and Revenue Administration
Fuel Tax Agreement ( IFTA)
Information Circular IFTA-2R8
||February 13, 2012
||Alberta Treasury Board and Finance, Tax
and Revenue Administration
|For more information:
IFTA-2R8 / February
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
IFTA Fuel Tax Licence and Decals
- 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).
- 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.
- 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
- 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
Process and Eligibility Rules
- 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
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.
- 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.
- Carriers renewing their IFTA licence and decals have
a two-month grace period (January and February) to display the
renewal IFTA licence and decals.
Rule for Farm-plated Trucks
- 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".
of Qualified Motor Vehicle
- 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.
Additional and Replacement Credentials
- 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.
- 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.
- 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
for Multiple Fleets
- 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.
- 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
for Intrajurisdictional Travel
- 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.
and Reporting by Lessors/Lessees and Household Goods Carriers
- 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
- Where a lessor is regularly
engaged in leasing or renting vehicles without
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.
- Where the lessor is an
a) for short term/trip leases
of 29 days or less, the lessor will report and pay the fuel
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
- 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
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
TRA does not require the
filing of lease agreements, but such lease agreements must be
made available upon request.
and Remittance Requirements
- 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:
|January - March
April - June
| July 31
July - September
| October 31
October - December
| January 31
- 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.
- 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.
- 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).
- 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.
- 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.
- 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.