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This would pertain to commercial businesses who import or bring fuel into a federally regulated province from any other province. Certain exceptions are listed below.
Registration is required in the following cases:
Registration in respect of that type of fuel would not cause registration as an importer if that type of fuel is brought into / imported into a federally regulated province in the form of:
Note: If a person is a retailer or a wholesaler and imports a quantity in excess of 200 litres of kerosene or propane, they are going to be treated as an importer and must register for carbon tax upon exceeding the threshold. They would then remit carbon tax to the Canada Revenue Agency. The charge to their customer would be a higher price, embedding the carbon tax into the price.
Note: Other fuel types do not have a minimum threshold. Fuels like Naphtha or butane are common examples of fuel that can be acquired in small quantities at retail outlets or imported into Canada. The importer of these products must be aware of the fuel charge and registration requirements. Registration was first available April 1, 2019.
A person can register as an importer voluntarily if:
Other Types of Registration
A person applying for registration as an importer may also qualify as:
Review these registration types to see if they apply to you.
A registered importer that imports fuel at a location in a federally regulated province or that brings fuel into a federally regulated province pays a fuel charge. This is like a self-assessment concept in sales tax.
The fuel charge becomes payable at the time the fuel is imported or brought into the federally regulated province by the registered importer.
Exception: the fuel charge is not payable by the registered importer on the fuel imported in the supply tank of a vehicle and that fuel is for use in operating the vehicle or an auxiliary component of the vehicle, or of an attached vehicle.
Example: ABC Co imports 2,000 10-litre packaged kerosene fuel containers — 20,000 litres of kerosene — using their own commercial vehicle from Alberta to Saskatchewan, a federally regulated province). The diesel fuel it has acquired in operating the commercial vehicle is not required to have a fuel charge accounted for under the program. ABC would be considered a registered importer of the kerosene as it is more than the 200-litre limit. ABC Co would not be considered an interjurisdictional road carrier in this example.
NOTE: This exception above does not apply if the fuel is a qualifying motive fuel and is brought into or imported into a federally regulated province by the person in a supply tank of a specified commercial vehicle of the person and they are:
This would mean if the person meets one of these conditions, they would have to remit a fuel charge on the fuel being used in the supply tank to bring in or import in the other fuel into a federally regulated province.
Example: XYZ Co is a registered distributor of diesel. It uses its own fleet of commercial vehicles and trailers to import and deliver the fuel in a federally regulated province. It was already required to be registered as a road carrier because it travels interjurisdictionally between listed and non-federally regulated provinces. It could not avoid remitting a fuel charge on the diesel fuel used in its vehicle supply (fuel) tanks.
It is registered both as a distributor and a registered carrier. It has two types of fuel charges to remit. A fuel charge on the fuel it distributes (except on fuel covered under an exemption certificate they have property obtained), and on the fuel used in the fleet fuel trucks used in a federally regulated province.
Fuel Charge Calculation
The fuel charge is A x B, where:
A = quantity of fuel on which the fuel charge is to be applied
B = the rate for that fuel type at the time the charge becomes payable
20,000 litres of kerosene x $0.0516 / litre = $1,032
This amount could be reduced further by any eligible rebates.
Note: A separate calculation is needed for
each federally regulated province.
This is saying the person transporting someone else’s fuel is not considered a registered importer. The person transporting the fuel may only have to be worried about being a registered carrier (road, rail, air or marine).
*Federally regulated provinces refer to Manitoba, New Brunswick, Ontario, Saskatchewan, Yukon and Nunavut as they are provinces that fall under the federal carbon tax because they do not have a provincial carbon tax. Alberta will fall under this program beginning January 1, 2020.
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