Interstate Fuel Tax Agreement

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. Air carriers travelling to jurisdictions other than IFTA must continue to comply with the fuel tax obligations of those countries. NOTE: Effective from April 2018, IFTA Inc. has incorporated hydrogen fuel and electricity types into the IFTA tax matrix. IFTA has several advantages for intergovernmental engines operating in two or more Member States or provinces. Under IFTA, you: If you are transporting goods for another person, a contract may make the carrier and not the owner of the vehicle responsible for the inter-judicial reporting and payment of fuel taxes. The treaty must be determined: IFTA member countries work in collaboration with the administration, collection and distribution of fuel taxes. IFTA registration information applies to travel to all 48 U.S. states and 10 Canadian provinces. There are several jurisdictions that are not IFTA members where IFTA registration information is not valid, including Alaska, Hawaii and the District of Columbia, the Northwest Territories, Nunavut and Yukon, as well as all states and the Federal District of Mexico. The agreement allows registered interjurisdictional carriers to obtain a licence issued by their main jurisdiction to notify and pay fuel taxes to a single jurisdiction. Carriers submit a quarterly declaration to their main jurisdiction covering fuel consumption and distance travelled in IFTA member countries for all their qualified vehicles. Even if the carrier has not operated or used taxable fuel for a specified period of time, a report must be filed.

The due dates for filing a tax return and paying are the last day in April, July, October and January (or if that day falls on a weekend or public holiday, the next business day). In your IFTA tax return, you state how much taxable fuel you bought and how far you travelled in each country. They will be weighed against the amounts due in other jurisdictions. If the net result is underpayment, send a payment to Ontario. If the net result is an overpayment, you will receive a refund from Ontario. 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.