If you operate a commercial truck or bus in more than one province or state, you are an interjurisdictional carrier and you should know about the International Fuel Tax Agreement (IFTA).

What is IFTA?

IFTA is a cooperative agreement among the Canadian provinces and most American states to make it easier for interjurisdictional carriers to report and pay taxes on the motor fuels they use.

The agreement allows registered interjurisdictional carriers to get one licence, issued by their base jurisdiction, to report and pay motor fuel taxes to a single jurisdiction.

Under IFTA, interjurisdictional carriers report the amount of motor fuel consumed and the distance travelled in each jurisdiction. Member jurisdictions work together to track, collect and share the taxes payable on motor fuels such as gasoline, diesel, propane, gasohol, methanol, ethanol, natural gas, biodiesel, hydrogen and electricity.

Vehicles registered under IFTA display identifying decals issued by their home jurisdiction.

IFTA credentials are valid for travel in the 10 provinces in Canada and 48 states in the U.S.

Six jurisdictions are not IFTA members and IFTA credentials are not valid for travel there:

  • Canada: Northwest Territories, Nunavut, Yukon Territory
  • United States: Alaska, Hawaii, District of Columbia.

Effective January 1, 2024, IFTA registration, reporting, and audit requirements apply to Ontario-based interjurisdictional carriers (for example, long-haul truckers) who use alternative fuels.

Who can register for IFTA?

You can register for IFTA with Ontario if:

  1. your commercial vehicle is a motor vehicle used for business purposes and:
    • has two axles and a gross vehicle weight or registered gross vehicle weight of more than 11,797 kg (26,000 pounds)
    • three or more axles regardless of weight, or
    • a total registered gross vehicle weight of more than 11,797 kg (26,000 pounds) when used in combination with a trailer.
  2. you operate the vehicle from a place of business in Ontario
  3. you keep the vehicle records in Ontario or will make the records available to the Ontario Ministry of Finance
  4. the vehicle travels in Ontario and at least one other jurisdiction.

Registering gives you the benefit of:

  • having one IFTA licence to allow travel in all member jurisdictions, and
  • dealing with one jurisdiction for the reporting and payment of motor fuel taxes.

A recreational vehicle such as a motor home or a pickup with a camper is not considered a qualified motor vehicle when used exclusively for personal pleasure. Vehicles used in connection with a business operation are not considered recreational.

Cost

In Ontario a decal fee of $10 is charged for each set of IFTA decals that you order.

How to register

To receive your IFTA licence and decals:

Step 1: Complete the Application for IFTA Registration

Download: Application for IFTA Registration

Step 2: Pay the required decal fee of $10 per set

Payments must be made either by cheque or moneyorder payable to the Minister of Finance. Payments cannot be made at a financial institution.

Step 3: Mail your completed application and payment in an envelope to:

Ministry of Finance IFTA Program 
33 King St. West
PO Box 625
Oshawa ON, Canada L1H 8H9

Help completing the IFTA registration application

Licence and decals: valid for one year

After registering, the Ministry of Finance will issue a single IFTA licence for your fleet of qualified vehicles. You will also receive two decals for each qualified motor vehicle. The licence and the decals are valid for one year from January 1st to December 31st, and need to be renewed each year.

Prior to the end of the year, a renewal application will be issued automatically to eligible IFTA licensees.

More about decals

Rules to follow

  1. Affix the decals to the specified location.
  2. Carry a photocopy of the IFTA licence in each of your qualified motor vehicles.
  3. File all IFTA quarterly tax returns and pay any motor fuel taxes by the due date.
  4. Keep all records to support the information reported on your IFTA tax return in case you are selected for a tax audit.

Renewals and additional decals

Your IFTA licence and decals must be renewed each year before December 31. If your account is in good standing, you will receive the Annual Renewal Request for IFTA Decals form at least 30 days before your IFTA licence expires. .

Additional decals can be purchased throughout the year.

Online

You can complete your annual license renewal and order additional decals through your ONT-TAXS online account.

Step 1: Create an ONT-TAXS online account or log in using your existing credentials

Log in to ONT-TAXS online

Step 2: Complete the Annual Renewal Request for IFTA Decals or Request for Additional Decals

Step 3: Submit your request

Step 4: Make your payment online

Once your request is processed, the renewal package (i.e., IFTA licence and decals) or additional decals will be mailed to you.

Mail

You can also submit your Annual Renewal Request for IFTA Decals or Request for Additional Decals by mail.

More about annual licence renewal.

How to file a quarterly IFTA tax return

As an IFTA licensee, you report how much tax-paid fuel you purchased and the distance travelled in each jurisdiction through your quarterly IFTA tax return.

You will balance overpayments in one jurisdiction against amounts owed in other jurisdictions. If the net result is an underpayment, you will send one payment to Ontario. If the net result is an overpayment, you will receive one refund from Ontario.

Online

Step 1: Create an ONT-TAXS online account or log in using your existing credentials

Log in to ONT-TAXS online

Step 2: Complete your IFTA return

  • You can upload your IFTA tax schedule information using Excel when filing your return online. Instructions about how to upload your information using Excel are available in ONT-TAXS online.

