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PROCEDURES
MANUAL
Effective July 1, 1998 Last Revised January 2008
IFTA PROCEDURES MANUAL 1 January 1996
Effective July 1, 1998
Last Revised January 2007
TEXTUAL NOTE
The International Fuel Tax Agreement Procedures Manual has been subject to
amendments under Section R1600 of the Articles of Agreement. It is the purpose of this
publication to provide a commentary when sections have been amended.
The official commentary voted on by the IFTA membership is shown in italics. All
commentaries initiate from Consensus Board interpretations of issues or history/intent
segments of IFTA ballots.
An asterisk (*) next to a Section number indicates commentary to that Section.
IFTA PROCEDURES MANUAL 2 January 1996
Effective July 1, 1998
Last Revised January 2007
TABLE OF CONTENTS
P100 LICENSE APPLICATION CONTENT.........................................................................4
Commentary to P100 ..............................................................................................................6
P200 ACCOUNT IDENTIFICATION....................................................................................7
P210 FEDERAL EMPLOYER IDENTIFICATION NUMBERS..............................................7
P220 SOCIAL SECURITY NUMBERS................................................................................7
P230 CANADIAN IDENTIFICATION NUMBERS.................................................................7
P240 BASE JURISDICTION ASSIGNED NUMBERS..........................................................7
Commentary to P200................................................................................................... 8
P300 LICENSE AND DECAL DESIGN...............................................................................9
P310 LICENSE ...................................................................................................................9
P320 DECALS ....................................................................................................................9
Commentary to P300 ..............................................................................................................11
P400 POSTING BONDS.....................................................................................................12
P410 AMOUNT OF BOND..................................................................................................12
P420 SURETY BOND.........................................................................................................12
P430 SUBSTITUTES FOR SURETY BOND.......................................................................12
Commentary to P400 ..............................................................................................................14
P500 RECORDKEEPING ...................................................................................................15
P510 PRESERVATION OF RECORDS ..............................................................................15
P520 AVAILABILITY OF RECORDS...................................................................................15
P530 NON-COMPLIANCE ..................................................................................................15
P540 DISTANCE RECORDS..............................................................................................15
P550 FUEL RECORDS.......................................................................................................16
P560 TAX PAID RETAIL PURCHASES..............................................................................17
P570 TAX PAID BULK FUEL PURCHASES .......................................................................18
Commentary to P500 ..............................................................................................................20
P600 ELECTRONIC DATA RECORDING SYSTEMS.........................................................21
P610 OPTIONAL USE FOR FUEL TAX REPORTING........................................................21
P620 DEVICES USED WITH MANUAL SYSTEMS.............................................................21
P630 DEVICES USED WITH COMPUTER SYSTEMS.......................................................21
P640 DATA COLLECTION REQUIREMENTS....................................................................22
P650 REPORTING REQUIREMENTS................................................................................23
P660 MINIMUM DEVICE REQUIREMENTS .......................................................................24
P670 CARRIER RESPONSIBILITIES .................................................................................25
Commentary to P600 ..............................................................................................................27
IFTA PROCEDURES MANUAL 3 January 1996
Effective July 1, 1998
Last Revised January 2007
P700 STANDARD TAX RETURNS.....................................................................................28
P710 GENERAL GUIDELINES...........................................................................................28
P720 REQUIRED INFORMATION......................................................................................28
P730 CONVERSION RATES AND MEASUREMENTS.......................................................30
Commentary to P700..............................................................................................................31
P800 TAX RETURN PROCESSING...................................................................................32
P900 BASE JURISDICTION RECORDKEEPING...............................................................33
P910 LICENSEE RECORDS ..............................................................................................33
P920 PRESERVATION OF RECORDS..............................................................................33
Commentary to P900..............................................................................................................35
P1000 BASE JURISDICTION ACCOUNTING......................................................................36
P1010 UNIFORM NUMBERING SYSTEM............................................................................36
P1020 EXCHANGE RATE....................................................................................................36
P1030 U.S. AND CANADIAN FUNDS TRANSFERS ............................................................36
P1040 MONTHLY TRANSMITTALS .....................................................................................37
P1050 NUMBERING OF MONTHLY TRANSMITTALS.........................................................38
P1060 ALLOCATION OF TAX..............................................................................................38
P1070 CREDIT FOR TAX-PAID PURCHASES ....................................................................39
Commentary to P1000 ............................................................................................................41
P1100 BASE JURISDICTION REPORTING.........................................................................43
P1110 ANNUAL REPORTING..............................................................................................43
P1120 TAX RATE REPORTING...........................................................................................43
P1130 REPORTING OF OTHER INFORMATION ................................................................44
Commentary to P1100 ............................................................................................................45
P1200 PROGRAM COMPLIANCE REVIEWS......................................................................46
P1210 REVIEW REQUIREMENT .........................................................................................46
P1220 PROGRAM COMPLIANCE REVIEW GUIDE.............................................................46
P1230 REQUIRED PARTICIPATION ...................................................................................46
Commentary to P1200 ............................................................................................................47
P1300 UNITS OF MEASUREMENT .....................................................................................48
P1310 U.S./METRIC MEASUREMENTS ..............................................................................48
P1320 FUELS NOT MEASURED IN LITERS OR GALLONS................................................48
Commentary to P1300 ............................................................................................................49
IFTA PROCEDURES MANUAL 4 January 1996
Effective July 1, 1998
Last Revised January 2007
*See Textual Note on page 1.
