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Part of Fuel tax

Fuel tax – Fuel sellers

Information for fuel sellers on how to register, report, apply for a refund or pay fuel taxes in Alberta.

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Fuel tax

Important notices

Postal strike and TRA requirements

Regardless of a postal delay, taxpayers and other entities required to make filings and payments with Tax and Revenue Administration (TRA) are still responsible to ensure those obligations are met. All applicable penalties and interest will continue to apply.

For more information about your obligations when a mail disruption occurs including electronic filing and payments, refunds, mail, and courier options, read: Special Notice Vol.8 No.7 – Mail Disruption Contingency Plan for all Programs

Overview

In Alberta, fuel tax is generally reported and remitted by importers, and by refiners and large wholesalers designated as full direct remitters (FDR). Fuel tax is charged at the time fuel is imported or when fuel is removed from a refinery or terminal in Alberta.

Each recipient in the distribution chain recovers the fuel tax from the party they sell fuel to, continuing until the end consumer pays the tax. Fuel tax is included in the per-litre sale price at the pump.

See Information Circular FT-1 – Overview of the Alberta Fuel Tax Program for more information.

Definition of fuel seller

A fuel seller includes anyone that sells or otherwise supplies fuel with or without receiving consideration (for example, retailer, wholesaler, bulk dealer, reseller, producer, refiner, manufacturer, importer, exporter, etc.).

Fuel tax

Fuel is subject to fuel tax when it is imported, or when it leaves a refinery or terminal, and is sold to a person other than an FDR and is not intended for delivery to a refinery or terminal. See Tax, levy and prescribed interest rates for a complete listing of all fuel tax rates.

Allowable tax-out transactions

No Alberta fuel tax is payable when:

  • An FDR sells fuel to another FDR. See the list of Registered and Approved Full Direct Remitters.
  • Fuel is imported for delivery to an FDR operating a terminal or refinery who will report these volumes and remit the applicable tax on their return.
  • Clear gasoline, clear diesel, propane, or aviation fuel is sold to a consumer eligible to purchase fuel exempt from tax if the purchaser provides evidence of eligibility. See Information Circular FT-4 – Alberta Fuel Tax Exemptions, Refunds and Rebates.
  • Locomotive fuel is sold to a registered railway for use in a railway locomotive.
  • Bunker fuel, kerosene, methanol and condensate are sold, unless the fuel is consumed for motive purposes in an internal combustion engine.
  • Fuel sold is for direct export from Alberta in bulk. For more information, see Information Circular FT-2: Information for Direct Remitters, Fuel Sellers and Other Recipients.
  • Renewable fuel is sold to a renewable fuel producer.
  • Fuel is sold to an eligible consumer on reserve in Alberta. See Alberta Indian Tax Exemption (AITE) for more information about how to register to sell tax-exempt fuel on reserve in Alberta.
  • Foreign commercial carriers on international flights originating in Alberta are exempt from the fuel tax at the time of purchase.

Partial exemption on marked fuel

Marked gasoline and marked diesel are taxed at a lower rate than clear fuel when sold to another fuel seller or eligible consumers. FDRs may also sell marked fuel to another FDR exempt from fuel tax.

For more information regarding the partial exemption from fuel tax, see:

When to register

In Alberta, an entity must register to:

  • file fuel tax inventory declarations
  • produce or refine fuel including renewable fuel (excluding kerosene, methanol, bunker fuel or condensate)
  • operate a terminal or act as a position holder within a terminal operated by another person
  • sell fuel, or remove their own fuel, from a refinery or terminal
  • import fuel into Alberta for resale
  • import fuel in bulk as a consumer
  • sell aviation fuel
  • sell fuel exempt from tax including marked fuel
  • mark fuel (see Fuel tax – Marked fuel for more information)
  • rebrand fuel including:
    • reclassify a type of fuel
    • change a fuel to another type of fuel or to a non-taxable product
    • change a non-taxable product that was originally a fuel back to a taxable fuel
  • export fuel from Alberta in bulk
  • sell kerosene, bunker fuel, methanol or condensate in bulk
  • use locomotive fuel in Alberta
  • sell fuel dye for use in Alberta
  • produce or distribute propane (see Fuel tax – Propane for more information)
  • apply for a refund or rebate of fuel tax
  • sell propane to motive consumers in Alberta (see Fuel tax – Propane for more information)

Eligibility for rebate or refund

A fuel seller may apply for a refund of fuel tax when:

  • a verifiable quantity of fuel was stolen or destroyed
  • the fuel could not be sold due to contamination
  • the fuel seller sold the fuel on credit to another fuel seller and all or a portion of the debt for the sale is a bad debt
  • the fuel is rebranded to a fuel with a lower fuel tax rate
  • fuel is exported from Alberta in bulk

For more information, see:

How to register

To register to file fuel tax inventory declarations, see Inventory Declaration.

Both remitters and claimants are required to complete the online Fuel Tax Registration. See When to register to determine if a registration is required.