Step 3: Submit your IFTA return

  • Submit the return and print the confirmation page for your records.

Step 4: Make a payment online if you owe tax

  • If you do not file your IFTA tax return or pay any taxes owing you may be charged interest and penalty, and your IFTA licence may be cancelled.

Mail

You can also submit your IFTA return to the Ministry of Finance by mail. The ministry will mail an IFTA tax return to you at least 30 days before each due date.

Your return must be postmarked, or hand delivered by the due date, which is shown on the top of every return.

Read on: how to complete your International Fuel Tax Agreement tax return and schedule

Direct deposit

The Ontario Ministry of Finance offers a direct deposit service where payments are deposited directly into your account at the bank of your choice.

Download: Direct Deposit Request / Direct Deposit Authorization

Due dates

The reporting quarters and due dates are:

IFTA Reporting QuarterReturn Due Date
1st Quarter - January to MarchApril 30
2nd Quarter - April to JuneJuly 31
3rd Quarter - July to SeptemberOctober 31
4th Quarter - October to DecemberJanuary 31

The IFTA Tax Rate Matrix is the official source for all IFTA fuel tax rates. To view the IFTA Tax Rate Matrix, please visit the International Fuel Tax Association’s website.

Cancel an IFTA account

The Minister of Finance will cancel an IFTA licence at your request if:

  • you have filed all IFTA tax returns, paid all taxes, penalties and interest due, and
  • you are no longer operating qualified motor vehicles or you prefer to use single trip permits.

To cancel your account, check off the 'Cancel IFTA licence' section on your latest IFTA tax return and enter the last date of business. You can also write to the Ministry of Finance and request your account be cancelled. In your letter, state the last day of business.

You are required to:

  • destroy the original licence and any copies, and all decals, and
  • keep all records to support your IFTA tax returns for four years from the return due date or filing date, whichever is later.

The ministry will notify all IFTA member jurisdictions of your cancellation.

Revoke an IFTA account

The Minister of Finance may revoke your IFTA licence if you fail to:

  • file complete IFTA tax returns on time
  • pay taxes in full, or
  • follow the ministry’s record-keeping requirements.

In the absence of a valid IFTA licence, qualified vehicles must obtain separate single trip permits prior to any interjurisdictional travel.

Re-activate an IFTA account

Before your IFTA licence can be re-activated, the Minister of Finance may require security. You will be informed of any security requirement once you have:

  • filed all outstanding IFTA tax returns
  • paid whatever you owe on your account
  • completed a new IFTA application form
  • paid for the decals you need for your vehicles, and
  • sent a letter asking for your account to be re-activated, stating the account number and the first day of business.

More about licensing

Transporting goods for someone else

When you transport goods for someone else, a contract may hold the carrier and not the vehicle owner responsible for interjurisdictional reporting and payment of fuel taxes. The contract needs to identify:

  • the start and end dates of the agreement
  • who is responsible, the carrier or the vehicle owner, for reporting and paying the motor fuel tax.

The responsible party identified in the contract should obtain the IFTA licence.

More about contracts

Single trip permit

If you do not have a valid IFTA licence and occasionally travel into other jurisdictions, you can buy a single trip permit. The permit can be purchased on a trip-by-trip basis from authorized permit agents.

Find a single trip permit agency

A single trip permit allows qualified vehicles conditional travel in another jurisdiction. The permit is valid for one vehicle making a single journey into another jurisdiction for a pre-determined distance and time period. Single trip permits may also include other fees in addition to the fuel tax.

Enforcement

Driving marked vehicles with emergency lights, uniformed inspectors monitor truck traffic throughout the province. Inspectors have the authority to stop and detain commercial motor vehicles for inspection purposes. They ensure compliance by:

  • Inspecting for valid IFTA registration documents.
  • Checking the carriers account status with its base jurisdiction.
  • Taking samples from fuel tanks of diesel vehicles to identify operators who may be avoiding payment of fuel tax, by using coloured fuel (i.e., tax exempt furnace oil), to power their vehicle. Any presence of red dye in diesel fuel disqualifies that product from use in a motor vehicle.
  • Checking for other potential violations in the interest of public safety.

A person committing an offence relating to the improper use of coloured fuel in Ontario is liable to a fine and related charges on first offence of $465. Fines of up to $1 million or imprisonment for up to two years are possible for other offences under the Fuel Tax Act, such as tampering with coloured fuel. Offenders will also be audited and may be assessed tax, penalties and interest.

International Registration Plan

All interjurisdictional carrier vehicles weighing more than 11,793 kg should also register under the International Registration Plan. This plan allows for the distribution of registration fees for commercial motor vehicles traveling through more than one member province or state.

Read on: International Registration Plan

Contact us

  • Email: commodity.tax@ontario.ca
  • Telephone toll free: 1 866 ONT-TAXS (1 866 668-8297)
  • Teletypewriter (TTY): 1 800 263-7776
  • Mail: Ministry of Finance IFTA Program, 33 King Street West, PO Box 625, Oshawa ON L1H 8H9

Forms

MORE FORMS 

Publications

MORE PUBLICATIONS