P100 LICENSE APPLICATION CONTENT
The application for an IFTA fuel tax license shall be in a uniform format and shall contain, but not
be limited to, the following information:
P105 The account identification number specified in IFTA Procedures Manual Section P200;
P110 Name of owner, partners or corporation;
P115 Legal business name (if different from the name given above);
P120 Physical location of the business;
P125 Mailing address of the business;
*P130 Signature or electronic submission compliant with R940.400 and P160 and date;
P135 Number of IFTA decals required by licensee;
P140 Application fee (if applicable);
P145 Decal fee (if applicable);
P155 Statement of existence of bulk storage in all member jurisdictions;
*P160 Certification:
Applicant agrees to comply with tax reporting, payment, recordkeeping, and license
display requirements as specified in the International Fuel Tax Agreement. The applicant
further agrees that base jurisdiction may withhold any refunds due if applicant is
delinquent on payment of fuel taxes due any member jurisdiction. Failure to comply with
these provisions shall be grounds for revocation of license in all member jurisdictions; and
A statement to the effect that the applicant certifies with his or her signature or electronic
submission as deemed acceptable by the base jurisdiction that, to the best of his or her
knowledge, the information is true, accurate, and complete and any falsification subjects
him or her to appropriate civil and/or criminal sanction of the base jurisdiction. (e.g.,
perjury)
IFTA PROCEDURES MANUAL 5 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA PROCEDURES MANUAL 6 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P100
P130 IFTA Ballot 1-1999 amended IFTA Procedures Manual to remove the language then found at P130 which required the IFTA
jurisdictions in which the licensee was applying on the initial IFTA license application (optional on renewal applications) and
was effective January 1, 2001. Upon removing this provision, the remaining sections were renumbered.
P130 [EDITOR’S NOTE: In light of the passage of Ballot 1-1999, effective January 1, 2001, the commentary below
concerning P130 is for historical reference only.]
P130 Ballots 90-267-1 and 90-267-2, passed in March 1, 1991, amended the many references to U.S. measurement units, such as
miles and gallons, and added additional language in the Agreement and the Procedures Manual to allow the Canadian
provinces to join IFTA. IFTA Procedures Manual sections which were amended by these ballots as follows: P130; P210;
P230; P240; P310; P320.100,.200; P430.100,.200,.400,.500; P540.100,.200; P550.100,.400; P560.300; P570.400;
P720.250,.350,.500; P910; P1020; P1030; P1040.200,.250,.300,.350,.400,.450; P1120; P1130; P1310.
P130 IFTA Ballot 6-1996 amended IFTA Procedures Manual Section P130 to provide that the IFTA jurisdictions in which the
licensee is applying is a requirement on an initial license application but is optional on renewal applications and was effective
July 1, 1998.
P130 IFTA Ballot 10-2005 amended the IFTA Procedures Manual, Section P130 to recognize electronic submissions for
purposes of the license application process and was effective December 31, 2005.
P160 IFTA Ballot 6-1996 amended IFTA Procedures Manual Section P160 to remove the requirement of a signature under penalty
of perjury and to add a certification requirement that meets the legal requirements of the base jurisdiction and was effective
July 1, 1998.
P160 IFTA Ballot 16-2004 amended the IFTA Procedures Manual to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective on January 1, 2006.
P160 IFTA Ballot 10-2005 amended the IFTA Procedures Manual, Section P160, to recognize electronic submissions for
purposes of the license application process and was effective December 31, 2005.
[This area intentionally left blank.]
IFTA PROCEDURES MANUAL 7 January 1996
Effective July 1, 1998
Last Revised January 2007
P200 ACCOUNT IDENTIFICATION
Each jurisdiction shall assign account numbers to its licensees according to a uniform numbering
system of eleven characters which shall contain as the first two characters the alphabetic
designation of the base jurisdiction.
*P210 FEDERAL EMPLOYER IDENTIFICATION NUMBERS
For U.S. jurisdictions, the subsequent nine characters will be the Federal Employer
Identification number of the licensee issued by the Internal Revenue Service. Jurisdictions
that establish fleet accounts shall identify each account with a fleet identifier in addition to
the carrier identification number.
P220 SOCIAL SECURITY NUMBERS
The Social Security number of an officer of the company may be used if the company
does not have a federal identification number.
*P230 CANADIAN IDENTIFICATION NUMBERS
Canadian jurisdictions will adopt a numbering system for the subsequent nine characters
which will meet their needs.
*P240 BASE JURISDICTION ASSIGNED NUMBERS
A licensee who refuses to give identification number information or is erroneously issued
an International Fuel Tax Agreement License without providing this information may be
given a base jurisdiction assigned number beginning with 90. This will become the
licensee's identification number for transmittal purposes until the correct information is
obtained. The same procedure will apply if the licensee has applied for, but not yet
received, his U.S. federal identification number. For audit purposes, the identity of the
base jurisdiction assigned number must be maintained after the correct number is
provided by the licensee.
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IFTA PROCEDURES MANUAL 8 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P200
P210, P230 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P240 jurisdictions outside of the United States.
