 1, 2007, the applicable registration fees for each carrier are:
a) an annual registration fee of $15 for the Alberta IFTA fuel tax licence, and

b) an annual decal fee of $10 per set of two decals per qualified motor vehicle.

The applicable registration and decal fees must be submitted with the carrier’s annual registration application.

Grace Period

  1. Carriers renewing their IFTA licence and decals have a two-month grace period (January and February) to display the renewal IFTA licence and decals.

Special Rule for Farm-plated Trucks

  1. To be approved for IFTA credentials, qualified farm-plated motor vehicles travelling in IFTA jurisdictions can use only clear diesel fuel. Refunds of tax on clear diesel fuel used in Alberta and refunds of Alberta Farm Fuel Distribution Allowance (AFFDA) benefits on clear diesel used in any jurisdiction can be obtained by filing a Farmer Benefit Application AT4755, "Farm Benefit Application". This application and the related form AT4756, "Farmer Benefit Application Schedule 1, Tax-Paid Clear or Marked Diesel Fuel Used in Eligible Farming Operations", should be submitted with form AT2059, "IFTA Quarterly Tax Return".

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Definition of Qualified Motor Vehicle

  1. Alberta’s IFTA credentials may be carried and displayed on a qualified motor vehicle only. This is a motor vehicle used, designed, or maintained for transportation of persons or property and meeting one of the following size and weight requirements:

    a) two axles and a gross vehicle weight or registered gross vehicle weight exceeding 11,797 kilograms (26,000 lbs.); or

    b) three or more axles regardless of weight; or

    c) if used in combination with a trailer, a combined weight that exceeds 11,797 kilograms (26,000 lbs.).

    A qualified motor vehicle does not include a recreational vehicle.

Temporary, Additional and Replacement Credentials

  1. IFTA licensees registered in Alberta may purchase additional decals for additions to the fleet, or contracting/leasing arrangements.  IFTA licensees should reconcile decals to their vehicles.

    Carriers are required to request replacement decals when there is a problem with decal quality. For replacement decals to be issued, the carrier must provide TRA with details of the problem.
     

    Decals can be obtained from the TRA office.  Please allow sufficient time for processing and mailing.

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  1. If a licensee requires IFTA credentials immediately, contact TRA, at 780-427-9412 or  toll-free within Alberta by dialling 310-0000, then 780-427-9412 to apply for temporary credentials. Information is required about the make, model and vehicle identification number (VIN) of each vehicle that would normally carry decals. The licensee will be faxed temporary IFTA credentials to be used until receipt of the mailed IFTA decals. A $10 fee per vehicle is charged for temporary credentials.

  2. The temporary IFTA credentials and a copy of the licensee's Alberta IFTA fuel tax licence are to be carried in the vehicle named in the certificate. The temporary credential expires in 30 days and must be replaced by the IFTA decals as soon as possible. Enforcement agencies in other jurisdictions will charge a trip permit fee for fuel tax if the vehicle operator does not display IFTA decals or carry a temporary IFTA credential together with an Alberta IFTA fuel tax licence.

Reporting for Multiple Fleets

  1. An Alberta IFTA licensee may have multiple fleets base-plated in more than one IFTA jurisdiction. Special permission is required for reporting the distance travelled by all the carrier's fleets on one IFTA Quarterly Tax Return. A letter requesting permission should be enclosed with the registration form. TRA will then contact the other IFTA jurisdiction(s) and arrange approval for a consolidated return. 

  2. An Alberta IFTA licensee is permitted to include in its Alberta IFTA Fuel Tax Return the distance travelled by its fleets base-plated in non-IFTA jurisdictions. Alberta IFTA credentials (fuel tax licence and decals) may be requested by the licensee for each qualified motor vehicle base-plated in non-IFTA jurisdictions.

Reporting for Intrajurisdictional Travel

  1. To include qualified motor vehicles operated exclusively within a jurisdiction in its fleet, the licensee may obtain IFTA decals for the interjurisdictional vehicles. Once decaled, the intrajurisdictional vehicles are required to report all fuel purchases and distance travelled, whether or not the vehicles left the jurisdiction, until the decals expire or the vehicles are no longer under the licensee's authority.

Licensing and Reporting by Lessors/Lessees and Household Goods Carriers

  1. A lessor who is regularly engaged in leasing or renting motor vehicles without drivers obtain an IFTA fuel tax licence by filing an application and receiving approval from the lessor’s base jurisdiction.

