Bill 1, An Act to Repeal the Carbon Tax, received Royal Assent on June 4, 2019. 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.

For more information related to direct remitters, licence or exemption certificate holders, see Special Notice Vol. 11 No. 14 – Repeal of the Carbon Levy.

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).

Overview

Carbon levy is remitted and reported by:

  • natural gas distributors

OR

  • a person that removes natural gas from a transmission pipeline for their own use, or for resale

Carbon levy on natural gas

Not subject to carbon levy

Trading or selling natural gas within a transmission pipeline is not subject to the carbon levy, if the natural gas is sold but not delivered.

When the carbon levy is triggered

Carbon levy is triggered at the time fuel is removed, in Alberta, from a transmission pipeline – unless the fuel is moved into a natural gas distribution system or straddle plant.

Where fuel is removed from a transmission pipeline, but does not enter a natural gas distribution system or straddle plant

  • the person that purchases or otherwise receives the fuel is responsible for remitting the carbon levy to Tax and Revenue Administration (TRA)

Where fuel is removed from a transmission pipeline, and enters a natural gas distribution system or straddle plant

  • the seller is not required to collect or remit the carbon levy, nor obtain or verify a carbon levy exemption, licences or other evidence of exemption as there is no carbon levy payable on the sale

When natural gas that is in a natural gas distribution system is delivered to a consumer

  • the natural gas distributor is responsible for calculating and remitting the carbon levy

For more information, refer to these Special Notices:

Distributors and producers

Natural gas distributors

A natural gas distributor is a person that measures a recipient’s natural gas consumption on a regular basis and provides a retail dealer or natural gas service provider with the recipient’s billing information.

A natural gas distributor is a direct remitter and responsible for remitting and reporting the carbon levy payable.

For more information regarding the registration and filing requirements of a natural gas distributor, see the following information circulars:

Natural gas producers or gas gathering system operators

Operators who subsequently sell or remove natural gas from a gas well or gas gathering system – including for their own use – are required to register and report the carbon levy used or sold. This includes own use by a producer or operator that has a carbon levy exemption certificate.

These operators are direct remitters and responsible for reporting the carbon levy payable, even if the end use is exempt from carbon levy.

For more information regarding the registration and filing requirements of a natural gas producer or operator:

Exemptions

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.

Eligibility

A consumer is entitled to purchase natural gas exempt from the carbon levy:

  • if they can provide, at the time of purchase, a carbon levy exemption certificate or other prescribed evidence of exemption and the natural gas is intended for a prescribed purpose.
  • if natural gas is delivered to an address on a reserve and the eligible consumer has provided the natural gas service provider with:
    • a federal identification card or Alberta Indian Tax Exemption (AITE) card
    • an original certificate and the natural gas is being acquired for band management activities or for real property on a reserve

Responsibility of a direct remitter

The direct remitter must:

  • sell natural gas exempt from the carbon levy at the time of purchase, if the consumer provides evidence of exemption to the direct remitter or the natural gas service provider
  • in their remitter return, include the exempt volume in the “gross volume subject to carbon levy” line and deduct the exempt volume in the appropriate “exemption” line
  • ensure that the exemption is still valid

Form instructions

Trouble opening or completing fillable PDF forms?

Fillable PDF forms do not open properly on some mobile devices and web browsers. If the form doesn't open, or you can't complete the form, or you see a "please wait" message, follow these steps to complete and save fillable forms from Tax and Revenue Administration (TRA):

  1. Right-click on the form link and select "Save Target As" or "Save Link As", and save the form to your computer.
  2. Launch Adobe Reader.
  3. Open the PDF from within Adobe Reader. You can now fill and save your form.

To submit your forms

Forms cannot be sent through email. Complete and print your forms and bring, mail or fax them to TRA.

Information for remitters

How to register – remitter

Natural gas distributors, producers and gas gathering system operators that use or sell natural gas are required to register by completing the following steps.

