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

Tax and Revenue Administration (TRA) administers the Climate Leadership Act and Regulation, which provides for the collection of Alberta carbon levy from January 1, 2017 to May 29, 2019, and the refund or rebate of carbon levy to eligible fuel sellers and consumers.

A direct remitter was required to remit the carbon levy payable to Tax and Revenue Administration (TRA) when conducting various activities in Alberta.

A recipient who would otherwise regularly be entitled to carbon levy refunds or credits may choose to apply for a carbon levy licence in order to acquire fuel exempt from carbon levy. Licence holders are required to file a monthly return even if the return is nil.

A fuel seller may choose to apply for a refund of the carbon levy when fuel is sold to eligible exempt fuel users instead of applying for a licence.

All fuel sellers, including retailers, are required to file an inventory declaration and remit the carbon levy payable at the time of a carbon levy rate change.

Definitions of transportation and other fuels

The term “transportation fuels” includes:

  • gasoline
  • diesel
  • propane (for motive use)
  • aviation gas
  • aviation jet fuel
  • locomotive diesel

The term “other fuels” includes:

  • bunker fuel
  • butane
  • coal coke
  • coke oven gas
  • ethane
  • gas liquids
  • heating distillate oil
  • heavy fuel oil
  • high heat value coal
  • kerosene
  • low heat value coal
  • methanol
  • naphtha
  • natural gas (other than heating purposes)
  • pentanes plus / condensate
  • propane (for heating purposes)
  • raw gas
  • refinery gas
  • refinery petroleum coke
  • upgrader petroleum coke

Direct remitters – eligibility

Direct remitters are generally the first supplier in the fuel distribution chain where the carbon levy is payable upon the fuel being sold and removed.

Various entities including fuel producers, manufacturers, importers, and sellers, conducting various activities in Alberta, may be required to register as a direct remitter.

Refer to the following information circulars for a complete listing of activities that require a person to register as a direct remitter:

Responsibilities of a direct remitter

Direct remitters can sell fuel exempt from carbon levy but cannot acquire fuel exempt from carbon levy. For more information see:

A direct remitter is required to file a carbon levy remitter return and remit the carbon levy payable on a monthly basis. A return is still required to be filed, regardless if there is no activity or the net carbon levy payable is nil.

A direct remitter does not report the volume of fuel sold to a licence holder.

Licence holders – eligibility

To be eligible for a licence, the fuel vendor or supplier must be regularly entitled to a carbon levy refund or credit.

Carbon levy licence for fuels other than gasoline diesel

An entity in Alberta may apply for a carbon levy licence for fuels other than gasoline and diesel if they:

  • export fuel from Alberta in bulk
  • sell aviation fuel to an exempt aviation fuel user
  • sell fuel for use at a facility pursuant to the Specified Gas Emitter Regulation (SGER), which was replaced by the Carbon Competitiveness Incentive Regulation (CCIR) effective January 1, 2018
  • sell fuel for use in an exempt oil and gas production process before January 1, 2023
  • sell fuel to an exempt consumer for use as a raw material, diluent or solvent
  • sell fuel to another licence holder
  • store fuel in a designated offsite storage facility

Carbon levy licence for gasoline and diesel exporters

An entity may apply for a gasoline and diesel exporters carbon levy licence only if they ordinarily export at least 80% of gasoline and diesel purchased in Alberta during a calendar year.

Responsibilities of licence holders

A licence holder can acquire fuel exempt from carbon levy from direct remitters or other licence holders.

Licence holders are required to file a carbon levy remitter return and remit the carbon levy payable on a monthly basis. A return is still required to be filed regardless if there is no activity or the net carbon levy payable is nil.

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

Step 1: Complete the appropriate form

Step 2: Submit your form

  • Bring, mail or fax your completed registration or application 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

Step 5: Notify TRA of changes

Operators

  • Contact TRA if the operator of a partnership or joint venture changes.
  • There is no need to notify TRA if a partner in a partnership or a participant in a joint venture changes.

Re-organization, amalgamation, or name change

  • Contact TRA if a re-organization, amalgamation or name change has occurred.
  • TRA will review the circumstances and determine if changes to the direct remitter or licence holder registration are required.

How to file a remitter return

A carbon levy remitter 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

  • File your Transportation Fuels and / or Other Fuels Carbon Levy Remitter Return online using TRACS (TRA Client Self-Service).
  • Print the confirmation page for your records.

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.

Inventory declaration

The 2019 inventory declaration online form 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 the following:

How to pay

Refunds

Eligibility

A fuel seller may apply for a refund of carbon levy when the fuel:

  • was stolen or destroyed
  • could not be sold due to contamination
  • was sold on credit and all or a portion of the debt for the sale is a bad debt
  • was sold exempt from carbon levy to an eligible exempt consumer
  • was sold to a licence holder exempt from carbon levy
  • exported from Alberta in bulk
  • was rebranded and the new carbon levy rate is lower than the carbon levy rate that applied to the fuel before it was rebranded
  • the carbon levy was overpaid

See the following information circulars for more information on application for a refund:

Refund applications

An application for a refund of the carbon levy 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: 1 year from the date the fuel 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

Fuel vendors must register with TRA as a claimant before applying for a refund of carbon levy paid on fuel unless the recipient is already registered as a remitter with TRA.

Step 1: Complete your claim

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).

How to file a claim

Fuel vendor claims are filed on a monthly basis.

Step 1: Complete your return

  • File your carbon levy claim online using TRACS.
  • Print the confirmation page for your records.

Step 2: Receive your rebate

  • Receive your rebate by direct deposit or cheque. If there were changes made to your claim, a letter of assessment will be mailed.

How to set up direct deposit

  • Login to your TRACS account
  • Select “Manage Direct Deposit”
  • Enter your banking information 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.

Remitters

  • file a return
  • confirm receipt of submitted returns
  • view status of prior assessments, financial details and notices of assessment and reassessment (if applicable)
  • access financial information and view account period balances
  • update address and contact information
  • delegate account access to other employees or authorized individuals
  • complete a notice of objection
  • view reports
  • submit documents

Claimants

  • file a claim
  • confirm receipt of submitted returns
  • view status of prior assessments, financial details and notices of assessment and reassessment (if applicable)
  • access financial information and view account period balances
  • update address and contact information
  • delegate account access to other employees or authorized individuals
  • set up direct deposit for carbon levy refunds
  • complete a notice of objection
  • submit documents

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