Guide for Completing the International Fuel Tax Agreement Quarterly Tax Return and Schedule

Revised November 2009
Published: October 2009
Content last reviewed: November 2009

The information in this guide will help you complete the International Fuel Tax Agreement (IFTA) Quarterly Tax Return and Schedule for filing in Ontario. It also provides information about filing requirements including the time for filing a quarterly Return, penalties for filing a late Return, the required supporting schedules and payment information. The information in this guide does not replace the law found in the Gasoline Tax Act or the Fuel Tax Act and related regulations.

General Information

File, pay and view your IFTA account online

ONT-TAXS online is the Ministry of Finance's secure, convenient and free online tax service. It saves time, reduces paper and is available 24 hours a day, seven days a week.

Getting started is fast and easy! Visit ontario.ca/finance or call us at 1 866 ONT-TAXS (1 866 668-8297).

Filing Returns

A return must be filed for each quarterly reporting period, including periods with no interjurisdictional travel.

To file a return for a period with no interjurisdictional travel:

  • check the box No interjurisdictional operations this tax period
  • complete A, B and C (to calculate Average Kilometres per Litre for the period), and
  • complete the Certification section.

New Owner

IFTA returns are pre-addressed using information you provide in the Application for IFTA Registration [PDF - 645 KB]. IFTA licences are not transferable and returns pre-addressed to the former owner should not be used.

To obtain an Application for IFTA Registration [PDF - 645 KB] please contact the Ministry of Finance (details given at the end of this section under Further Information) or complete our online application at ontario.ca/finance.

Amended Return

To make changes to a previously filed return, please contact the ministry or use ONT-TAXS online.

Record Keeping

Documents must be maintained for audit purposes. Do not mail supporting documents with your return unless requested by the ministry.

Each item in your return must be supported by documents in your records, such as:

  • trip logs showing kilometres travelled
  • tax paid purchase invoices, and
  • other relevant documents such as freight bills.

Interest

Interest is charged when a return is filed late, partially paid or not paid.

Penalty

A penalty is imposed when:

  • a return is filed late
  • full payment is not received by the due date
  • a complete return is not filed, or
  • an amended return is filed resulting in an increase in tax due from that reported on the initial return.

Payments

Payments may be made either online using ONT-TAXS online or by cheque or money order payable to the Minister of Finance in Canadian funds drawn on a Canadian financial institution.

Information Provided to Other Jurisdictions and IFTA Inc. Clearinghouse

Please be aware:

  • the information provided to Ontario, as required under IFTA, will be provided to other member jurisdictions and to the International Fuel Tax Association, Inc. Clearinghouse (IFTA, Inc.) for the purposes of the IFTA program
  • the information Ontario provides to other member jurisdictions and IFTA, Inc. may be subject to further mandatory disclosure under the federal, state and provincial laws in that jurisdiction (e.g. USA Patriot Act) and that the licensee may not be informed of this further disclosure
  • the information includes, but is not necessarily limited to, name, addresses, phone number, account number(s), financial data, and fuel/trip data.

Freedom of Information

Personal information contained on Quarterly Tax Returns is collected under the authority of the Fuel Tax Act, R.S.O. 1990, c.F.35, and the Gasoline Tax Act, R.S.O. 1990, c.G.5, and will be used for the purposes of the International Fuel Tax Agreement, Fuel Tax Act and Gasoline Tax Act. Questions about this information collection should be directed to: Senior Manager, Account Management, Client Services Branch, Ministry of Finance, 33 King Street West, PO Box 625, Oshawa ON LIH 8H9, 1 866 ONT-TAXS (1 866 668-8297).

Further Information

Address
Ministry of Finance
Client Services Branch
IFTA Program
33 King Street West
PO Box 625
Oshawa, ON L1H 8H9

Toll free
1 866 ONT-TAXS (1 866 668-8297)

Teletypewriter (TTY)
1 800 263-7776

Fax
905 433-5680

Website
ontario.ca/finance

Completing Your IFTA Quarterly Tax Return

The IFTA Quarterly Tax Schedule on the back of the return must be completed before you can calculate the Total Tax Due.