P240 IFTA Ballot 2-1997 amended IFTA Procedures Manual Section P240 to provide that the assignment of a “90” prefixed
account number to a prospective IFTA licensee who refuses to give identification number information or is erroneously issued
a license is discretionary to the base jurisdiction and was effective January 1, 1998.
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IFTA PROCEDURES MANUAL 9 January 1996
Effective July 1, 1998
Last Revised January 2007
P300 LICENSE AND DECAL DESIGN
*P310 LICENSE
The IFTA license shall be approximately 3-1/2 x 8-1/2 inches (9 x 21.5 centimeters), of a
uniform format, and shall contain, but not be limited to, the following information:
.100 Base jurisdiction identification;
.200 Licensee's name and address and DBA, if different from owner, partner or
corporate name;
.300 Licensee's account identification number; and
.400 Expiration date (month, day and year).
*P320 DECALS
.100 Contents
Decals will be approximately 3 inches x 3 inches (7.5 centimeters x 7.5
centimeters) with white letters and a background color as specified for the
current year. The letters "IFTA" are to be a minimum of 3/4 inch (1.88
centimeters) in height and are to be incorporated into the decal with the letter I in
the upper left-hand corner, the letter A in the lower right-hand corner, and the
letters F and T to be incorporated in such a way as to constitute a diagonal
design on the decal. The two-letter jurisdiction designation shall be displayed in
the lower left-hand corner, and at least the last two numbers of the appropriate
year are to be displayed in the upper right-hand corner. Decals shall be
serialized. The serial number of each decal shall be no less than 3/16” high
(0.47625 centimeters) and shall be displayed between the two-letter jurisdiction
designation and the letter “A” of “IFTA”.
The coloring of the numbering shall be compatible with the background color as
determined by IFTA, Inc. There shall be no other printing on the decal unless
authorized by the IFTA, Inc. Board of Trustees.
.200 Materials
IFTA, Inc. shall set the standards for quality of ink, vinyl, type of font, and other
pertinent standards to insure uniformity and consistency among the jurisdictions.
IFTA, Inc. shall provide examples to all jurisdictions on an annual basis. Standards
must be set and examples distributed by IFTA, Inc. no later than one full year prior
to when the decals are required to be displayed.
IFTA PROCEDURES MANUAL 10 January 1996
Effective July 1, 1998
Last Revised January 2007
.300 Administrative Fees
The base jurisdiction may impose a decal fee to recover reasonable
administrative costs.
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IFTA PROCEDURES MANUAL 11 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P300
P310 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P320.100 jurisdictions outside of the United States.
P320.100 In July 1996, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 47-96, as narrative to
the IFTA Procedures Manual Section P320.100.
ISSUE: Is the requirement of displaying the last two numbers of the appropriate year in the upper right-hand corner of the IFTA decal
a minimum requirement?
BOARD INTERPRETATION:
The requirement to print the last two numbers of the appropriate year in the upper right-hand corner of the IFTA decal is a
minimum requirement only. The four numbers of the appropriate year may be printed on the IFTA decals.
P320.100 Ballot 8-2005 amended IFTA Procedures Manual Section P320.100 to require that decals be serialized and to set the
specifications for such serialization and was effective January 1, 2007.
P320.200 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate jurisdictions outside of
the United States.
P320.200 Ballot 6-2998 amended IFTA Procedures Manual Section P320.200 to require IFTA, Inc. to set decal standards and was
effective July 1, 2000.
P320.200 Ballot 1-2003 amended IFTA Procedures Manual Section P320.200 to state that IFTA, Inc. must provide examples of decals,
rather than samples, and to require that the specifications and examples be distributed to the member jurisdictions
by no later than one year prior to when the decals are required to be displayed and was effective October 10, 2003.
[This area intentionally left blank.]
IFTA PROCEDURES MANUAL 12 January 1996
Effective July 1, 1998
Last Revised January 2007
P400 POSTING BONDS
*P410 AMOUNT OF BOND
The total amount of the bond shall be fixed by the base jurisdiction and shall be equivalent
to at least twice the estimated average tax liability for the tax reporting period for which the
licensee will be required to file a tax return.
P420 SURETY BOND
A licensee required to post a bond may provide a surety bond in the amount determined
by the base jurisdiction.
*P430 SUBSTITUTES FOR SURETY BOND
In lieu of a surety bond, the licensee may deposit with the base jurisdiction one of the
following:
.100 Bonds
Bonds or other obligations of the United States or Canada, the base jurisdiction, or
any county or city of the base jurisdiction, having a market value not less than the
bond amount required and made payable to the base jurisdiction;
.200 Certificates of Deposit
Automatically renewable time certificates of deposit not exceeding the insured
amount, issued by a bank doing business in the base jurisdiction and insured by
the Federal Deposit Insurance Corporation or the Canadian Deposit Insurance
Corporation, made in the name of the depositor, payable to the base jurisdiction,
and containing the provision that interest earned shall be payable to the depositor
and that the certificate may only be canceled by written authorization from the base
jurisdiction;
.300 Investment Certificates or Share Account
Investment certificates or share accounts not exceeding the federally insured
amount, issued by a savings and loan association doing business in the base
jurisdiction, and insured by the Federal Savings and Loan Insurance Corporation.
