Your Obligations Under the International Fuel Tax Agreement
Did you know that as a Quebec-based business, if you use fuel in an International Fuel Tax Agreement (IFTA) zone, you must file quarterly fuel tax returns?
IFTA covers all the Canadian provinces, but none of the territories. It also covers all the states in the US with the exception of Alaska, Hawaii, and the District of Columbia. If your business uses fuel in an IFTA zone and fits the following criteria, you must file quarterly fuel tax returns:
- Your company is Québec-based and uses vehicle(s) to move people or freight in and out of Qué
- You are an independent tractor-trailer contractor in a 30-day or less contract with a larger carrier.
- The business is a lessee in a long-term lease contract.
- You are a mover that hires contractors to drive for your company.
Am I exempt from filing if my work is outside an IFTA zone?
Companies with fleets doing business outside of an IFTA zone are subject to its varying regulations. It is your responsibility to contact the governing authorities in non-IFTA regions to determine what, if anything, you need to track, report, and file.
How do I file my IFTA returns?
Revenue Québec will send IFTA licence holders form CAZ-510-V each quarter. Simply fill it out and return it. Note that two new fuel types have been added to the form this year, so always be sure to use the forms sent by Revenue Québec, or the most updated version if you are getting your forms from another source. You can use other sources for forms and filing if they are authorized by Revenue Québec.
What are the IFTA filing quarters?
Filing must occur no later than the last business day of the month. That means, if the month ends on a weekend, the following Monday is considered the last day. The quarters are:
- January 1 to March 31
- April 1 to June 30
- July 1 to September 30
- October 1 to December 31
What type of information must be on my IFTA form?
The information you’ll be providing for your fleet will include how many kilometres were travelled in IFTA zones and how much fuel was purchased for travel in IFTA zones (special notations are required for the purchase of bulk fuel). A full list of requirements and information are available on Revenue Quebec’s Fuel Tax Returns page.
This seems complicated and time consuming. Can anyone help me?
Yes! Why navigate all that paperwork on your own when AF Accounting is here to help? We perform bookkeeping, accounting, and tax services for your small business in Quebec, so you can focus on running your company.
AF Accounting is a full-service agency with a twist. Our services can be used a-la-carte, meaning you pay only for what you need, when you need it. You can also establish a monthly service with us, or engage us as your virtual CFO, to take care of your accounting needs on an ongoing basis. Are you more of the DIY, hands-on type of manager? No problem. We’ll set you up with Xero, a cloud-based accounting software that makes tracking, filing, and reporting a breeze.
As a business owner, there are many forms you need to handle to ensure you are in compliance with Revenue Québec and CRA. AF Accounting is here to ensure your experience with the accounting side of your business is a pleasant and efficient one.