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International Fuel Tax Agreement (IFTA)
The Northwest Territories is not a member of the International Fuel Tax Agreement.
Fuel Tax Reporting
Motor Carriers operating in the Northwest Territories currently have very few rules or regulations they must adhere to in order to operate a motor vehicle within the Territories. Motor vehicles must be registered and licensed under the Motor Vehicle Act before operating in the Northwest Territories, plus all vehicles must comply with the size and weight limitations. Regulations are applicable to both resident and non-resident operators. Motor Carriers are responsible for the payment of tax on petroleum products used or consumed in the Northwest Territories. A carrier may affect payment through a single trip permit or through a provision to report monthly consumption.
All carriers entering the Northwest Territories must purchase a single trip permit (fuel tax deposit) or be a monthly or quarterly reporter of imported fuel. Single trip permits may be paid by cash or on approved credit. The current rate of the single trip permit is $0.085 per kilometre of travel within the Northwest Territories. If a carrier purchases fuel in the Territories during the period authorized by the permit, the carrier may be eligible for a refund of all or a portion of the fuel tax deposit paid on that permit. Refund applications are available from the weigh scale or from Tax Administration.
A carrier granted permission to report consumption monthly or quarterly must file and remit appropriate taxes on the twentieth day following the filing month. Fuel tax credits and fuel tax refunds are provided to a carrier if the tax on the fuel purchased in the Northwest Territories exceeds the tax on fuel consumed in the Northwest Territories. Monthly return forms are provided by Tax Administration. Those carriers operating on a credit basis may be required to post a bond or a letter of guarantee.
Fuel Trip Permits
Fuel tax permits pertain to the fuel used for the operation of the vehicle only. Vehicles required to purchase this permit are commercial vehicles with a gross weight of 4,500 kilograms or more.
The tax applies to gas or diesel, but not to propane or natural gas powered vehicles.
If a carrier will only be making occasional trips into the Northwest Territories, the carrier may purchase a single trip permit at the port of entry, in lieu of a permanent permit. Operators of commercial vehicles with a gross weight of 4,500 kilograms or more are required to purchase temporary permits. The tax rate charged is $0.085 per kilometre from the Northwest Territories boundary to the destination point within the Northwest Territories and return.
Obtain fuel tax permits at weigh stations prior to entering the Northwest Territories, or by calling the weigh station (Enterprise or Inuvik) in the Northwest Territories, or by contacting the Northwest Territories’ 24-hour permit service at (877) 737-7786 or permits@shockware.com.
The fees are $0.085 per kilometre return from the Northwest Territories boundary to the destination in the Northwest Territories. No fee for fuel permit.