Evidence of the insured account, either certificate or passbook, must be delivered
to the base jurisdiction, along with a properly executed assignment form whereby
the funds on deposit are assigned and made payable to the base jurisdiction;
IFTA PROCEDURES MANUAL 13 January 1996
Effective July 1, 1998
Last Revised January 2007
.400 Cash
Lawful money of the United States or Canada. Cash bonds must be submitted in
the form of a cashier's check, money order, or other certified funds which are
payable to the base jurisdiction; or
.500 Other Secure Obligations
Any other secure obligations deemed appropriate by the base jurisdiction to cover
the projected liabilities for all member jurisdictions.
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IFTA PROCEDURES MANUAL 14 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P400
P410 IFTA Ballot 16-2004 amended the IFTA Procedures Manual to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
P430.100 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P430.200 jurisdictions outside of the United States
P430.400 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P430.500 jurisdictions outside of the United States.
[This area intentionally left blank.]
IFTA PROCEDURES MANUAL 15 January 1996
Effective July 1, 1998
Last Revised January 2007
P500 RECORDKEEPING
*P510 PRESERVATION OF RECORDS
.100 The licensee is required to preserve the records upon which the quarterly tax
return or annual tax return is based for four years from the tax return due date or
filing date, whichever is later, plus any time period included as a result of waivers
or jeopardy assessments.
.200 Failure to provide records demanded for audit purposes extends the four year
record retention requirement until the records are provided.
.300 Records may be kept on microfilm, microfiche, or other computerized or
condensed record storage system acceptable to the base jurisdiction.
P520 AVAILABILITY OF RECORDS
.100 Records shall be made available upon request by any member jurisdiction and
shall be available for audit during normal business hours.
.200 If records to be audited are located outside of the base jurisdiction, and the base
jurisdiction must send auditors to the place records are kept, the licensee may be
required to reimburse the base jurisdiction for reasonable per diem and travel
expenses of its auditors as authorized by law.
P530 NON-COMPLIANCE
.100 Failure to maintain records upon which the licensee's true liability may be
determined or to make records available upon proper request may result in an
assessment as stated in IFTA Articles of Agreement Section R1200.
.200 Non-compliance with any recordkeeping requirement may be cause for revocation
of the license. The base jurisdiction may defer license revocation if the licensee
shows evidence of compliance for future operations.
*P540 DISTANCE RECORDS
.100 Licensees shall maintain detailed distance records which show operations on an
individual-vehicle basis. The operational records shall contain, but not be limited
to:
.005 Taxable and non-taxable usage of fuel;
.010 Distance traveled for taxable and non-taxable use; and
IFTA PROCEDURES MANUAL 16 January 1996
Effective July 1, 1998
Last Revised January 2007
.015 Distance recaps for each vehicle for each jurisdiction in which the vehicle
operated.
.200 An acceptable distance accounting system is necessary to substantiate the
information reported on the tax return filed quarterly or annually. A licensee's
system at a minimum, must include distance data on each individual vehicle for
each trip and be recapitulated in monthly fleet summaries. Supporting information
should include:
.005 Date of trip (starting and ending);
.010 Trip origin and destination;
.015 Route of travel (may be waived by base jurisdiction);
.020 Beginning and ending odometer or hubodometer reading of the trip (may
be waived by base jurisdiction);
.025 Total trip miles/kilometers;
.030 Miles/kilometers by jurisdiction;
.035 Unit number or vehicle identification number;
.040 Vehicle fleet number;
.045 Registrant's name; and
.050 may include additional information at the discretion of the base jurisdiction.
*P550 FUEL RECORDS
.100 The licensee must maintain complete records of all motor fuel purchased,
received, and used in the conduct of its business.
.200 Separate totals must be compiled for each motor fuel type.
.300 Retail fuel purchases and bulk fuel purchases are to be accounted for separately.
IFTA PROCEDURES MANUAL 17 January 1996
Effective July 1, 1998
Last Revised January 2007
.400 The fuel records shall contain, but not be limited to:
.005 The date of each receipt of fuel;
.010 The name and address of the person from whom purchased or received;
.015 The number of gallons or liters received;
.020 The type of fuel; and
.025 The vehicle or equipment into which the fuel was placed.
*P560 TAX PAID RETAIL PURCHASES
.100 Retail purchases must be supported by a receipt or invoice, credit card receipt,
automated vendor generated invoice or transaction listing, or microfilm/microfiche
of the receipt or invoice. Receipts that have been altered or indicate erasures are
not accepted for tax-paid credits unless the licensee can demonstrate the receipt is
valid.
.200 Receipts for retail fuel purchases must identify the vehicle by the plate or unit
number or other licensee identifier, as distance traveled and fuel consumption may
be reported only for vehicles identified as part of the licensee's operation.
.300 An acceptable receipt or invoice must include, but shall not be limited to, the
following:
.005 Date of purchase;
.010 Seller's name and address;
.015 Number of gallons or liters purchased;
.020 Fuel type;
.025 Price per gallon or liter or total amount of sale;
.030 Unit numbers; and
.035 Purchaser's name (See R1010.300 of the IFTA Articles of Agreement).
