Budget 2019 was introduced in the Alberta Legislature on October 24, 2019. To further deter tobacco use and ensure tobacco tax rates keep up with inflation, Budget 2019 includes a tax increase on tobacco products. Tobacco taxes decrease the affordability of tobacco products, encouraging current users to quit and deterring non users from ever starting.
The tobacco tax increase is effective at 12:01 a.m. on October 25, 2019. The tax on a carton of 200 cigarettes will be increased by $5 to $55 per carton. The tax on loose tobacco will rise to 41.25 cents per gram, and the tax on cigars will be increased to 142% of the taxable price of the cigar, with a minimum tax per cigar of 27.5 cents and a maximum of $8.61. Registered tobacco tax collectors are expected to comply with these changes.
See Special Notice Vol. 3 No. 17, Tobacco Tax Rate Increase, or the Budget 2019 Tax Plan (PDF, 7.5 MB) for more information.
Bill 1, An Act to Repeal the Carbon Tax, received Royal Assent on June 4, 2019. Alberta The carbon levy no longer applies to any type of fuel effective as of the beginning of the day on May 30, 2019. Fuel sellers are expected to comply with the changes set out in the Bill.
See the updated Fuel Tax and Tobacco Tax Rate Chart and AITE Special Notice Vol. 4 No. 16 – Repeal of the Carbon Levy for more information.
Contact Tax and Revenue Administration (TRA) if you have any questions related to the administration of the carbon levy.
Contact Canada Revenue Agency (CRA) if you have questions related to the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (Canada).
The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.
The Alberta Indian Tax Exemption (AITE) program consists of:
- An exemption from taxes and levies for eligible consumers and bands at the time of purchase on:
- fuel products purchased on reserve in Alberta or delivered to reserve
- tobacco products purchased on reserve in Alberta
- accommodation purchased on reserve in Alberta
- A refund of the Alberta fuel tax and carbon levy on fuel to fuel sellers when the fuel is sold or delivered to eligible consumers on reserve in Alberta.
- A refund of the Alberta tobacco tax on tobacco products sold by retailers to eligible consumers on reserve in Alberta.
- A refund of the Alberta tourism levy to operators that provide accommodation on reserve to eligible consumers.
- Information for tobacco wholesalers and fuel suppliers that provide products to registered retailers making tax-exempt sales to eligible consumers.
Definition of the AITE card
The AITE card is issued by Tax and Revenue Administration (TRA) to eligible consumers and bands. This card must be presented to the retailer or accommodation operator at the time of purchase to show the retailer that the fuel, tobacco or accommodation may be sold to the cardholder exempt from tax or levy.
You are an eligible consumer, and may apply for an AITE card, if:
- you are an “Indian”, as defined in the Indian Act (Canada), who is 16 years of age or older
- you are a “band”, as defined in the Indian Act (Canada), whose reserve is partially or totally located in Alberta
- you are a band whose band office is located in Alberta
No incorporated entity is eligible for the AITE program.
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To submit your forms
Forms cannot be sent through email. Complete and print your forms and bring, mail or fax them to TRA.
Apply for an AITE card
Step 1: Fill out the AITE Declaration form
- Complete the Alberta Indian/Indian Band Declaration (AT4805) (PDF, 138 KB) and print it.
Step 2: Apply
- Bring, mail or fax your completed declaration form to TRA.
Step 3: After you apply
- When your application is approved, TRA will mail your AITE card to the address indicated on the declaration form.
If you need a replacement card
- Complete and submit a new Alberta Indian/Indian Band Declaration (AT4805) (PDF, 138 KB) to receive a replacement card if your name has changed, or when your card:
- is lost or believed to be stolen (notify TRA immediately if this occurs)
- has expired and a replacement card was not received
- has been cancelled
- is damaged
Get a tax or levy refund
How to get a carbon levy refund
Eligible consumers may apply for a refund when the carbon levy was paid in error. Carbon levy refund applications must be received within 4 years from the end of the year in which the fuel was purchased.
Step 1: Complete and submit the claimant registration
- Complete the Carbon Levy Claimant Registration – Indian or Indian Band form (AT5133) (PDF, 1.5 MB) and bring, mail or fax your completed registration form to TRA.
Step 2: Register for TRACS
- Complete the TRACS Enrolment Request to enrol in TRACS or contact TRA.
- Visit the TRACS page for more information.
Step 3: Complete the refund application
- Complete the carbon levy claimant refund application in your TRACS account.
Step 4: Receive your refund
- Receive your refund by direct deposit or cheque.
How to get a refund of fuel or tobacco tax or tourism levy
Eligible consumers may apply for a refund when the tax or levy was paid in error. Refund applications for fuel or tobacco tax or tourism levy must be received within 3 years from the end of the year in which the purchase took place.
