Fuel tax – Marked fuel

Overview

Marked fuel is diesel or gasoline fuel coloured to a concentration of 14 parts per million of red dye. This fuel is partially tax-exempt to eligible consumers.

The fuel tax rate on marked fuel is 4 cents per litre, which is 9 cents per litre lower than the 13 cents per litre on clear fuel.

All fuel sellers, except full direct remitters, must purchase marked fuel including fuel tax.

Who can purchase marked fuel

In Alberta, marked fuel may be purchased by:

• eligible farmers for farming operations in Alberta that have an active Alberta Farm Fuel Benefit (AFFB) exemption number
  • how to apply for an AFFB exemption
• commercial and government entities (other than the Government of Canada) that have a Tax Exempt Fuel User (TEFU) exemption certificate for use in unlicensed equipment or for heating purposes
  • how to apply for a TEFU exemption certificate or fuel tax rebate

How to apply

Complete the following steps if you are applying to:

• sell marked fuel
• acquire marked fuel for export
• dye fuel

For detailed step by step instructions, see:

• How to complete the Fuel Tax registration (video) – February 2022
• Fuel Tax Registration Instruction Guide – August 2024

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

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

Log in to Alberta.ca Account

Step 2. Sign in and select 'Program Registration'

• After you create an Alberta.ca Account, login 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 online 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 is available in your TRACS account.

Report marked fuel transactions

If approved, an entity is required to electronically file all consumer sales transactions and all marked fuel movements (inventory, imports, acquisitions, dispositions and exports) on a monthly basis.

Step 1. Submit your consumer sales transactions

• Online: login to your TRACS account and select “Create AFFB/TEFU Sales” from the menu. Enter the sale details and select “Submit” when all of the transactions have been entered.
• SFTP: contact TRA to set up electronic filing using Secure File Transfer Protocol (SFTP), a method of transferring files between two remote systems. This method of filing is beneficial if you have large volumes of sales records to report each month and data entry is not feasible.

Step 2. Submit all marked fuel movements

• Online: login to your TRACS account and select either “Create Acquisitions and Imports” or “Create Dispositions and Exports” from the menu. Enter fuel movement transaction details of the fuel movement and select “Submit’ when done.
• SFTP: if you have been set up for SFTP for consumer sales transactions, then you can also submit files for inventory, import, acquisition, disposition and transactions. Contact TRA if you are interested in finding out more information about filing using SFTP.

Eligibility to dye fuel

Clear fuel may be dyed at any point in the distribution chain including a refinery, terminal, bulk storage facility, or at the pump (including card lock sites and on-truck marking). Other than a full direct remitter, businesses approved to dye fuel must purchase clear fuel tax-included and apply for a refund of tax in TRACS.

See Information Circular FT-4 – Alberta Fuel Tax Exemptions, Refund and Rebates for more information.

TRA will consider registering a business to dye clear fuel for the purpose of resale if all of the following criteria are satisfied:

• The business is in full compliance with all tax filings at the time the application(s) is made (if applicable).
• Each location where fuel dyeing will occur must:
  • have a metered mechanical dye injector system
  • restrict access to marked fuel to eligible consumers (for example: the consumer has a valid Alberta Farm Fuel Benefit (AFFB) or Tax Exempt Fuel User (TEFU) number)
  • prevent unauthorized access to the dye and dye injector system
  • have security seals in place to prevent or indicate tampering
  • have a ratio of one dye injector to one marked fuel pump
• The business agrees to meet annual reporting requirements, including the reporting of dye concentrate volumes using the Dye Stock Report (AT4984) for each site. This report is to be uploaded using the Submit Documents in TRACS shortly after filing the return/claim for the December period end.

How to apply for a refund

Step 1. Complete the claim in TRACS

• Log in to your TRA Client Self-Service (TRACS) account and select 'File a Return/Claim'.

Claims can be filed online either by:

• web form (data-entry)

or

• XML file upload

For more information about filing using the XML file upload process, see XML Upload Requirements for Submitting Fuel Tax Returns and Claims.

Step 2. Submit your claim

• Submit the claim in TRACS and print or save the confirmation page for your records.

Step 3. Receive your refund

• Refunds will be issued by direct deposit. (See Set up direct deposit)
• If there were changes made to your claim, a letter of assessment will be available in your TRACS account under View Assessments.

Set up direct deposit

• Log in to your TRACS account.
• Select 'Manage Direct Deposit'.
• Enter your banking information and contact information.
• Click 'Submit'.

For an instructional video, see TRACS videos.

Managing your account in TRACS

Tax and Revenue Administration (TRA) is no longer processing phone or email requests for basic account information.

Account owners or their representatives can access most of the information related to their account in Tax and Revenue Administration Client Self-Service (TRACS) portal.

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:

• confirm receipt and completion of submitted claims
• view monthly inventory summary and sales summary reports
• report marked fuel transactions
• check AFFB/TEFU eligibility
• view status of prior assessments, financial details and notices of assessment and reassessment
• 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.

How to 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

• Complete the Alberta Consent (excluding Corporate Income Tax) Form (AT4931).

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 e-mail. TRACS access can only be provided to an individual.

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

Publications, forms, videos

Legislation

• Fuel Tax Act and Regulations

Sign up for updates

Subscribe to TRA's publications and announcements

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

• Other programs administered by Tax and Revenue Administration
• Fuel tax rates