MANUAL
Effective July 1, 1998 Last Revised January 2008
IFTA PROCEDURES MANUAL 1 January 1996
Effective July 1, 1998
Last Revised January 2007
TEXTUAL NOTE
The International Fuel Tax Agreement Procedures Manual has been subject to
amendments under Section R1600 of the Articles of Agreement. It is the purpose of this
publication to provide a commentary when sections have been amended.
The official commentary voted on by the IFTA membership is shown in italics. All
commentaries initiate from Consensus Board interpretations of issues or history/intent
segments of IFTA ballots.
An asterisk (*) next to a Section number indicates commentary to that Section.
IFTA PROCEDURES MANUAL 2 January 1996
Effective July 1, 1998
Last Revised January 2007
TABLE OF CONTENTS
P100 LICENSE APPLICATION CONTENT.........................................................................4
Commentary to P100 ..............................................................................................................6
P200 ACCOUNT IDENTIFICATION....................................................................................7
P210 FEDERAL EMPLOYER IDENTIFICATION NUMBERS..............................................7
P220 SOCIAL SECURITY NUMBERS................................................................................7
P230 CANADIAN IDENTIFICATION NUMBERS.................................................................7
P240 BASE JURISDICTION ASSIGNED NUMBERS..........................................................7
Commentary to P200................................................................................................... 8
P300 LICENSE AND DECAL DESIGN...............................................................................9
P310 LICENSE ...................................................................................................................9
P320 DECALS ....................................................................................................................9
Commentary to P300 ..............................................................................................................11
P400 POSTING BONDS.....................................................................................................12
P410 AMOUNT OF BOND..................................................................................................12
P420 SURETY BOND.........................................................................................................12
P430 SUBSTITUTES FOR SURETY BOND.......................................................................12
Commentary to P400 ..............................................................................................................14
P500 RECORDKEEPING ...................................................................................................15
P510 PRESERVATION OF RECORDS ..............................................................................15
P520 AVAILABILITY OF RECORDS...................................................................................15
P530 NON-COMPLIANCE ..................................................................................................15
P540 DISTANCE RECORDS..............................................................................................15
P550 FUEL RECORDS.......................................................................................................16
P560 TAX PAID RETAIL PURCHASES..............................................................................17
P570 TAX PAID BULK FUEL PURCHASES .......................................................................18
Commentary to P500 ..............................................................................................................20
P600 ELECTRONIC DATA RECORDING SYSTEMS.........................................................21
P610 OPTIONAL USE FOR FUEL TAX REPORTING........................................................21
P620 DEVICES USED WITH MANUAL SYSTEMS.............................................................21
P630 DEVICES USED WITH COMPUTER SYSTEMS.......................................................21
P640 DATA COLLECTION REQUIREMENTS....................................................................22
P650 REPORTING REQUIREMENTS................................................................................23
P660 MINIMUM DEVICE REQUIREMENTS .......................................................................24
P670 CARRIER RESPONSIBILITIES .................................................................................25
Commentary to P600 ..............................................................................................................27
IFTA PROCEDURES MANUAL 3 January 1996
Effective July 1, 1998
Last Revised January 2007
P700 STANDARD TAX RETURNS.....................................................................................28
P710 GENERAL GUIDELINES...........................................................................................28
P720 REQUIRED INFORMATION......................................................................................28
P730 CONVERSION RATES AND MEASUREMENTS.......................................................30
Commentary to P700..............................................................................................................31
P800 TAX RETURN PROCESSING...................................................................................32
P900 BASE JURISDICTION RECORDKEEPING...............................................................33
P910 LICENSEE RECORDS ..............................................................................................33
P920 PRESERVATION OF RECORDS..............................................................................33
Commentary to P900..............................................................................................................35
P1000 BASE JURISDICTION ACCOUNTING......................................................................36
P1010 UNIFORM NUMBERING SYSTEM............................................................................36
P1020 EXCHANGE RATE....................................................................................................36
P1030 U.S. AND CANADIAN FUNDS TRANSFERS ............................................................36
P1040 MONTHLY TRANSMITTALS .....................................................................................37
P1050 NUMBERING OF MONTHLY TRANSMITTALS.........................................................38
P1060 ALLOCATION OF TAX..............................................................................................38
P1070 CREDIT FOR TAX-PAID PURCHASES ....................................................................39
Commentary to P1000 ............................................................................................................41
P1100 BASE JURISDICTION REPORTING.........................................................................43
P1110 ANNUAL REPORTING..............................................................................................43
P1120 TAX RATE REPORTING...........................................................................................43
P1130 REPORTING OF OTHER INFORMATION ................................................................44
Commentary to P1100 ............................................................................................................45
P1200 PROGRAM COMPLIANCE REVIEWS......................................................................46
P1210 REVIEW REQUIREMENT .........................................................................................46
P1220 PROGRAM COMPLIANCE REVIEW GUIDE.............................................................46
P1230 REQUIRED PARTICIPATION ...................................................................................46
Commentary to P1200 ............................................................................................................47
P1300 UNITS OF MEASUREMENT .....................................................................................48
P1310 U.S./METRIC MEASUREMENTS ..............................................................................48
P1320 FUELS NOT MEASURED IN LITERS OR GALLONS................................................48
Commentary to P1300 ............................................................................................................49
IFTA PROCEDURES MANUAL 4 January 1996
Effective July 1, 1998
Last Revised January 2007
*See Textual Note on page 1.
