Fuel tax – Marked fuel

Important notices

Fuel tax rate

As of April 1, 2022, Albertans stopped paying the provincial fuel tax, including for the following:

• gasoline – 13 cents per litre
• diesel – 13 cents per litre
• marked gasoline and marked diesel – 4 cents per litre

Albertans will see these savings at the pump.

The government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating collection in stages. The government will not start to reinstate collection before July 1.

View the How does the Fuel Tax Relief impact your IFTA return video to understand how these changes may affect the total amount owing on your IFTA return.

For additional information, see Fuel tax inventory declaration and Special Notice Vol. 1 No. 44 – Alberta Fuel Tax Relief (March 24, 2022).

Overview

Marked fuel is diesel or gasoline fuel coloured to a concentration of 14 parts per million of red dye. This fuel is partially tax exempt to eligible consumers.

The fuel tax rate on marked fuel is 4 cents per litre, which is 9 cents per litre lower than the 13 cents per litre on clear fuel.

All fuel sellers, except full direct remitters, must purchase marked fuel including fuel tax.

Who can purchase marked fuel

In Alberta, marked fuel may be purchased by:

• eligible farmers for farming operations in Alberta that have an active Alberta Farm Fuel Benefit (AFFB) exemption number
  • how to apply for an AFFB exemption
• commercial and government entities (other than the Government of Canada) that have a Tax Exempt Fuel User (TEFU) exemption certificate for use in unlicensed equipment or for heating purposes
  • how to apply for a TEFU exemption certificate or fuel tax rebate

How to apply

Complete the following steps if you are applying to:

• sell marked fuel
• acquire marked fuel for export
• dye fuel

For detailed step by step instructions, see:

• How to complete the Fuel Tax registration (video) – February 2022
• Fuel Tax Registration Instruction Guide (PDF, 896 KB) – November 2021

Step 1. Create or log in to your MyAlberta Digital ID account

• Create a basic account or log in to MyAlberta.

Log in to MyAlberta Digital ID

Step 2: Sign in and select Online Registration

• After you create a MyAlberta Digital ID account, login to TRACS. You will need to sign in using your MyAlberta Digital Identity 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 is available in your TRACS account.

Report marked fuel transactions

If approved, an entity is required to electronically file all consumer sales transactions and all marked fuel movements (inventory, imports, acquisitions, dispositions and exports) on a monthly basis.

Step 1: Submit your consumer sales transactions

• Online: login to your TRACS account and select “Create AFFB/TEFU Sales” from the menu. Enter the sale details and select “Submit” when all of the transactions have been entered.
• SFTP: contact TRA to set up electronic filing using Secure File Transfer Protocol (SFTP), a method of transferring files between two remote systems. This method of filing is beneficial if you have large volumes of sales records to report each month and data entry is not feasible.

Step 2: Submit all marked fuel movements

• Online: login to your TRACS account and select either “Create Acquisitions and Imports” or “Create Dispositions and Exports” from the menu. Enter fuel movement transaction details of the fuel movement and select “Submit’ when done.
• SFTP: if you have been set up for SFTP for consumer sales transactions, then you can also submit files for inventory, import, acquisition, disposition and transactions. Contact TRA if you are interested in finding out more information about filing using SFTP.

Eligibility to dye fuel

Clear fuel may be dyed at any point in the distribution chain including a refinery, terminal, , bulk storage facility, or at the pump (including card lock sites and on-truck marking). Other than a full direct remitter, businesses approved to dye fuel must purchase clear fuel tax-included and apply for a refund of tax in TRACS.

