Virginia IFTA Compliance and Reporting Guide

The International Fuel Tax Agreement (IFTA) is a tax collection agreement for motor carriers operating in multiple jurisdictions. In Virginia, the program is administered by the Virginia Department of Motor Vehicles (DMV). Qualified motor vehicles are those used for the transportation of persons or property and have two axles with a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds, have three or more axles regardless of weight, or are used in combination when the weight of such combination exceeds 26,000 pounds. Carriers based in Virginia must file a consolidated quarterly fuel tax report with the DMV to distribute fuel taxes to the various states and provinces in which they traveled. Accurate distance and fuel records are required to calculate the tax liability for each jurisdiction. DispatchTool helps Virginia carriers maintain compliance by automatically generating IFTA-ready reports based on truck-safe routing and fuel purchase entries, reducing the time spent manually tallying receipts and odometer readings. You can create a DispatchTool account to begin organizing your quarterly data for the Virginia DMV. Proper documentation is essential, as the Virginia DMV requires carriers to retain all fuel and distance records for a minimum of four years for audit purposes, as outlined in the IFTA Articles of Agreement.

Registration and Licensing Requirements

To register for IFTA in Virginia, a carrier must have an established place of business in the Commonwealth where all operational records are maintained or can be made available. You must submit Form IFTA 20, the Virginia IFTA Licensing Application, to the DMV. There is no fee for the IFTA license itself, but Virginia charges $1.00 per set of two decals for each qualified motor vehicle. These decals are valid for one calendar year, from January 1 through December 31. Carriers must display one decal on each side of the vehicle's exterior. If you are a new carrier, you must have a valid USDOT number and a Federal Employer Identification Number (FEIN) or Social Security Number before applying.

Quarterly Filing Deadlines and Penalties

Virginia IFTA tax returns must be filed quarterly. The deadlines are April 30 for the first quarter (Jan-Mar), July 31 for the second quarter (Apr-Jun), October 31 for the third quarter (Jul-Sep), and January 31 for the fourth quarter (Oct-Dec). If the deadline falls on a weekend or legal holiday, the return is due the next business day. Failure to file by the deadline results in a penalty of $50.00 or 10% of the net tax due, whichever is greater. Furthermore, interest is charged on all late payments at a rate of 1% per month, as specified by IFTA R1220. The Virginia DMV provides an online portal, the Virginia IFTA Web System, for electronic filing and payment.

Virginia Specific Tax Rates and Surcharges

Virginia applies a motor vehicle fuels tax that varies by fuel type. As of 2024, the tax rate for diesel fuel is $0.308 per gallon, while gasoline is taxed at $0.298 per gallon. Additionally, Virginia imposes a specific surcharge for heavy vehicles under the Road Tax (Virginia Code § 58.1-2701). This road tax surcharge is currently $0.035 per gallon for diesel. When filing, carriers must account for both the base tax and the surcharge for all miles traveled within Virginia. These rates are subject to change annually on July 1 based on the Consumer Price Index, so carriers must verify current rates via the DMV or IFTA Inc. website before finalizing their quarterly returns.

Distance and Fuel Recordkeeping Standards

The Virginia DMV requires detailed Individual Vehicle Distance Records (IVDR). Each record must include the trip start and end dates, trip origin and destination, the routes of travel (highway numbers), beginning and ending odometer readings, and the total distance traveled in each jurisdiction. For fuel records, you must maintain original receipts or invoices showing the date of purchase, name and address of the seller, number of gallons purchased, fuel type, and the price per gallon. If you utilize bulk storage in Virginia, you must maintain separate records for withdrawals and deliveries. According to the ATRI, improper recordkeeping is one of the most common causes of audit assessments, which can lead to significant back-taxes and interest.

Exemptions and Non-IFTA Miles

While most miles on public highways are taxable, some jurisdictions allow for specific exemptions. In Virginia, all miles traveled on public highways by a qualified motor vehicle are generally taxable. However, miles traveled on private property or off-road may be non-taxable in certain other IFTA jurisdictions. It is important to note that even if miles are exempt in one state, they must still be reported as total miles on the Virginia IFTA return to ensure the fuel economy (MPG) calculation is accurate. Virginia does not typically exempt miles for government-owned vehicles or charitable organizations from IFTA requirements if they meet the weight thresholds, unlike some neighboring states.

Renewals and Grace Periods

The Virginia IFTA license renewal period begins in October each year. Carriers must be in good standing, with all previous quarterly returns filed and all taxes paid, to receive new decals. Virginia provides a two-month grace period (January and February) for the display of current year decals, provided the carrier has submitted their renewal application by December 31. During this grace period, the previous year's decals remain valid. However, if you have not applied for the new year's decals by December 31, you are not eligible for the grace period and can be cited for operating without valid credentials starting January 1.

Sources

Virginia Department of Motor Vehicles (DMV) (2024) — https://www.dmv.virginia.gov/commercial/motor-carrier/ifta IFTA, Inc. Articles of Agreement (2024) — https://www.iftach.org/ Code of Virginia § 58.1-2701 (2024) — https://law.lis.virginia.gov/vacode/title58.1/chapter27/section58.1-2701/

Frequently asked

What is the penalty for late IFTA filing in Virginia?

The penalty is $50.00 or 10% of the total tax due, whichever is higher. Additionally, interest is calculated at 1% per month until the balance is paid.

How long must I keep my fuel receipts in Virginia?

You must retain all fuel receipts and distance records for 4 years from the filing date of the tax return for which the records were kept.

Can I file my Virginia IFTA return by mail?

While Virginia encourages electronic filing through the DMV website, paper filings (Form IFTA 100 and IFTA 101) are still accepted, though they often take longer to process.

What is the current Virginia diesel tax rate?

As of mid-2024, the Virginia diesel tax rate is $0.308 per gallon, plus a $0.035 per gallon road tax surcharge for heavy vehicles.

How much do IFTA decals cost in Virginia?

Virginia charges $1.00 for a set of two decals per vehicle. There is no separate fee for the IFTA license itself.