Step 1: Complete the registration form

Step 2: Submit your application

  • Bring, mail or fax your completed form to TRA.

Step 3: Receive decision letter

  • If approved, you will receive a letter indicating your Business Identification Number (BIN).

Step 4: Register for TRACS (TRA Client Self-Service)

How to file a return

Natural gas distributors, producers and gas gathering system operators that use or sell natural gas are required to file and remit the carbon levy monthly. A return must be completed and submitted every month including months where there is no activity or the return is nil.

A carbon levy return is due on or before the 28th day of the month following the period end. You will be charged a penalty if you file your return late.

Step 1: Complete your return

Step 2: Remit the levy collected and view the Notice of Assessment

  • Remit the levy owing on or before the 28th day of the month following the period end.
  • Interest will be charged on late remittances and will continue to accrue until the balance is paid in full.
  • 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 Assessments.

How to pay

Refunds

Recipients that are not consumers

A recipient that is not a consumer may apply for a refund of carbon levy when:

  • a verifiable quantity of fuel was stolen or destroyed
  • the natural gas could not be sold by the fuel seller due to contamination
  • the natural gas was sold on credit and all or a portion of the debt for the sale is a bad debt
  • the recipient provided a consumer with a biomethane credit but remitted carbon levy payable to Tax and Revenue Administration (TRA) without deduction of the biomethane credit

Consumers

A consumer may apply to TRA for a refund or a credit for all or part of carbon levy paid by the consumer for natural gas when:

  • carbon levy paid by the consumer exceeded the amount the consumer was required to pay, and the consumer is unable to recover the excess amount from the vendor;
  • the consumer purchased natural gas and the consumer:
    • is unable to use natural gas due to contamination;
    • is unable to recover carbon levy paid on natural gas from the vendor; and
    • provides satisfactory evidence to TRA that natural gas was disposed of in a manner that did not contravene an enactment and that did not involve combustion or venting.

Refund applications

An application for a refund of tax must be received by TRA within:

  • Bad debt: 4 years after the end of the taxation year in which the bad debt was deducted in computing and reporting the claimant’s income for that taxation year for the purposes of the Income Tax Act (Canada).
  • Stolen or destroyed natural gas: 1 year from the date the natural gas was stolen or destroyed.
  • Other refunds: 4 years after the end of the calendar year in which the circumstance giving rise to a claim for a refund has occurred.

Information for claimants

How to register - claimant

Recipients must register with TRA as a claimant before applying for a refund of carbon levy paid on natural gas unless the recipient is already registered as a direct remitter with TRA.

Step 1: Complete the registration form

Step 2: Submit your application

  • Bring, mail or fax your completed carbon levy claimant registration form to TRA.

Step 3: Receive decision letter

  • If approved, you will receive a letter indicating your Business Identification Number (BIN).

Step 4: Register for TRACS (TRA Client Self-Service)

How to file a claim

Step 1: Complete your claim

  • Complete and submit the claim in your TRACS account.

Step 2: Receive your refund

  • Receive your refund by direct deposit.
  • If there were changes made to your claim, a notice of assessment will be available in your TRACS account under View Assessments.

How to get your refund

Direct deposit is a convenient, reliable, and secure way to receive a refund from Tax and Revenue Administration (TRA).

Sign up for direct deposit in TRACS

  • Log in to your TRACS account and select ‘Manage Direct Deposit’.
  • Enter your banking and contact information and 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:

  • submit returns and claims
  • view the status of submitted claims
  • 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
  • complete and submit a notice of objection
  • set up direct deposit for carbon levy refunds
  • submit documents
  • view exemption and remitter listings

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

Publications and forms

Information circulars

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.

Special notices

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.

Instruction guides

Forms

If you have trouble opening fillable PDF forms, see the form instructions.

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Contact

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

Fax: 780-644-4144

To connect with Tax and Revenue Administration

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-644-4300
Toll free: 310-0000 before the phone number (in Alberta)
Email: tra.carbonlevy@gov.ab.ca