International Fuel Tax Agreement (IFTA)
This section provides information on the International Fuel Tax Agreement (IFTA) for Prince Edward Island interprovincial and interstate carriers. Under this agreement Prince Edward Island can issue a fuel tax license to Island carriers, which allows them to travel in all IFTA member jurisdictions.
How will the new price on carbon impact IFTA Carriers?
In Prince Edward Island, the new levy on carbon will be blended into the IFTA tax rate and PEI IFTA carriers will not have to do anything different for their IFTA returns. However, PEI IFTA carriers who travel in New Brunswick, Ontario, Manitoba, and Saskatchewan will have to register with the Canada Revenue Agency (CRA). More information on the responsibilities that IFTA carriers will have with CRA can be found at: http://www.canada.ca/en/revenue-agency/services/tax/excise-taxes-duties-levies/fuel-charge.hml
What is the International Fuel Tax Association, Inc.?
Prince Edward Island is a member of the International Fuel Tax Association, Inc. and has signed the International Fuel Tax Agreement (IFTA). This agreement provides for the centralized collection and distribution of fuel taxes between member jurisdictions in Canada and the United States.
Why is the International Fuel Tax Agreement (IFTA) important for Prince Edward Island carriers?
The International Fuel Tax Agreement (IFTA) eliminates the requirement for interprovincial and interstate carriers to hold fuel tax licenses in multiple jurisdictions and allows for quarterly filing of Gasoline Tax remittances in their home jurisdiction of Prince Edward Island.
How does it work?
If you are operating a qualified motor vehicle(s) in two or more IFTA member jurisdictions you are required to apply for a license under the International Fuel Tax Agreement (IFTA) using the Application for International Fuel Tax Agreement (IFTA) License.
If you meet application requirements, an IFTA license and IFTA decals will be issued. You can request additional/replacement decals using Request for Additional/Replacement Decals.
The reference guide Taxpayer Information – International Fuel Tax Agreement provides direction for carriers operating under the International Fuel Tax Agreement (IFTA).
The reference guide IFTA Audit Guidelines provides an overview of the mandatory fuel tax audit processes.
What If I don’t have time to receive the IFTA decals prior to my travel?
If time is an issue and you are unable to get to the Taxation and Property Records Division offices in Charlottetown, a Temporary Decal Permit may be issued along with your IFTA license. You will need to make contact with an Access PEI office in your area. That office will send the IFTA application to Taxation and Property Records Division electronically and collect your payment. The Temporary Decal Permit and IFTA license will be sent electronically and the original license and decals will be mailed. The Temporary Decal Permit is valid for thirty days.
Is there a cost?
The IFTA license fee is $25.00, plus $25.00 for each set of decals. You will need one set of decals per truck.
Can I satisfy my tax obligations without licensing under the IFTA agreement?
You can satisfy motor fuel use tax obligations by obtaining a Single Trip Fuel Permit in each jurisdiction you wish to travel. In Prince Edward Island the Single Trip Fuel Permits are available at the highway scale at the point of entry. You may want to contact other jurisdictions prior to travel for their requirements.
What is the IFTA Quarterly Tax Report?
IFTA carriers must remit Gasoline Tax to their home jurisdiction quarterly. A hard copy of the IFTA Quarterly Tax Report form and associated instructions for use is mailed quarterly to each licensed carrier. An Excel version of the IFTA Quarterly Tax Report is also available for use by the PEI IFTA carriers.
International Fuel Tax Agreement Notices
From time to time Gasoline Tax Notices - IFTA are issued to communicate important information on tax rates, annual renewals and general IFTA updates.
Who should I contact if I have questions about the program?
Taxation and Property Records
Phone: (902) 368-4070
Fax: (902) 368-6164