Without a system to track fuel use across multiple jurisdictions, managing taxes can quickly become overwhelming.
That’s why IFTA registration exists.
The International Fuel Tax Agreement (IFTA) simplifies reporting by allowing truckers and fleet owners to file a single tax report instead of separate filings for each state or province, ensuring that taxes are fairly distributed while reducing administrative hassle.
To stay compliant and avoid penalties, understanding IFTA is essential.
What Is International Fuel Tax Agreement (IFTA)?
The International Fuel Tax Agreement (IFTA) is a system that makes fuel tax reporting easier for truckers who drive across state or provincial borders. Instead of filing separate tax reports in every place you operate, IFTA lets you file one quarterly report through your home state or province.
When you buy fuel, taxes are paid at the pump. But because you may drive in multiple regions, IFTA ensures that each state or province gets its fair share of those taxes based on where you actually use the fuel.
To stay compliant, truckers track their mileage and fuel purchases in each jurisdiction and report them every quarter. Their home state or province then calculates the fuel taxes owed and distributes them to the proper regions.
Benefits of an IFTA Membership
Here’s how an IFTA membership helps truckers and fleet owners stay organized and compliant:
1. One Quarterly Fuel Tax Return
Instead of juggling multiple tax filings for every state or province where you operate, IFTA lets you file just one fuel tax return every quarter through your home jurisdiction. Everything is reported in one place, making it easier to manage fuel taxes while reducing paperwork and administrative work.
2. Covers All IFTA Jurisdictions
Since truckers drive through different states and provinces, fuel taxes need to be allocated properly. With IFTA, your single tax return accounts for all the miles you’ve traveled in IFTA member jurisdictions, meaning you don’t have to worry about reporting separately for each region. It’s all tracked and reported in one system, saving time and effort.
3. Simplified Tax Payment and Refund Process
Filing fuel taxes is one thing, figuring out who you owe and who owes you is another. Without IFTA, you’d have to send payments to multiple jurisdictions and chase down refunds manually. But with IFTA, your home state or province handles the calculations, collects what you owe, refunds any overpayments, and distributes taxes to the right jurisdictions. You simply file your report, and the system takes care of the rest.
IFTA makes fuel tax reporting easier, more efficient, and less stressful for truckers who cross state and provincial borders.
Who Can Register for IFTA in Alberta?
To qualify for IFTA registration in Alberta, a carrier must meet the following requirements:
- Operate at least one qualified motor vehicle that is base-plated in Alberta or the Northwest Territories.
- Travel outside of Alberta into at least one other IFTA jurisdiction.
- Allocate a portion of their income to Alberta for income tax purposes.
- Have no outstanding balances or unfiled IFTA returns from previous reporting periods.
If all these conditions are met, the carrier is eligible to apply for IFTA registration and simplify their fuel tax reporting process.
What Is a Qualified Motor Vehicle Under IFTA?
A qualified motor vehicle under IFTA is any vehicle used, designed, or maintained for transporting people or property that meets at least one of the following criteria:
- Has two axles and a gross vehicle weight (GVW) or registered GVW over 11,797 kg (26,000 lbs.).
- Has three or more axles, regardless of weight.
- Operates as part of a combination (such as a truck and trailer) where the combined weight exceeds 11,797 kg (26,000 lbs.).
These vehicles must be registered under IFTA if they operate in multiple jurisdictions.
Important Note: Recreational vehicles, such as motorhomes or travel trailers, do not qualify, even if they meet the weight or axle requirements, as they are not used for commercial purposes.
What Happens If You Don’t Register for IFTA?
If you are an Alberta carrier and your qualified motor vehicles are not registered under IFTA, you cannot travel into other IFTA jurisdictions unless you purchase a trip permit for fuel tax purposes. Without this permit, your vehicle will not be legally allowed to operate outside of Alberta.
In addition, if your vehicle is not part of a Prorate licensing plan, you will also need to purchase a trip permit for licensing purposes. Since each jurisdiction has different permit requirements, you must contact the region you plan to enter to find out how to obtain the necessary permits.
Without IFTA registration or the proper permits, you risk fines, delays, and compliance issues, which can disrupt your operations and increase costs.
How Much Does IFTA Registration Cost?
Carriers must pay the following fees when registering, renewing, or reactivating their IFTA account:
- Annual registration fee: $15 per carrier.
- Annual decal fee: $10 per set (each qualified motor vehicle requires two decals).
Both fees must be included with the initial application or annual renewal to ensure the registration is processed without delays.
How to Register for IFTA in Alberta
Follow these steps to complete your registration and receive your licence and decals:
Step 1: Sign in or Create an Alberta.ca Account
To start, you need to sign in to your Alberta.ca Account. If you don’t have one, create a basic Alberta.ca Account to access the registration system.
Step 2: Select ‘Program Registration’ and Choose IFTA
Once logged in, go to ‘Program Registration’ and select ‘IFTA’. Fill out the registration form and submit payment for the registration and decal fees. Your application will not be processed until the fees are paid in full.
Step 3: Submit Your Registration Form
After submitting the form, you will receive a pending status notification and a reference number. The Tax and Revenue Administration (TRA) may contact you if additional information is needed. Once your application is reviewed and approved, you will receive a confirmation email.
Step 4: Receive Your IFTA Licence and Decals
Once approved, your IFTA licence will be available in your TRACS account. Decals will be mailed to your registered address, unless you ordered 250 or more sets and requested courier delivery.
Following these steps ensures that your IFTA registration is completed smoothly, allowing you to operate across jurisdictions without fuel tax permit requirements.
Let Pioneer Trucking Solutions Handle Your IFTA Registration
Registering for IFTA can be confusing and time-consuming, especially if you’re managing multiple trucks and handling day-to-day operations.
Missing a step or making an error could result in delays, penalties, or compliance issues that cost you time and money.
At Pioneer Trucking Solutions, we make the IFTA registration process fast, simple, and hassle-free. Our experts handle everything, from setting up your account to ensuring your licence and decals are processed without delays.
Don’t waste time navigating the registration process on your own. Let Pioneer Trucking Solutions handle your IFTA registration so you can focus on the road.
Contact us today to get started!