Table of contents

Important notices

Fuel tax relief program

Alberta suspended the collection of the provincial fuel tax on gasoline and diesel effective January 1, 2023. This fuel tax pause has been extended and will remain in place until the end of 2023. After that, the government will review the fuel tax on a quarterly basis and consider reinstating it in stages, based on the average price of WTI over a number of weeks.

The earliest the fuel tax would be reinstated, or partially reinstated, would be January 1, 2024.

For additional information, see:

Overview

In Alberta, fuel tax is generally reported and remitted by importers, and by refiners and large wholesalers designated as full direct remitters (FDR). Fuel tax is charged at the time fuel is imported or when fuel is removed from a refinery or terminal in Alberta.

Each recipient in the distribution chain recovers the fuel tax from the party they sell fuel to, continuing until the end consumer pays the tax. Fuel tax is included in the per-litre sale price at the pump.

See Information Circular FT-1 – Overview of the Alberta Fuel Tax Program for more information.

Definition of fuel seller

A fuel seller includes anyone that sells or otherwise supplies fuel with or without receiving consideration (for example, retailer, wholesaler, bulk dealer, reseller, producer, refiner, manufacturer, importer, exporter, etc.).

Fuel tax

Fuel is subject to fuel tax when it is imported, or when it leaves a refinery or terminal, and is sold to a person other than an FDR and is not intended for delivery to a refinery or terminal. See Tax, levy and prescribed interest rates for a complete listing of all fuel tax rates.

Allowable tax-out transactions

No Alberta fuel tax is payable when:

  • An FDR sells fuel to another FDR. See the list of Registered and Approved Full Direct Remitters.
  • Fuel is imported for delivery to an FDR operating a terminal or refinery who will report these volumes and remit the applicable tax on their return.
  • Clear gasoline, clear diesel, propane, or aviation fuel is sold to a consumer eligible to purchase fuel exempt from tax if the purchaser provides evidence of eligibility. See Information Circular FT-4 – Alberta Fuel Tax Exemptions, Refunds and Rebates.
  • Locomotive fuel is sold to a registered railway for use in a railway locomotive.
  • Bunker fuel, kerosene, methanol and condensate are sold, unless the fuel is consumed for motive purposes in an internal combustion engine.
  • Fuel sold is for direct export from Alberta in bulk. For more information, see Information Circular FT-2: Information for Direct Remitters, Fuel Sellers and Other Recipients.
  • Renewable fuel is sold to a renewable fuel producer.
  • Fuel is sold to an eligible consumer on reserve in Alberta. See Alberta Indian Tax Exemption (AITE) for more information about how to register to sell tax-exempt fuel on reserve in Alberta.
  • Foreign commercial carriers on international flights originating in Alberta are exempt from the fuel tax at the time of purchase.

Partial exemption on marked fuel

Marked gasoline and marked diesel are taxed at a lower rate than clear fuel when sold to another fuel seller or eligible consumers. FDRs may also sell marked fuel to another FDR exempt from fuel tax.

For more information regarding the partial exemption from fuel tax, see:

When to register

In Alberta, an entity must register to:

  • produce or refine fuel including renewable fuel (excluding kerosene, methanol, bunker fuel or condensate)
  • operate a terminal or act as a position holder within a terminal operated by another person
  • sell fuel, or remove their own fuel, from a refinery or terminal
  • import fuel into Alberta for resale
  • import fuel in bulk as a consumer
  • sell aviation fuel
  • sell fuel exempt from tax including marked fuel
  • mark fuel (see Fuel tax – Marked fuel for more information)
  • rebrand fuel including:
    • reclassify a type of fuel
    • change a fuel to another type of fuel or to a non-taxable product
    • change a non-taxable product that was originally a fuel back to a taxable fuel
  • export fuel from Alberta in bulk
  • sell kerosene, bunker fuel, methanol or condensate in bulk
  • use locomotive fuel in Alberta
  • sell fuel dye for use in Alberta
  • produce or distribute propane (see Fuel tax – Propane for more information)
  • apply for a refund or rebate of fuel tax
  • sell propane to motive consumers in Alberta (see Fuel tax – Propane for more information)

Eligibility for a fuel tax rebate or refund

A fuel seller may apply for a refund of fuel tax when:

  • a verifiable quantity of fuel was stolen or destroyed
  • the fuel could not be sold due to contamination
  • the fuel seller sold the fuel on credit to another fuel seller and all or a portion of the debt for the sale is a bad debt
  • the fuel is rebranded to a fuel with a lower fuel tax rate
  • fuel is exported from Alberta in bulk

For more information, see:

How to register

Both remitters and claimants are required to complete the online Fuel Tax Registration. See When to register to determine if a registration is required.

For detailed step-by-step instructions, see:

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

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

Log in to Alberta.ca Account

Step 2: Sign in and select Online Registration

  • After you create an Alberta.ca Account, log in 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 'Online 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 or exemption certificate is available in your TRACS account.

