Due to a tax rate error by the State of Virginia, the January 1 to March 31, 2015 (Q1) Tax Rates Chart published by the Ministry of Finance will differ from the version available on the IFTA, Inc. website. When completing returns for this period, please ensure the tax rates chart issued by Ontario is used.
You may contact the ministry at 1 866 ONT-TAXS (1 866 668-8297) if you have any questions.
If you operate a commercial truck or bus in more than one province or state, you are an interjurisdictional carrier and you should know about the International Fuel Tax Agreement.
IFTA is a cooperative agreement among the Canadian provinces and most American states to make it easier for interjurisdictional carriers to report and pay taxes on the motor fuels they use.
The agreement allows registered interjurisdictional carriers to get one licence, issued by their base jurisdiction, to report and pay motor fuel taxes to a single jurisdiction.
Under IFTA, interjurisdictional carriers report the amount of motor fuel consumed and the distance travelled in each jurisdiction. Member jurisdictions work together to track, collect and share the taxes payable on motor fuels such as gasoline, diesel, propane, gasohol, methanol, ethanol, natural gas and biodiesel.
Vehicles registered under IFTA display identifying decals issued by their home jurisdiction.
Registering gives you the benefit of:
IFTA credentials are valid for travel in the 10 provinces in Canada and 48 states in the U.S.
Six jurisdictions are not IFTA members and IFTA credentials are not valid for travel there:
You should register for IFTA with Ontario if:
A recreational vehicle such as a motor home or a pickup with a camper is not considered a qualified motor vehicle when used exclusively for personal pleasure. Vehicles used in connection with a business operation are not considered recreational.
When you transport goods for someone else, a contract may hold the carrier and not the vehicle owner responsible for interjurisdictional reporting and payment of fuel taxes. The contract needs to identify:
The responsible party identified in the contract should obtain the IFTA licence.
If you do not have a valid IFTA licence and occasionally travel into other jurisdictions, you can buy a single trip permit. The permit can be purchased on a trip-by-trip basis from authorized permit agents.
A single trip permit allows qualified vehicles conditional travel in another jurisdiction. The permit is valid for one vehicle making a single journey into another jurisdiction for a pre-determined distance and time period. Single trip permits may also include other fees in addition to the fuel tax.
To receive your IFTA licence and decals:
Mail your completed application and payment to:
Ministry of Finance
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
Prior to the end of the year, a renewal application will be issued automatically to eligible IFTA licensees.
Driving marked vehicles with emergency lights, uniformed inspectors monitor truck traffic throughout the province. Inspectors have the authority to stop and detain commercial motor vehicles for inspection purposes. They ensure compliance by:
A person committing an offence relating to the improper use of coloured fuel in Ontario is liable to a fine and related charges on first offence of $465. Fines of up to $1 million or imprisonment for up to two years are possible for other offences under the Fuel Tax Act, such as tampering with coloured fuel. Offenders will also be audited and may be assessed tax, penalties and interest.
As an IFTA licensee, you report your fuel purchases and jurisdictional travel within one month after the end of every quarter. The Ministry of Finance will mail an IFTA tax return to you at least 30 days before each due date.
On your IFTA tax return, you will report how much tax-paid fuel you purchased and the distance travelled in each jurisdiction. You will balance overpayments in one jurisdiction against amounts owed in other jurisdictions. If the net result is an underpayment, you will send one payment to Ontario. If the net result is an overpayment, you will receive one refund from Ontario.
The IFTA Tax Rate Matrix is the official source for all IFTA fuel tax rates.
To view the IFTA Tax Rate Matrix, please visit the International Fuel Tax Association's website.
IFTA tax returns must be postmarked or hand delivered by the due date, which is shown on the top of every return. The reporting quarters and due dates are:
|IFTA Reporting Quarter||Return Due Date|
|1st Quarter - January to March||April 30|
|2nd Quarter - April to June||July 31|
|3rd Quarter - July to September||October 31|
|4th Quarter - October to December||January 31|
The Ministry of Finance may require that you post security:
The Minister of Finance will cancel an IFTA licence at your request if:
To cancel your account, check off the'"Cancel IFTA licence' section on your latest IFTA tax return and enter the last date of business. You can also write to the Ministry of Finance and request your account be cancelled. In your letter, state the last day of business.
You are required to:
The ministry will notify all IFTA member jurisdictions of your cancellation.
The Minister of Finance may revoke your IFTA licence if you fail to:
In the absence of a valid IFTA license, qualified vehicles must obtain separate single trip permits prior to any interjurisdictional travel.
Before your IFTA licence can be re-activated, the Minister of Finance may require security. You will be informed of any security requirement once you have:
All interjurisdictional carrier vehicles weighing more than 11,793 kg should also register under the International Registration Plan. This plan allows for the distribution of registration fees for commercial motor vehicles traveling through more than one member province or state.