For detailed step-by-step instructions, see:

Step 1. Create or log in to your Alberta.ca Account

  • Create a basic account or log in to your Alberta.ca Account.

Log in to Alberta.ca Account

Step 2. Sign in and select Program Registration

  • After you create an Alberta.ca Account, log in to TRACS. You will need to sign in using your Alberta.ca Account user name and password. Once you log in, you will be redirected to TRACS.
  • Select 'Program Registration'.
  • Select 'Fuel Tax' from the Program Name menu.

Step 3. Complete and submit the registration form

After you submit your registration, you will receive a pending status notification and a reference number. TRA may need to contact you for further information.

Step 4. Once approved

You will be notified by email that your approval letter or exemption certificate is available in your TRACS account.

How to file

To file fuel tax inventory declarations, see Inventory Declaration.

The Alberta fuel tax return must be received by TRA on or before the 28th day of the month following the period end. A return must be filed for each calendar month, whether or not activity occurred.

A claim for a refund of fuel tax paid must be received by TRA not later than 3 years from the end of the year in which the fuel purchased occurred. The claim is filed monthly as needed.

Step 1. Complete the return or claim in TRACS

Step 2. Submit your return or claim

  • Submit the return/claim in TRACS and print or save the confirmation page for your records.
  • You will be charged a penalty if you file your return late.

Step 3. Remit the amount owing or receive your refund

  • Remit the amount owing – see Making payments.
    • Interest will be charged on late remittances and will accrue until the balance is paid in full.
  • For claims, you will receive your refund by direct deposit – see Set up direct deposit.
  • If there were changes made to your return or a balance is owing, a notice of assessment will be available in your TRACS account under View Assessment Status.

Inventory declaration

Register and submit in TRACS

When fuel tax rates change, fuel sellers (for example, retailers, wholesalers) must file an inventory declaration through TRA Client Self-Service (TRACS). To file an inventory declaration, fuel sellers must be registered with TRA under the fuel tax program.

For instructions on how to register and file, see:

Due dates

When a fuel tax rate increases, an inventory declaration must be filed and tax owing on the respective fuel must be remitted within 30 days following the day of the rate change.

When a fuel tax rate decreases, fuel sellers may apply for a refund of the applicable tax paid by submitting an inventory declaration within one year following the day of the rate change. Visit ‘Set up direct deposit.’

How to pay

Set up direct deposit

  • Log in to your TRACS account.
  • Select 'Manage Direct Deposit'.
  • Enter your banking and contact information.
  • Click 'Submit'.
  • For an instructional video, see TRACS videos.

Maintain your account in TRACS

TRA Client Self-Service (TRACS) is a secure online system for authorized Tax and Revenue Administration (TRA) clients to conveniently conduct business with TRA. You can do the following tasks in TRACS:

  • file a return/claim
  • submit documents
  • file a Notice of Objection
  • manage direct deposit
  • view reports
  • confirm receipt and completion of submitted returns/claims
  • view status of prior assessments, financial details and notices of assessment
  • access financial information and view account period balances
  • update address and contact information
  • delegate account access to other employees or authorized individuals
  • request for waiver of penalties and interest

For more details, instructional videos and to log in to your TRACS account, see TRACS information.

Authorize a representative

An individual with proper authorization for the business may consent to the release of confidential information about account(s) with TRA to a specific firm and/or individual.

An individual with proper authorization for the business includes a(n):

  • owner
  • partner of a partnership
  • corporate director
  • trustee of an estate
  • individual with delegated authority

Step 1. Fill out the Alberta Consent Form

Step 2. Submit the consent form

  • Submit your completed consent form to TRA.

Step 3. Representative receives PIN (only for TRACS access)

  • TRA will review the consent form to ensure it is complete.
  • TRA will issue a PIN number to the individual via secure email. TRACS access can only be provided to an individual.

The representative must enter the PIN and account number to access the TRACS account. See How to access TRACS for instructions.

File a waiver request

TRA recognizes there may be circumstances beyond a person’s control that prevent the person from complying with filing and payment obligations imposed under the Fuel Tax Act.

In such circumstances, TRA may exercise its discretion to waive or cancel all or any portion of penalties or interest that have been assessed.

Step 1. Log in to your TRACS account

  • Select ‘Waiver request – Penalties & Interest’ from ‘Account Actions’.
  • If you do not have access to your account in TRACS, complete the TRACS Enrolment Request.

Step 2. Complete and submit the waiver request

  • Complete all required fields.

Step 3. Receive decision

  • TRA will review your waiver request. We may contact you for additional information.
  • You will receive the written decision by secure email.

Publications, forms, videos

Fillable PDF forms may not open properly on some mobile devices and web browsers. For help opening the forms, contact PDF form technical support.

Legislation

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Contact

Connect with Tax and Revenue Administration:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-3044
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

Related

Previous Fuel consumers
Next Alberta Indian Tax Exemption