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Ministry of Finance Tax Bulletin ISSUED: June 1990 REVISED: June 2014 Subscribe Bulletin MFT CT 008 gov.bc.ca/consumertaxes International Fuel Tax Agreement and Motive Fuel User Permits Motor Fuel
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The International Fuel Tax Agreement (IFTA) is an agreement between the lower 48 states of the United States and the Canadian provinces, which simplifies the reporting and payment of fuel taxes by interstate motor carriers.
Motor carriers who operate qualified motor vehicles in at least two member jurisdictions and have a gross vehicle weight rating (GVWR) or registered gross weight of over 26,000 pounds are required to file the International Fuel Tax Agreement (IFTA).
To fill out the international fuel tax agreement, motor carriers need to keep track of the mileage driven and fuel purchased in each member jurisdiction. This information is used to calculate the amount of fuel tax owed to each jurisdiction.
The purpose of the International Fuel Tax Agreement (IFTA) is to create a simplified system for motor carriers to report and pay fuel taxes. It eliminates the need for carriers to obtain multiple fuel tax permits and file separate tax returns in each jurisdiction they operate.
The international fuel tax agreement requires motor carriers to report the total mileage driven and total fuel purchased in each member jurisdiction. Carriers must also report the total taxable gallons of fuel consumed in each jurisdiction.
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