P100 LICENSE APPLICATION CONTENT
The application for an IFTA fuel tax license shall be in a uniform format and shall contain, but not
be limited to, the following information:
P105 The account identification number specified in IFTA Procedures Manual Section P200;
P110 Name of owner, partners or corporation;
P115 Legal business name (if different from the name given above);
P120 Physical location of the business;
P125 Mailing address of the business;
*P130 Signature or electronic submission compliant with R940.400 and P160 and date;
P135 Number of IFTA decals required by licensee;
P140 Application fee (if applicable);
P145 Decal fee (if applicable);
P155 Statement of existence of bulk storage in all member jurisdictions;
*P160 Certification:
Applicant agrees to comply with tax reporting, payment, recordkeeping, and license
display requirements as specified in the International Fuel Tax Agreement. The applicant
further agrees that base jurisdiction may withhold any refunds due if applicant is
delinquent on payment of fuel taxes due any member jurisdiction. Failure to comply with
these provisions shall be grounds for revocation of license in all member jurisdictions; and
A statement to the effect that the applicant certifies with his or her signature or electronic
submission as deemed acceptable by the base jurisdiction that, to the best of his or her
knowledge, the information is true, accurate, and complete and any falsification subjects
him or her to appropriate civil and/or criminal sanction of the base jurisdiction. (e.g.,
perjury)
IFTA PROCEDURES MANUAL 5 January 1996
Effective July 1, 1998
Last Revised January 2007
[This page intentionally left blank.]
IFTA PROCEDURES MANUAL 6 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P100
P130 IFTA Ballot 1-1999 amended IFTA Procedures Manual to remove the language then found at P130 which required the IFTA
jurisdictions in which the licensee was applying on the initial IFTA license application (optional on renewal applications) and
was effective January 1, 2001. Upon removing this provision, the remaining sections were renumbered.
P130 [EDITOR’S NOTE: In light of the passage of Ballot 1-1999, effective January 1, 2001, the commentary below
concerning P130 is for historical reference only.]
P130 Ballots 90-267-1 and 90-267-2, passed in March 1, 1991, amended the many references to U.S. measurement units, such as
miles and gallons, and added additional language in the Agreement and the Procedures Manual to allow the Canadian
provinces to join IFTA. IFTA Procedures Manual sections which were amended by these ballots as follows: P130; P210;
P230; P240; P310; P320.100,.200; P430.100,.200,.400,.500; P540.100,.200; P550.100,.400; P560.300; P570.400;
P720.250,.350,.500; P910; P1020; P1030; P1040.200,.250,.300,.350,.400,.450; P1120; P1130; P1310.
P130 IFTA Ballot 6-1996 amended IFTA Procedures Manual Section P130 to provide that the IFTA jurisdictions in which the
licensee is applying is a requirement on an initial license application but is optional on renewal applications and was effective
July 1, 1998.
P130 IFTA Ballot 10-2005 amended the IFTA Procedures Manual, Section P130 to recognize electronic submissions for
purposes of the license application process and was effective December 31, 2005.
P160 IFTA Ballot 6-1996 amended IFTA Procedures Manual Section P160 to remove the requirement of a signature under penalty
of perjury and to add a certification requirement that meets the legal requirements of the base jurisdiction and was effective
July 1, 1998.
P160 IFTA Ballot 16-2004 amended the IFTA Procedures Manual to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective on January 1, 2006.
P160 IFTA Ballot 10-2005 amended the IFTA Procedures Manual, Section P160, to recognize electronic submissions for
purposes of the license application process and was effective December 31, 2005.
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IFTA PROCEDURES MANUAL 7 January 1996
Effective July 1, 1998
Last Revised January 2007
P200 ACCOUNT IDENTIFICATION
Each jurisdiction shall assign account numbers to its licensees according to a uniform numbering
system of eleven characters which shall contain as the first two characters the alphabetic
designation of the base jurisdiction.
*P210 FEDERAL EMPLOYER IDENTIFICATION NUMBERS
For U.S. jurisdictions, the subsequent nine characters will be the Federal Employer
Identification number of the licensee issued by the Internal Revenue Service. Jurisdictions
that establish fleet accounts shall identify each account with a fleet identifier in addition to
the carrier identification number.
P220 SOCIAL SECURITY NUMBERS
The Social Security number of an officer of the company may be used if the company
does not have a federal identification number.
*P230 CANADIAN IDENTIFICATION NUMBERS
Canadian jurisdictions will adopt a numbering system for the subsequent nine characters
which will meet their needs.
*P240 BASE JURISDICTION ASSIGNED NUMBERS
A licensee who refuses to give identification number information or is erroneously issued
an International Fuel Tax Agreement License without providing this information may be
given a base jurisdiction assigned number beginning with 90. This will become the
licensee's identification number for transmittal purposes until the correct information is
obtained. The same procedure will apply if the licensee has applied for, but not yet
received, his U.S. federal identification number. For audit purposes, the identity of the
base jurisdiction assigned number must be maintained after the correct number is
provided by the licensee.
