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International fuel tax agreement (IFTA)
IFTA registration in Alberta is available to those motor carriers base-plated in Alberta and the Northwest Territories. Any carrier that is based in other non-IFTA jurisdictions will not be allowed to register for Alberta IFTA credentials.
IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and:
- Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 11,797 kilograms (26,000 pounds); or
- Having three or more axles regardless of weight; or
- Is used in combination, when the weight of such combination exceeds 11,797 kilograms (26,000 pounds) gross vehicle weight.
A qualified motor vehicle does not include recreational vehicles.
Alberta imposes a fuel tax on gasoline, special diesel, gasohol, propane, ethanol, methanol, E-85, M-85, A55, and biodiesel.
Photocopies of the IFTA licence must be placed in each qualified vehicle, and the decals put on the sides of trucks and tractors on the lower, rear exterior of the cab. The licence and decals are valid for one year (January 1 through December 31) and must be renewed annually. A fuel tax bond is not required as long as tax reports are filed and fuel taxes owing are paid on time. Failure to produce a copy of the current year’s licence and display the decals may result in the vehicle operator being subject to a citation, and having to purchase a temporary trip permit.
Alberta allows its IFTA licensees to have multiple fleets based in more than one IFTA jurisdiction; however, special permission is required prior to reporting all fleets on one IFTA return. Carriers should contact Alberta Finance, Tax and Revenue Administration (TRA) for guidance.
If a licensee’s IFTA vehicles travel less than 8,000 kilometres per year (based on previous filings) in all member jurisdictions excluding Alberta, Alberta may allow annual reporting instead of quarterly reporting. Contact TRA for guidance.
Fees
| IFTA Licence | $15 (renewed annually) |
| IFTA Decals | $10 per set of decals (renewed annually) |
Temporary decal permits
If carrier already registered for IFTA in Alberta, but needs to add a vehicle to the IFTA fleet, a temporary decal permit is available. There is a $10 per vehicle fee and the permit expires in 30 days. The temporary credential must be carried in the vehicle along with a copy of the carrier’s Alberta IFTA licence. The carrier must replace the temporary credential with permanent IFTA decals as soon as possible.
While using a temporary decal permit, all operations are reportable and included in total and taxable miles on the quarterly reports.
Fuel tax rates
The provincial fuel tax is currently charged at the rate of $.09 per litre for diesel fuel; $.09 per litre for gasoline; $.0855 for gasohol; and $.065 for propane. Also, as noted at the beginning of the Canadian section, the Canadian federal government charges the 5% GST plus an excise tax per litre on diesel fuel and gasoline.
The Alberta Fuel Tax (AFT) of $.09 per litre applies to fuel used in transportation, whether by rail, road, air or water. It is collected on sales of gasoline and diesel fuel (all grades used in internal combustion engines). Fuel tax is collected on the sale of aviation gasoline ($.015 per litre) and propane sold for motive purposes ($.065 per litre). It does not apply to sales of propane, (non-motive propane), methanol, ethanol or natural gas. Where gasoline or diesel fuel is blended with other fuels, the tax is applied in proportion to the taxable fuel content.
Fuel tax refunds
No fuel tax rebates/refunds are available.
Fuel trip permits
If a carrier will be operating a qualified vehicle into Alberta but does not have an IFTA licence, the carrier must obtain a single trip fuel permit to enter the province.
Carriers may obtain a single trip permit by calling the permit office at (403) 342-7138 or (800) 662-7138.