How to file

The Alberta fuel tax return must be received by TRA on or before the 28th day of the month following the period end. A return must be filed for each calendar month, whether or not activity occurred.

A  claim for a refund of fuel tax paid must be received by TRA not later than 3 years from the end of the year in which the fuel purchased occurred. The claim is filed monthly as needed.

Step 1: Complete the return/claim in TRACS

Step 2: Submit your return/claim

  • Submit the return/claim in TRACS and print or save the confirmation page for your records.
  • You will be charged a penalty if you file your return late.

Step 3: Remit the amount owing or receive your refund

  • Remit the amount owing – see Making payments.
  •  
    • Interest will be charged on late remittances and will accrue until the balance is paid in full.
  • For claims, you will receive your refund by direct deposit – see Set up direct deposit.
  • 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 Assessment Status.

Inventory declaration

January 1, 2023

As of January 1, 2023 the fuel tax rate on gasoline and diesel fuels will be decreased to 0 cents per litre. Marked gasoline and marked diesel tax rate will remain at 0 cents per litre.

Fuel sellers who held inventories of clear gasoline or diesel fuel, including ethanol, ethanol blended gasoline, biodiesel and blended diesel, that was purchased tax included prior to January 1, 2023, may apply for a refund of $0.045 per litre by completing and submitting a Fuel Tax Online Inventory Declaration.

Fuel sellers must maintain records supporting the amounts reported on their inventory declaration.

TRA must receive the inventory declaration form on or before December 31, 2023.

Step 1: Complete your inventory declaration

Step 2: Receive your refund

  • Once approved, you will receive your refund by cheque.

October 1, 2022

Effective October 1, 2022, the fuel tax rate will change to 4.5 cents per litre on clear gasoline and clear diesel products. Marked gasoline and marked diesel tax rate will remain at 0 cents per litre. For more information, refer to Special Notice Vol. 1 No. 45 – Collection of Alberta Fuel Tax.

Fuel sellers who hold inventories of clear gasoline and clear diesel are required to complete the Fuel Tax Online Inventory Declaration by October 31, 2022. Inventories of clear gasoline (including ethanol blended gasoline) and clear diesel (including blended diesel) held as of 12:01 a.m. on October 1, 2022 are subject to a tax rate of 4.5 cents per litre.

Step 1: Complete your inventory declaration

  • Fuel Tax Online Inventory Declaration form
  • See the instruction guide for assistance completing the form.
  • The physical count should have been taken after closing September 30 or before opening October 1.
  • Note the Inventory Account Number from the confirmation page as this is required with your payment.

Step 2: Remit your payment

  • Payment can be made online or by cheque, and must be received by TRA by October 31, 2022.
  • If paying online, select Alberta Finance – Fuel Tax Collectors as the payee. The tax account number is the Inventory Account Number from the previous step.
    • A known issue entering an account number with a '3' should be resolved by October 27. Try again after this date or payment can be made by cheque.
  • Cheques are payable to the Government of Alberta and sent to:
    Tax and Revenue Administration
    9811 109 Street NW
    ​Edmonton, AB T5K 2L5

April 1, 2022

As of April 1, 2022, the provincial fuel tax was paused.

Fuel sellers who held inventories of gasoline or diesel fuel on April 1, 2022, that was purchased tax included, may apply for a refund of $0.13 per litre of clear fuel and $0.04 per litre of marked fuel by completing and submitting a Fuel Tax Online Inventory Declaration.

Claimants must maintain records supporting the amounts reported on their inventory declaration.

TRA must receive the April 1, 2022, inventory declaration on or before March 31, 2023, one year from the date of the tax rate change.

Step 1: Complete your inventory declaration

Step 2: Receive your refund

  • Once approved, you will receive your refund by cheque.

How to pay

Set up direct deposit

  • Log in to your TRACS account.
  • Select 'Manage Direct Deposit'.
  • Enter your banking 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:

  • file a return/claim
  • submit documents
  • file a Notice of Objection
  • manage direct deposit
  • view reports
  • confirm receipt and completion of submitted returns/claims
  • view status of prior assessments, financial details and notices of assessment
  • 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

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 email. TRACS access can only be provided to an individual.

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

Publications, forms and videos

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 is 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.

Submitting a claim or return using TRACS and XML file upload

PDF form issues

Fillable PDF forms do not open properly on some mobile devices and web browsers. To fill in and save the form:

  1. Save the PDF form to your computer – click or right-click the link and download the form.
  2. Open the PDF form with Adobe Reader. Fill it in and save it.

If you are still having problems opening the form, contact PDF form technical support.

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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)
Fax: 780-427-0348
Email: [email protected]

Related

Other programs administered by Tax and Revenue Administration

Fuel tax rates

Fuel Tax Act and Regulations

Alberta Farm Fuel Benefit Program

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