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IFTA PROCEDURES MANUAL 8 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P200
P210, P230 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P240 jurisdictions outside of the United States.
P240 IFTA Ballot 2-1997 amended IFTA Procedures Manual Section P240 to provide that the assignment of a “90” prefixed
account number to a prospective IFTA licensee who refuses to give identification number information or is erroneously issued
a license is discretionary to the base jurisdiction and was effective January 1, 1998.
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IFTA PROCEDURES MANUAL 9 January 1996
Effective July 1, 1998
Last Revised January 2007
P300 LICENSE AND DECAL DESIGN
*P310 LICENSE
The IFTA license shall be approximately 3-1/2 x 8-1/2 inches (9 x 21.5 centimeters), of a
uniform format, and shall contain, but not be limited to, the following information:
.100 Base jurisdiction identification;
.200 Licensee's name and address and DBA, if different from owner, partner or
corporate name;
.300 Licensee's account identification number; and
.400 Expiration date (month, day and year).
*P320 DECALS
.100 Contents
Decals will be approximately 3 inches x 3 inches (7.5 centimeters x 7.5
centimeters) with white letters and a background color as specified for the
current year. The letters "IFTA" are to be a minimum of 3/4 inch (1.88
centimeters) in height and are to be incorporated into the decal with the letter I in
the upper left-hand corner, the letter A in the lower right-hand corner, and the
letters F and T to be incorporated in such a way as to constitute a diagonal
design on the decal. The two-letter jurisdiction designation shall be displayed in
the lower left-hand corner, and at least the last two numbers of the appropriate
year are to be displayed in the upper right-hand corner. Decals shall be
serialized. The serial number of each decal shall be no less than 3/16” high
(0.47625 centimeters) and shall be displayed between the two-letter jurisdiction
designation and the letter “A” of “IFTA”.
The coloring of the numbering shall be compatible with the background color as
determined by IFTA, Inc. There shall be no other printing on the decal unless
authorized by the IFTA, Inc. Board of Trustees.
.200 Materials
IFTA, Inc. shall set the standards for quality of ink, vinyl, type of font, and other
pertinent standards to insure uniformity and consistency among the jurisdictions.
IFTA, Inc. shall provide examples to all jurisdictions on an annual basis. Standards
must be set and examples distributed by IFTA, Inc. no later than one full year prior
to when the decals are required to be displayed.
IFTA PROCEDURES MANUAL 10 January 1996
Effective July 1, 1998
Last Revised January 2007
.300 Administrative Fees
The base jurisdiction may impose a decal fee to recover reasonable
administrative costs.
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IFTA PROCEDURES MANUAL 11 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P300
P310 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P320.100 jurisdictions outside of the United States.
P320.100 In July 1996, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 47-96, as narrative to
the IFTA Procedures Manual Section P320.100.
ISSUE: Is the requirement of displaying the last two numbers of the appropriate year in the upper right-hand corner of the IFTA decal
a minimum requirement?
BOARD INTERPRETATION:
The requirement to print the last two numbers of the appropriate year in the upper right-hand corner of the IFTA decal is a
minimum requirement only. The four numbers of the appropriate year may be printed on the IFTA decals.
P320.100 Ballot 8-2005 amended IFTA Procedures Manual Section P320.100 to require that decals be serialized and to set the
specifications for such serialization and was effective January 1, 2007.
P320.200 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate jurisdictions outside of
the United States.
P320.200 Ballot 6-2998 amended IFTA Procedures Manual Section P320.200 to require IFTA, Inc. to set decal standards and was
effective July 1, 2000.
P320.200 Ballot 1-2003 amended IFTA Procedures Manual Section P320.200 to state that IFTA, Inc. must provide examples of decals,
rather than samples, and to require that the specifications and examples be distributed to the member jurisdictions
by no later than one year prior to when the decals are required to be displayed and was effective October 10, 2003.
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IFTA PROCEDURES MANUAL 12 January 1996
Effective July 1, 1998
Last Revised January 2007
P400 POSTING BONDS
*P410 AMOUNT OF BOND
The total amount of the bond shall be fixed by the base jurisdiction and shall be equivalent
to at least twice the estimated average tax liability for the tax reporting period for which the
licensee will be required to file a tax return.
P420 SURETY BOND
A licensee required to post a bond may provide a surety bond in the amount determined
by the base jurisdiction.
*P430 SUBSTITUTES FOR SURETY BOND
In lieu of a surety bond, the licensee may deposit with the base jurisdiction one of the
following:
.100 Bonds
Bonds or other obligations of the United States or Canada, the base jurisdiction, or
any county or city of the base jurisdiction, having a market value not less than the
bond amount required and made payable to the base jurisdiction;
.200 Certificates of Deposit
Automatically renewable time certificates of deposit not exceeding the insured
amount, issued by a bank doing business in the base jurisdiction and insured by
the Federal Deposit Insurance Corporation or the Canadian Deposit Insurance
Corporation, made in the name of the depositor, payable to the base jurisdiction,
and containing the provision that interest earned shall be payable to the depositor
and that the certificate may only be canceled by written authorization from the base
jurisdiction;
.300 Investment Certificates or Share Account
Investment certificates or share accounts not exceeding the federally insured
amount, issued by a savings and loan association doing business in the base
jurisdiction, and insured by the Federal Savings and Loan Insurance Corporation.