  2. Where a lessor is regularly engaged in leasing or renting vehicles without drivers:

a) for short term/trip leases of 29 days or less, the lessor will report and pay the fuel tax unless:

    (i) there is a written lease or rental contract designating the lessee as the party responsible for reporting and paying the fuel tax; and

    (ii) the lessor has a copy of the lessee’s IFTA fuel tax licence, valid for the term of the lease/rental.

b) Where the lease/rental period exceeds 29 days, the lessee and lessor may designate which party will report and pay the fuel tax.

  1. Where the lessor is an independent contractor:

    a) for short term/trip leases of 29 days or less, the lessor will report and pay the fuel tax.

    b) for leases exceeding 29 days, the lessee and lessor may designate which party will report and pay the fuel tax. Where there is no written lease or where the lease is silent, the lessee will be responsible for reporting and paying the fuel tax. If the lessee is responsible for reporting and paying fuel tax, the base jurisdiction will be the base jurisdiction of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes.

  2. If the lessee is a household goods carrier, the party liable for reporting and paying fuel tax will be:

    a) the lessee, if the qualified motor vehicle is being operated under the lessee’s jurisdictional operating authority, or

    b) the lessor, if the qualified motor vehicle is being operated under the lessor’s jurisdictional operating authority.

    In either case, the base jurisdiction of the vehicle will be the base jurisdiction of the party liable for reporting and paying the fuel tax regardless of the jurisdiction in which the vehicle is registered for vehicle registration purposes.

  3. TRA does not require the filing of lease agreements, but such lease agreements must be made available upon request.

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Reporting and Remittance Requirements

  1. An Alberta IFTA licensee must submit to TRA form AT2059, "IFTA Quarterly Tax Return" and remittance, by the last day of the month following a quarterly reporting period. If the due date falls on a weekend or a government holiday, the return and remittance must be submitted the next business day. The due dates are as follows:

    Reporting Quarter  Due Date
    January - March

    April 30

    April - June 

    July 31

    July - September 

    October 31

    October - December 

    January 31
  1. Taxes may be remitted by any of the following methods:

    a) through internet payment services provided by major financial institutions in Canada. For further details on this option, contact your financial institution or call TRA at the above number;

    b) mailed, delivered by courier or hand-delivered to TRA. Remittances should be made payable to the Government of Alberta and accompanied by a Remittance Advice. Hand-delivered payments should be taken to the Alberta Treasury Board and Finance, Tax and Revenue Administration office, between the hours of 8:15 a.m. and 4:30 p.m., Monday to Friday, except government holidays;

    c) at most financial institutions in Canada, if accompanied by an original Remittance Advice; or

    d) by wire transfer. For more information on this option, contact TRA at 780-427-3044 or toll-free within Alberta by dialling 310-0000, then 780-427-3044.

  2. The return and remittance are considered received and filed on the date stamped on the envelope by the U.S. Postal Service, Canada Post or the national postal service of the United Mexican States, or the date they were mailed with satisfactory proof of the date of mailing. Hand-delivered returns or remittances shall be considered filed on the date they were delivered to TRA.

  3. A return must be submitted for each quarter, even if the licensee did not travel in IFTA jurisdictions during the reporting period, or the distance travelled in IFTA jurisdictions was reported by another licensee (e.g., under a lease/contract arrangement). A licensee who does not travel outside of Alberta during the reporting period is to file a return indicating the distance travelled and fuel purchased in Alberta. If a licensee submits a "nil" return, the licensee should indicate on the return that either the licensee did not travel in IFTA jurisdictions, or the distance travelled was reported by another licensee (include name of the other licensee).

  4. A return may be submitted on Tax and Revenue Administration Client Self Service (TRACS, the web portal for licensees to easily access their accounts and complete and submit their quarterly returns). The return is considered filed on the date it is submitted on TRACS.  For more information about TRACS and how to register to be a TRACS user, please refer to the TRACS Overview on the TRA website.

  5. A written request for special permission is required if a licensee wants to submit the tax return and remittance annually. Permission may be given if the licensee’s IFTA vehicles travel less than 8,000 kilometres per year (based on previous filing history) in all member jurisdictions excluding Alberta. The annual tax return is due on the last day of the month immediately following the close of the annual period.

  6. If the responsible IFTA licence holder does not file form AT2059, "IFTA Quarterly Tax Return" and pay any taxes owing, the licensee's Alberta IFTA credentials may be revoked. Enforcement agencies in all IFTA jurisdictions are then advised of the licensee's changed status.

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