IFTA Quarterly Tax Return - No interjurisdictional operations for this tax period/reporting period

No interjurisdictional operations for this tax period

If you have no interjurisdictional travel to report, check the appropriate box (a return must be filed even if your vehicle(s) did not travel interjurisdictionally during this reporting period).

Also complete A, B and C in the following section of the return to provide an Average Kilometres per Litre for your fleet.

All travel and fuel reported by another company

If you worked for a carrier who is reporting for all your units:

  • check the box All travel & fuel reported by another company
  • complete section 3 Are you an owner/operator? (to provide information relating to the carrier(s) you worked for during this reporting period), and
  • complete the Certification section.

Cancel IFTA Licence

To cancel your IFTA licence, check the appropriate box and write the effective date of cancellation in the space provided (yyyy mm dd). Your IFTA licence must also be returned to the ministry with this return.

Reporting Period

IFTA returns cover one quarterly taxation period. The current reporting period and due date are indicated on your return.

Due Date

Returns must be postmarked, hand delivered or filed online (using ONT-TAXS online) by the last day of the month following the close of the reporting period. If the last day of the month falls on a Saturday, Sunday, or legal holiday, the next business day shall be considered the due date.

IFTA Quarterly Tax Return - Interjurisdictional Unit(s)/Bulk fuel storage in Ontario/Are you an Owner/Operator?

Interjurisdictional Unit(s)

Enter the number of interjurisdictional unit(s) you are reporting for this period. Interjurisdictional unit(s) are qualified motor vehicle(s) that have been licensed under IFTA and have current decals attached.

Bulk fuel storage in Ontario

For fuel purchased in bulk, enter the name and address of each bulk fuel supplier (attach a separate list if necessary). Do not include the names of suppliers of on-road purchases.

Are you an Owner/Operator?

Enter the IFTA account number(s) of the carriers (lessees) you worked for during this reporting period (attach a separate list if necessary).

Calculating Average Kilometres per Litre (KPL)

Report information on all qualified vehicles that are IFTA licensed within the current registration year.

IFTA Quarterly Tax Return - Calculating Average Kilometres per Litre

Fuel Type

A single return can be filed for one or multiple fuel types. The fuel types(s) that you have previously reported will be marked on the return. If you no longer operate interjurisdictional vehicles using the fuel type shown and you do not wish to cancel your IFTA licence, contact the ministry for further instructions.

A Total Kilometres Travelled Everywhere

Enter the total kilometres travelled in all IFTA and non-IFTA jurisdictions by all qualified vehicles using the fuel type shown. Include distances travelled under a single trip permit and provide a copy of the permit with the return.

B Total Litres of Fuel Issued Everywhere

Enter the total litres in all IFTA and non-IFTA jurisdictions by all qualified vehicles for each fuel type shown.

C Average Kilometres per Litre (KPL) ( A ÷ B ) = C

To calculate Average Kilometres per Litre divide Total Kilometres Travelled Everywhere A by Total Litres of Fuel Issued Everywhere B for each fuel type shown (round to two decimal places).

Calculating Total Tax Due / (Credit) and Certification

Complete the IFTA Quarterly Tax Schedule on the back of the return before continuing with this section.

IFTA Quarterly Tax Return - Calculating Total Tax Due/(Credit) and Certification

1 Tax Due (or Credit)

Transfer the amount from P of the schedule to 1.

2 Penalty

The penalty is five per cent of tax due, where applicable.

If you wish to calculate a penalty charge, multiply the Tax Due in 1 by five per cent and enter that amount in 2. However, the Ministry of Finance will calculate penalty on your behalf if applicable. Penalty charges will appear on your Notice of Assessment or Notice of Re-Assessment.

3 Interest

Transfer the amount from Q of the schedule to 3.

4 Subtotal

Add 1 , 2 and 3.

5 Previous Balance

If there is an outstanding balance from a previous reporting period, 5 will be pre-populated to include the amount.

6 Total Due (or Credit)

Add 4 and 5. If this amount is a credit, a refund will be sent to you upon verification of the return.