Evidence of the insured account, either certificate or passbook, must be delivered
to the base jurisdiction, along with a properly executed assignment form whereby
the funds on deposit are assigned and made payable to the base jurisdiction;
IFTA PROCEDURES MANUAL 13 January 1996
Effective July 1, 1998
Last Revised January 2007
.400 Cash
Lawful money of the United States or Canada. Cash bonds must be submitted in
the form of a cashier's check, money order, or other certified funds which are
payable to the base jurisdiction; or
.500 Other Secure Obligations
Any other secure obligations deemed appropriate by the base jurisdiction to cover
the projected liabilities for all member jurisdictions.
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IFTA PROCEDURES MANUAL 14 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to P400
P410 IFTA Ballot 16-2004 amended the IFTA Procedures Manual to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
P430.100 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P430.200 jurisdictions outside of the United States
P430.400 See commentary at IFTA Procedures Manual Section P130 regarding amendments to accommodate
P430.500 jurisdictions outside of the United States.
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IFTA PROCEDURES MANUAL 15 January 1996
Effective July 1, 1998
Last Revised January 2007
P500 RECORDKEEPING
*P510 PRESERVATION OF RECORDS
.100 The licensee is required to preserve the records upon which the quarterly tax
return or annual tax return is based for four years from the tax return due date or
filing date, whichever is later, plus any time period included as a result of waivers
or jeopardy assessments.
.200 Failure to provide records demanded for audit purposes extends the four year
record retention requirement until the records are provided.
.300 Records may be kept on microfilm, microfiche, or other computerized or
condensed record storage system acceptable to the base jurisdiction.
P520 AVAILABILITY OF RECORDS
.100 Records shall be made available upon request by any member jurisdiction and
shall be available for audit during normal business hours.
.200 If records to be audited are located outside of the base jurisdiction, and the base
jurisdiction must send auditors to the place records are kept, the licensee may be
required to reimburse the base jurisdiction for reasonable per diem and travel
expenses of its auditors as authorized by law.
P530 NON-COMPLIANCE
.100 Failure to maintain records upon which the licensee's true liability may be
determined or to make records available upon proper request may result in an
assessment as stated in IFTA Articles of Agreement Section R1200.
.200 Non-compliance with any recordkeeping requirement may be cause for revocation
of the license. The base jurisdiction may defer license revocation if the licensee
shows evidence of compliance for future operations.
*P540 DISTANCE RECORDS
.100 Licensees shall maintain detailed distance records which show operations on an
individual-vehicle basis. The operational records shall contain, but not be limited
to:
.005 Taxable and non-taxable usage of fuel;
.010 Distance traveled for taxable and non-taxable use; and
IFTA PROCEDURES MANUAL 16 January 1996
Effective July 1, 1998
Last Revised January 2007
.015 Distance recaps for each vehicle for each jurisdiction in which the vehicle
operated.
.200 An acceptable distance accounting system is necessary to substantiate the
information reported on the tax return filed quarterly or annually. A licensee's
system at a minimum, must include distance data on each individual vehicle for
each trip and be recapitulated in monthly fleet summaries. Supporting information
should include:
.005 Date of trip (starting and ending);
.010 Trip origin and destination;
.015 Route of travel (may be waived by base jurisdiction);
.020 Beginning and ending odometer or hubodometer reading of the trip (may
be waived by base jurisdiction);
.025 Total trip miles/kilometers;
.030 Miles/kilometers by jurisdiction;
.035 Unit number or vehicle identification number;
.040 Vehicle fleet number;
.045 Registrant's name; and
.050 may include additional information at the discretion of the base jurisdiction.
*P550 FUEL RECORDS
.100 The licensee must maintain complete records of all motor fuel purchased,
received, and used in the conduct of its business.
.200 Separate totals must be compiled for each motor fuel type.
.300 Retail fuel purchases and bulk fuel purchases are to be accounted for separately.
IFTA PROCEDURES MANUAL 17 January 1996
Effective July 1, 1998
Last Revised January 2007
.400 The fuel records shall contain, but not be limited to:
.005 The date of each receipt of fuel;
.010 The name and address of the person from whom purchased or received;
.015 The number of gallons or liters received;
.020 The type of fuel; and
.025 The vehicle or equipment into which the fuel was placed.
*P560 TAX PAID RETAIL PURCHASES
.100 Retail purchases must be supported by a receipt or invoice, credit card receipt,
automated vendor generated invoice or transaction listing, or microfilm/microfiche
of the receipt or invoice. Receipts that have been altered or indicate erasures are
not accepted for tax-paid credits unless the licensee can demonstrate the receipt is
valid.
.200 Receipts for retail fuel purchases must identify the vehicle by the plate or unit
number or other licensee identifier, as distance traveled and fuel consumption may
be reported only for vehicles identified as part of the licensee's operation.
.300 An acceptable receipt or invoice must include, but shall not be limited to, the
following:
.005 Date of purchase;
.010 Seller's name and address;
.015 Number of gallons or liters purchased;
.020 Fuel type;
.025 Price per gallon or liter or total amount of sale;
.030 Unit numbers; and
.035 Purchaser's name (See R1010.300 of the IFTA Articles of Agreement).