What is IFTA?

IFTA requires any inter-territorial carrier to report the amount of fuel consumed as well as the distance travelled per territory. Then, each member territory collaborates in the distribution of taxes payable on fuels.

Each inter-territorial vehicle adhering to the IFTA must be identified by one or more decals issued by the base jurisdiction. These decals serve as a license for the vehicle to travel in the territories concerned and to have the privilege of completing its declaration with a single territory.

IFTA permits grant carriers the right to operate in 10 Canadian provinces as well as 48 U.S. states.

Six territories are excluded from the IFTA agreement: Canada: Nunavut, Northwest Territories and Yukon Territory United States: District of Columbia, Hawaii and Alaska

In Quebec, the vehicles concerned by IFTA must be used exclusively or in part for commercial purposes or used to transport people or goods. In addition, these vehicles must also have the following characteristics:

• have two axles and a gross vehicle weight rating (GVWR) or registered gross vehicle weight rating of more than 11,797 kilograms, or 26,000 pounds
• have three or more axles (regardless of GVWR)
• be used with another vehicle and that their combined GVWR or registered GVWR exceeds 11,797 kilograms, or 26,000 pounds. (1)

A quarterly IFTA tax return report is required by the carrier. Each report must present data on the fuel consumed in each IFTA member jurisdiction and non-member jurisdiction, as well as all distances travelled in each of these territories.

Two methods of reporting are accepted:

• Via the tax return form (paper or web) offered by Revenu Quebec
• Via one of the authorized computer softwares approved by Revenu Quebec

The carrier must also keep all IFTA records and supporting documents for a period of six years and make it available to any IFTA member province or state.

Note: All inter-territorial carriers must produce an IFTA report even if they have not carried out any transport activity outside their base territory over the course of a given quarter.

The IFTA report requires a precise set of information on vehicle movements. Revenue Quebec requires each report to provide the following distance data:

Via a vehicle-tracking system

• the original GPS or other location data for the vehicle;
• the date and time of each GPS or other system reading, at intervals sufficient to validate the total distance traveled in each jurisdiction;
• the location of each GPS or other system reading;
• the beginning and ending reading from an odometer, hubodometer, engine control module or similar device for the quarter to which the records pertain;
• the distance calculated between each GPS or other system reading;
• the route travelled;
• the total distance travelled;
• the distance travelled in each jurisdiction;
• the vehicle identification number or unit number.

Other than by a vehicle-tracking system

• the start and end date;
• the origin and destination;
• the route travelled;
• the beginning and ending reading from an odometer, hubodometer, engine control module or similar device;
• the total distance;
• the distance travelled in each jurisdiction;
• the vehicle identification number or unit number.

Fuel purchase data

• The IFTA statement should include the following information on fuel purchases, receipts and use:
• the date of the purchase;
• the quantity of fuel purchased;
• the type of fuel purchased;
• the price per gallon or liter or the total price;
• the seller's name and address;
• the purchaser's name (if the fuel is put into a leased vehicle, both the lessor's and the lessee's names are acceptable, so long as a legal connection between the purchaser and the licensee can be established);
• the identification of the qualified motor vehicle into which the fuel was placed. (2)