7 Payment Amount

If you owe taxes, enter the total due in 7. This is the amount you are paying. Transfer this amount to R found on the remittance portion at the bottom of the return.

6 Certification

IFTA returns must be signed by you (the carrier) or your authorized representative.

IFTA Quarterly Tax Schedule

Calculating Total Tax Due / (Credit)

IFTA Quarterly Tax Schedule - Calculating Total Tax Due/(Credit)

D Fuel Type

Use the Fuel Type Table to identify the abbreviation for the type of fuel used in this reporting period. Complete a separate line for each fuel type for each jurisdiction you are reporting.

Fuel Types

D
Diesel
G
Gasoline
N
Natural Gas
A
Gasohol
P
Propane

E IFTA Jurisdiction

Enter the abbreviation for each IFTA jurisdiction you travelled in during this reporting period (complete a separate line for each jurisdiction). Refer to the IFTA Tax Rates Table sent with this return for jurisdiction abbreviations.

F Surcharge

If a surcharge applies for a jurisdiction, check the Surcharge box and complete two separate tax lines - the regular jurisdiction tax line, as well as the surcharge line below it for each fuel type.

To complete the surcharge tax line:

  • enter the number of taxable litres in I (the same number that is entered in I in the jurisdiction tax line)
  • refer to the IFTA Tax Rates Table sent with this return to find the surcharge rate for the applicable jurisdiction and enter this amount in L
  • multiply the litres by the surcharge rate L and enter the amount in M

G Total Kilometres

Enter the total kilometres travelled in each jurisdiction.

H Taxable Kilometres

Enter the taxable kilometres travelled in each jurisdiction subtracting any tax exempt distances travelled from Total Kilometres G.

A tax exempt distance is allowed:

  • when your vehicle(s) operate(s) under an Ontario Single Trip Permit, or
  • qualifies for an exemption that is provided by an IFTA jurisdiction.

I Taxable Litres

Divide Taxable Kilometres H by the Average Kilometres per Litre C (rounded to the nearest whole number).

J Tax Paid Litres

Enter the total litres of fuel placed in the supply tank of all qualified motor vehicles in each jurisdiction travelled.

Conversion Chart (from miles and gallons to kilometres and litres)

  • 1 Imperial Gallon = 4.546 litres
  • 1 U.S. Gallon = 3.785 litres
  • 1 Mile = 1.609 kilometres

K Net Taxable Litres

Subtract Tax Paid Litres J from Taxable Litres I (rounded to the nearest whole number). If the result is a credit, enter the amount in brackets ( ).

L Tax Rate

All tax rates are in Canadian dollars per litre. Adjustments for currency exchange rates are included in these rates.

Where a split tax rate exists for a reporting period, an asterisk (*) will be shown beside the jurisdiction name. For a complete tax rate matrix, refer to the IFTA Inc. website - www.iftach.org

If there are two tax rates for a fuel type in a jurisdiction, calculate the taxes before and after the effective date of the change on two lines.

Do not use a previous Tax Rate Table for the current reporting period.

M Tax Due (or Credit)

Multiply the Net Taxable Litres K by the Tax Rate L. If the result is a credit, enter the amount in brackets ( ).

N Interest Due

If a return and full payment is not received by the due date, interest will be charged to the last day of the month in which full payment is received.

Interest rates for IFTA can be found on the ministry website at ontario.ca/finance.

If you wish to calculate your interest charges, enter the amount in N for each IFTA jurisdiction. However, the Ministry of Finance will calculate interest on your behalf if applicable. Interest charges will appear on your Notice of Assessment or Notice of Re-Assessment.

O Total Due

Add Tax Due/Credit M plus Interest Due N for each tax line.

IFTA Quarterly Tax Schedule - Total Tax Due

P Total Tax Due

Add the amounts in the Tax Due column M and enter the total in P.

Q Total Interest

Add the amounts in the Interest Due column N and enter the total in Q.

Transfer the amounts entered in P and Q to 1 and 3 on the front of the return. Indicate a credit in brackets ( ).

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