To apply for a refund of tax or levy paid in error, submit a written request to TRA with the following information:
- when the purchase took place
- the supplier or tourism operator that charged the tax or levy
- the location of the purchase or where the fuel was delivered
Who can provide the exemption?
Fuel or tobacco retailers wanting to provide the AITE to eligible consumers must be:
- located on a reserve in Alberta
- a fuel seller that delivers fuel to eligible consumers located on reserve in Alberta
Accommodation operators wanting to provide the AITE to eligible consumers must be:
- providing the accommodation on reserve in Alberta
- registered with TRA under the Tourism Levy Act. See Tourism Levy for more information on how to register and collect the tourism levy.
Sale of tobacco exempt of tobacco tax
Black stock tobacco is cigarettes, tobacco sticks and fine-cut tobacco that has a federal stamp indicating that duty has been paid, but does not have an Alberta stamp. In Alberta, black stock is sold to eligible consumers by AITE retailers and in duty-free shops.
Registered AITE retailers must:
- purchase black stock tobacco tax included (cigarettes or fine-cut tobacco) from wholesalers with an Alberta tobacco tax licence
- sell black stock to eligible consumers, that present their AITE card at the time of purchase, from a location located on reserve in Alberta
- sell Alberta stamped tobacco product to all other consumers
- apply weekly for a refund for all tax-exempt sales using an approved Point of Sale System (POSS) (AITE Direct)
For more information regarding the sale of tobacco to eligible consumers, see Information Circular AITE 3 – Exemptions Under the AITE Program.
Federal law prohibits the sale of tobacco to anyone under 18 years of age, including individuals with an AITE card.
Sale of fuel exempt of fuel tax and carbon levy
Registered AITE fuel sellers may sell clear gasoline or diesel fuel, and propane for motive purposes, to eligible consumers, exempt from the fuel tax and carbon levy.
All fuel purchased by an AITE fuel seller is purchased with the tax and carbon levy included.
Apply weekly for a refund for all tax and carbon levy exempt sales, using an approved Point of Sale System (POSS) (AITE Direct).
Register as an AITE retailer
Step 1: Fill out the AITE Retailer Registration form
Complete the following forms and print a copy of each:
- AITE Registration (AT4804) (PDF, 835 KB) for tobacco sales and diesel, gasoline and propane for motive use fuels
- Application for Direct Deposit (AT4812) (PDF, 174 KB)
- Contact a certified software vendor from the Vendors Offering Secure File Transfer Protocol (SFTP) Service listing.
- Carbon Levy Registration – AITE Retailer (Fuels other than Gasoline, Diesel or Propane for Motive Use) (AT5201) (PDF, 1.4 MB)
Step 2: Make a copy of the Band Council Resolution
- The Band Council Resolution must give authority to operate on the respective reserve.
Step 3: Submit documents
- Bring, mail or fax your completed AITE Retailer Registration (AT4804), a copy of the Band Council Resolution, Application for Direct Deposit (AT4812), and void cheque to TRA.
Step 4: Review and sign Exempt Sale Retailer Agreement
- TRA will send you a copy of an Exempt Sale Retailer Agreement (the Agreement).
- Review the conditions outlined in the Agreement.
- An authorized signing representative must sign and date the document in the presence of a witness, who must also sign the Agreement.
- Bring, mail or fax your signed Agreement to TRA.
Step 5: Once approved
- You will receive an approval letter and a copy of the Agreement signed by a TRA representative by mail.
- POSS set up and confirmation from vendor.
Apply for an AITE retailer refund
Point of Sale System (POSS)
On a daily basis, TRA receives the details of the retailer’s tobacco and/or fuel sales. The POSS is then updated of cardholder changes and purchases-to-date information about individual cardholders.
Each Sunday, TRA totals the daily information received during the week and creates a claim.
Once the claim is approved, a refund will be generated and will be directly deposited into the retailer’s bank account within a few days.
You must maintain and provide upon request proper records, including purchase invoices, sales invoices, vouchers and other supporting documents for at least 4 years.
Step 1: Complete the refund application
- The AITE retailer or fuel seller fills out an AITE Retailer Refund Application (AT4818) (PDF, 1.4 MB).
Step 2: Submit the refund application
- Bring, mail or fax your completed refund application to TRA.
Step 3: Receive your refund
- After your claim has been assessed you will receive your refund by direct deposit.
- Complete an Application for Direct Deposit (AT4812) (PDF, 174 KB).
- Submit the form to TRA along with a copy of a “VOID” blank cheque.
- Funds will only be deposited into one bank account.
Carbon levy inventory declaration
The 2019 Carbon Levy Online Inventory Declaration was required to be received by Tax and Revenue Administration (TRA) not later than July 2, 2019. Declarations are no longer being accepted.
