Motor carrier fuel/Highway use/Mileage tax - Virginia

IFTA fees

IFTA license, no fee

IFTA decals, $10 per vehicle

IFTA

Virginia will allow full credit for tax paid fuel purchases on the quarterly IFTA return. Any excess of tax paid over tax liability in any member jurisdiction will be credited in full to the licensee’s tax liability in other member jurisdictions or to the licensee’s account ledger as appropriate.

Under IFTA, a licensee will receive full credit or refund for tax-paid fuel used outside the jurisdiction where the fuel was purchased. The base jurisdiction will allow credits and issue refunds for all of its licensees on behalf of all member jurisdictions. Refunds to licensees will be made only when all tax liability, including audit assessments, have been satisfied to all member jurisdictions.

More information regarding credits or refunds under IFTA is included in the IFTA Agreement Manual.

PTO/Reefer fuel

The State of Virginia does allow for refunds on tax-paid fuel used in reefer or power-take-off equipment. While there is no refund permit required, carrier’s must file an application for refund, Form FMS216 “Application for Fuel Tax Refund.”

Refund requests must be requested within one year of purchase date, but they can also be filed monthly, quarterly, or semi-annually. Either original fuel receipts, or photocopies must be submitted with the refund request, plus a listing of off-highway vehicle equipment using the fuel.

When applying for a refund of tax paid on fuel used for power-take-off, a cover letter must be submitted explaining how the gallon amount was determined from hours. The state will usually send an investigator to the carrier’s location the first time a power-take-off refund is requested.