See Information Circular FT-5 – Marking Fuel for more information

TRA will consider registering a business to dye clear fuel for the purpose of resale if all of the following criteria are satisfied:

• The business is in full compliance with all tax filings at the time the application(s) is made (if applicable).
• Each location where fuel dyeing will occur must:
  • have a metered mechanical dye injector system
  • restrict access to marked fuel to eligible consumers (e.g., the consumer has a valid Alberta Farm Fuel Benefit (AFFB) or Tax Exempt Fuel User (TEFU) number)
  • prevent unauthorized access to the dye and dye injector system
  • have security seals in place to prevent or indicate tampering
  • have a ratio of one dye injector to one marked fuel pump
• The business agrees to meet annual reporting requirements, including the reporting of dye concentrate volumes using the Dye Stock Report (AT4984) (PDF, 259 KB) for each site. This report is to be uploaded using the Submit Documents in TRACS shortly after filing the return/claim for the December period end.

How to apply for a refund

Step 1: Complete the claim in TRACS

• Log in to your TRA Client Self-Service (TRACS) account and select 'File a Return/Claim'.

Claims can be filed online either by:

• web form (data-entry)

or

• XML file upload

For more information about filing using the XML file upload process, see XML Upload Requirements for Submitting Fuel Tax Returns and Claims.

Step 2: Submit your claim

• Submit the claim in TRACS and print or save the confirmation page for your records.

Step 3: Receive your refund

• Refunds will be issued by direct deposit. (See Set up direct deposit)
• If there were changes made to your claim, a letter of assessment will be available in your TRACS account under View Assessments.

Set up direct deposit

• Log in to your TRACS account.
• Select 'Manage Direct Deposit'.
• Enter your banking information and contact information.
• Click 'Submit'.

For an instructional video, see TRACS videos.

Managing your account in TRACS

Tax and Revenue Administration (TRA) is no longer processing phone or email requests for basic account information.

Account owners or their representatives can access most of the information related to their account in Tax and Revenue Administration Client Self-Service (TRACS) portal.

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:

• confirm receipt and completion of submitted claims
• view monthly inventory summary and sales summary reports
• report marked fuel transactions
• check AFFB/TEFU eligibility
• view status of prior assessments, financial details and notices of assessment and reassessment
• access financial information and view account period balances
• update address and contact information
• delegate account access to other employees or authorized individuals

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

• Complete the Alberta Consent Form (AT4931) (PDF, 328 KB).

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 e-mail. TRACS access can only be provided to an individual.

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

Publications, forms and video

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.

Cross-program information circulars

• TRA-1R2 – Introduction to Tax and Revenue Administration – December 2021
• TRA-2 – TRA Fairness and Service Pledge – July 2018
• TRA-3 – Alberta Commodity Tax Acts – Voluntary Disclosures – November 2018

Fuel tax information circulars

• FT-1R1 – Overview of Fuel Tax – February 2017
• FT-3R2 – Fuel Tax Exemption Certificates – February 2017
• FT-4R2 – Sale of Tax-exempt Fuel – December 2020
• FT-5R2 – Marking Fuel – June 2022
• FT-6R1 – Tax Refunds – February 2017
• FT-7R1 – Assessments – February 2017
• FT-9R1 – Audits, Objections, and Waivers of Penalties and Interest – December 2020
• FT-10R2 – Offences and Related Penalties – December 2020
• FT-11R2 – Direct Remitters – August 2019
• FT-12R3 – Fuel Sellers – February 2019
• FT-13R1 – Exempt Sale Vendors – February 2017
• See the Open Government Portal for the complete set of Fuel Tax information circulars.

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.

Fuel tax special notices

• Vol. 1 No. 42 – Tax Exempt Fuel User (TEFU) Certificates – February 2020
• See the Open Government Portal for the complete set of Fuel Tax special notices.

Forms

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

• AT4984 – Dye Stock Report (PDF, 259 KB) – July 2014
• AT366 – Litres Dyed during the Month (PDF, 237 KB) – July 2012
• AT4762 – Notice of Objection – December 2020)
• AT4764 – Request for a Waiver of Penalties an Interest (PDF, 854 KB) – October 2021

Video

• How to complete the Fuel Tax registration – February 2022
• Tax Exempt Fuel User (TEFU) - Non-expiring Certificates video – February 2020

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Contact

Submit forms

Complete your forms and email or fax them to:

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

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)
Email: [email protected]