TRA will review the inventory declaration if it was received on or before July 2, 2019.
If the inventory declaration is approved, TRA will issue a refund by cheque payable to the legal name provided and mail it to the address provided on the inventory declaration.
For more information, refer to:
- Information Circular CL-ID-7R1 – Carbon Levy Inventory Declaration
- Special Notice Vol. 11 No. 15 – 2019 Carbon Levy Inventory Declaration (May 2019)
How to pay
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:
- view the status of submitted claims
- submit documents
- view status of prior assessments, financial details and letters of assessment and notices of reassessment (if available)
- access financial information and view account period balances
- update address and contact information
- delegate account access to other employees or authorized individuals
- view reports including cancelled cards, rejected sales and variance report
For more details, instructional videos and to log in to your TRACS account, see TRACS information.
Tax and levy rates
- Combined chart: Fuel tax and tobacco tax (effective Monday, October 28, 2019)
- Combined chart: Fuel tax, carbon levy and tobacco tax (archived)
- Current and historical tax and levy rates and prescribed interest rates
Publications and forms
These documents discuss procedural matters and administrative policies and practices for programs administered by TRA. They are updated as necessary and a revision number assigned.
Cross-program information circulars
- TRA-1R1 – An Introduction to Tax and Revenue Administration (March 2018)
- TRA-2 – TRA Fairness and Service Pledge (July 2018)
- TRA-3 – Alberta Commodity Tax Acts – Voluntary Disclosure (November 2018)
AITE information circulars
- AITE-1R4 – Alberta Indian Tax Exemption Program (February 2019)
- AITE-2R8 – Tax-Exempt Purchases Made by Eligible Consumers (February 2019)
- AITE-3R8 – Exemptions under the AITE Program (February 2019)
- AITE-4R8 – Offences and Penalties (February 2019)
- AITE-5R9 – Tax Rate Changes (February 2019)
- AITE-6R5 – Records and Records Retention (February 2019)
Carbon levy information circulars
- CL-T-3 – Transportation Fuels – Exemptions and Licences (November 2016)
- CL-T-4 – Transportation Fuels – Refunds and Rebates (December 2016)
- CL-OF-3 – Other Fuels – Exemptions and Licences (November 2016)
- CL-NG-3 – Natural Gas (Heating Purposes) – Exemptions (November 2016)
These documents are used to announce changes to the legislation administered by TRA, or changes to administrative policies and practices carried out by TRA. These notices are time-specific, and meant to be transitory in nature. The information may eventually be incorporated into other publications, such as information circulars or web content.
AITE special notices
- Vol. 4 No. 16 – Repeal of the Carbon Levy (May 2019)
- Vol. 4 No. 15 – Tobacco Tax Calculations for AITE Exempt Sale Retailers (June 2007)
- Vol. 4 No. 14 – Purchase of Tobacco from Licensed Wholesalers (March 2005)
- Vol. 4 No. 12 – Sales of Black Stock Tobacco to Ineligible Persons (June 2004)
Carbon levy special notices
- Vol. 11 No. 15 – 2019 Carbon Levy Inventory Declaration (May 2019)
- Vol. 11 No. 14 – Repeal of the Carbon Levy (May 2019)
Tobacco tax special notices
- Vol. 3 No. 17 – Tobacco Tax Rate Increase (October 2019)
- Vol. 3 No. 16 – Reporting for Flavoured Tobacco Products (June 2015)
If you have trouble opening fillable PDF forms, see the form instructions.
- AT4804 – Alberta Indian Tax Exemption Retailer Registration (PDF, 835 KB) (March 2018)
- AT4805 – Alberta Indian / Indian Band Declaration (PDF, 138 KB) (August 2018)
- AT4812 – Application for Direct Deposit (PDF, 174 KB) (April 2017)
- AT4818 – Alberta Indian Tax Exemption Retailer Refund Application (PDF, 1.4 MB) (October 2016)
- AT4762 – Notice of Objection (PDF, 115 KB) (July 2017)
- AT4930 – Alberta Consent Form (PDF, 268 KB) (August 2012)
- AT5133 – Carbon Levy Rebate – Claimant Registration, Indian or Indian Band (PDF, 1.5 MB) (February 2017)
- AT5201 – Carbon Levy Registration – AITE Retailer (Fuels other than Gasoline, Diesel, or Propane for Motive Use) (PDF, 1.4 MB) (December 2016)
Sign up for updates
To submit forms
Please note: forms cannot be sent through email. Complete and print your forms and bring, mail or fax them to:
Tax and Revenue Administration
Alberta Treasury Board and Finance
9811 109 Street NW
Edmonton, Alberta T5K 2L5