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International Fuel Tax Agreement (IFTA)
IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle means 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 11,794 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 11,794 kilograms (26,000 pounds) gross vehicle weight.
Qualified motor vehicle does not include recreational vehicles, or vehicles operating strictly in New Brunswick.
New Brunswick imposes a fuel tax on gasoline, special diesel, gasohol, propane, ethanol, methanol, E-85, M-85, A55, and biodiesel.
Photocopies of the IFTA Fuel Tax license 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 license 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.
Fees
IFTA Licence fees:
| Carrier Size (number of qualified vehicles) | IFTA Licence Fees |
|---|---|
| One | $25 |
| 2 to 4 | 100 |
| 5 to 9 | 200 |
| 10 to 24 | 400 |
| 25 to 49 | 750 |
| 50 or more | 1,500 |
The decal fee for two decals is $25.
Temporary decal permit
If New Brunswick approves an IFTA application, but is unable to issue the licence and decals before the carrier requires them, New Brunswick will issue a 30-day temporary decal permit.
Taxable vehicles
Under the Gasoline and Motive Fuel Tax Act, all commercial vehicles that are registered for 5500 kilograms or more, regardless of fuel type, must be registered and have an annual permit prior to operation in the province. This includes all inter-provincial vehicles, driveaway vehicles, wreckers, and charter buses, regardless of their home base. Inter-provincial driveaway operations involving a commercial vehicle are reportable, as is inter-provincial travel by a wrecker.
Vehicles based in New Brunswick and travelling solely within the province, are not required to file quarterly fuel reports. Should a New Brunswick based carrier have any vehicles that do travel outside the province, he/she would have to file fuel reports; however, those vehicles travelling solely within New Brunswick would not be included in that report.
Fuel tax rates
The provincial fuel tax rate is currently $0.1545 per litre for diesel fuel; $.1087 for regular unleaded gasoline; $.067 for propane, and $.169 for LNG and CNG. In addition, as noted at the beginning of the Canadian section, the Canadian federal government adds on an excise tax to each litre of fuel purchased, plus the 13% HST. Motive fuel marked and used for tax exempt purposes is exempt from taxation.
Source documents required
Trip report requirements
Under the IFTA recordkeeping requirements, carriers must maintain complete records of all fuel purchased, received and used plus detailed records on distance travelled on an individual vehicle basis. The driver’s trip records must contain 1) both taxable and nontaxable usage of fuel; 2) distance travelled for taxable and nontaxable uses; and 3) distance recaps for each vehicle for each jurisdiction in which the vehicle operated. Noncompliance with any recordkeeping requirements may be cause for revocation of motor carrier’s IFTA license.
Fuel receipt requirements
Under IFTA, motor carriers must maintain records of all fuel purchased, received and used, with separate totals compiled for each fuel type. Receipts or invoices must show:
- The date for each receipt of fuel.
- The name and address of person from whom the fuel was purchased or received.
- The type of fuel, and number of gallons or litres purchased.
- Price per gallon or litre, or total amount of sale.
- The vehicle or equipment number into which the fuel was placed.
- Purchaser’s name (in the case of a lessee/lessor agreement, receipts will be accepted in either name, provided a legal connection can be made to the reporting party).
Acceptable fuel receipts include an original invoice or credit card receipt or verifiable photocopy/microfilm/microfiche of an invoice. Receipts which have been altered or erased will not be accepted.
The Department of Finance will not accept the following invoices:
- invoices that show more than one location for the Retailer (particularly locations in different Provinces)
- invoices made out to cash
- invoices made out to persons other than the person or carrier filing the report.
Record retention requirements
All IFTA licensees must retain all records required to confirm information as listed on the quarterly tax returns. This information must be kept for a period of four (4) years from the due date of the return, or date filed, whichever is later. Records to be kept should include all driver’s trip report forms, original or credit card fuel purchase invoices to support fleet miles per gallon/kilometres per litres distributor bulk fuel invoices (if applicable), and/or any trip logs or other relevant documents to support miles driven and reported.
Reporting procedures
Forms used
The Department of Finance sends each registered fuel use tax consumer a preprinted quarterly tax report form just prior to the end of the reporting period. The report form is used to report all diesel, gasoline and LPG operated vehicles on the same form. In addition to the carrier’s name and address being preprinted, the report form also reflects the current quarterly fuel tax rate for the reporting period. Section B on the reverse side of the report form requires all fuel purchases to be listed, or in lieu of listing them, the consumer may attach photo copies of each invoice. It is not necessary to submit the original invoices, as they will not be returned to the carrier. Section A on the reverse side of the report form only need be completed if carrier has any bulk storage facilities within New Brunswick.
IFTA licensees will receive preprinted IFTA tax report forms from the Revenue Division each quarter. The International Fuel Tax Agreement return covers all reportable units for all IFTA member jurisdictions and includes separate schedules for each fuel type consumed by the carrier’s vehicles.
Filing period
All IFTA licensees must file the report on or before the last day of the month immediately following the close of the reporting period. The base jurisdiction shall assess interest on all delinquent taxes due each jurisdiction at the rate of 2 points greater than the average interest rate, rounded up, on 90-day Canadian Federal Treasury Bills during the first month of the preceding quarter. Repeated failure to comply with reporting and payment requirements as specified in the IFTA Agreement will be grounds for revocation of the IFTA licence.
Licensees whose operations equal less than 5,000 total annual miles or 8,000 kilometers in all IFTA member jurisdictions other than New Brunswick, may opt to report on an annual basis. This will be based upon filing history after filing at least four (4) quarterly reports. Should licensees choose to report annually, they must petition the Province of New Brunswick to do so.
Tax refunds or credits
When filing IFTA tax returns, refunds must be claimed for any overpayment of tax in a reporting quarter. Refunds to IFTA licensees will be made only when all tax liabilities, including assessments, have been satisfied to all member jurisdictions. Credits from one jurisdiction may be applied to taxes owed in another. Fuel purchase invoices are not required to be submitted to obtain a refund under IFTA, however, purchase invoices must be retained by licensees for audit purposes. Refunds may be withheld if the licensee is delinquent on fuel use taxes due to any member jurisdiction. A licensee will receive credit for tax paid on fuel used outside the jurisdiction where the fuel was purchased.
Fuel trip permits
Motor carriers wishing to operate a motor vehicle in New Brunswick on a one-time basis, may in lieu of applying for an annual permit for the vehicle, contact the various permitting services to request a five-day single trip permit. The temporary permit must be requested prior to entry into the province, and will cost a minimum of $50 or a tax amount based on the number of kilometres of proposed travel in the province, whichever is greater. The fee is computed at a cost of $0.08 per kilometer for diesel vehicles and $0.09 per kilometer for gasoline vehicles.
When received, the trip permit must be retained in the vehicle at all times during travel in the province, and is only valid if the travel for which it was issued takes place within seven-days of the date of issue of the single trip permit. When operating under a single trip permit, it is not necessary to report the vehicle’s kilometres or fuel purchases on a quarterly tax return. Should a carrier be required to purchase fuel within the province when operating under a trip permit, the Minister may authorize a rebate of tax paid on such fuel purchases.