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['Fleet Taxes']
['Fleet taxes', 'International Fuel Tax Agreement (IFTA)']
03/25/2024
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InstituteFleet TaxesFleet taxesTransportationUSAFleet OperationsEnglishInternational Fuel Tax Agreement (IFTA)AnalysisFocus AreaIn Depth (Level 3)
GST/HST
['Fleet Taxes']
- GST is a five percent tax on the sale of most goods and services in Canada administered by CRA.
- Registration for the GST/HST is required if taxable goods and services are provided in Canada and the person, corporation, or motor carrier is not a small supplier.
The Goods and Services Tax (GST) is administered by Canada Revenue Agency (CRA) and affects the motor carrier industry. A person, corporation, or motor carrier must register for,collect, and pay the GST if they have commercial activities in Canada which earn annual sales from taxable goods and services, including zero-rated freight transportation services over $30,000.
GST is a five percent tax on the sale of most goods and services in Canada. The current GST and Harmonized Sales Tax (HST) rates are as follows:
| Jurisdiction | GST/HST | PST Rate | Combined Rate |
|---|---|---|---|
| Alberta | 5% | N/A | 5% |
| British Columbia | 5% | 7% | 12% |
| Manitoba | 5% | 7% | 12% |
| New Brunswick | 13% | N/A | 13% |
| Newfoundland /Labrador | 15% | N/A | 15% |
| Northwest Territories | 5% | N/A | 5% |
| Nova Scotia | 15% | N/A | 15% |
| Nunavut | 5% | N/A | 5% |
| Ontario | 13% | N/A | 13% |
| Prince Edward Island | 14% | N/A | 14% |
| Quebec | 5% | 9.975% | 14.975% |
| Saskatchewan | 5% | 5% | 10% |
| Yukon Territories | 5% | N/A | 5% |
Registration for the GST/HST is required if:
- Taxable goods and services are provided in Canada; and
- The person, corporation, or motor carrier is not a small supplier.
Generally, if only exempt goods and services are provided, one cannot register for GST/HST or charge tax on the sales of goods and services.
GST/HST applicability to motor carriers
To view Canada Revenue Agency’s document explaining the GST/HST applicability to freight carriers, visit www.cra-arc.gc.ca/E/pub/gp/rc4080/rc4080-13e.pdf.
Federal sales and excise tax on fuel
The Canadian government assesses an excise tax on fuel plus the five percent GST. The excise tax rate only changes when the Federal budget is changed by the government. The federal fuel tax rates are as follows:
| Fuel Type | Excise Tax (per liter) |
|---|---|
| Diesel | $0.04 |
| Regular Gasoline - Unleaded | $0.10 |
| Regular Gasoline - Leaded | $0.11 |
Fuel tax requirements
Most jurisdictions have some type of fuel tax laws or requirements, whereby motor vehicles must be registered and carriers must report and pay tax on fuel consumed in the province. Currently all 10 provinces are members of the International Fuel Tax Agreement (IFTA) together with the lower 48 United States.
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fleet-taxes
FOUNDATIONAL LEARNING
- GST is a five percent tax on the sale of most goods and services in Canada administered by CRA.
- Registration for the GST/HST is required if taxable goods and services are provided in Canada and the person, corporation, or motor carrier is not a small supplier.
The Goods and Services Tax (GST) is administered by Canada Revenue Agency (CRA) and affects the motor carrier industry. A person, corporation, or motor carrier must register for,collect, and pay the GST if they have commercial activities in Canada which earn annual sales from taxable goods and services, including zero-rated freight transportation services over $30,000.
GST is a five percent tax on the sale of most goods and services in Canada. The current GST and Harmonized Sales Tax (HST) rates are as follows:
| Jurisdiction | GST/HST | PST Rate | Combined Rate |
|---|---|---|---|
| Alberta | 5% | N/A | 5% |
| British Columbia | 5% | 7% | 12% |
| Manitoba | 5% | 7% | 12% |
| New Brunswick | 13% | N/A | 13% |
| Newfoundland /Labrador | 15% | N/A | 15% |
| Northwest Territories | 5% | N/A | 5% |
| Nova Scotia | 15% | N/A | 15% |
| Nunavut | 5% | N/A | 5% |
| Ontario | 13% | N/A | 13% |
| Prince Edward Island | 14% | N/A | 14% |
| Quebec | 5% | 9.975% | 14.975% |
| Saskatchewan | 5% | 5% | 10% |
| Yukon Territories | 5% | N/A | 5% |
Registration for the GST/HST is required if:
- Taxable goods and services are provided in Canada; and
- The person, corporation, or motor carrier is not a small supplier.
Generally, if only exempt goods and services are provided, one cannot register for GST/HST or charge tax on the sales of goods and services.
GST/HST applicability to motor carriers
To view Canada Revenue Agency’s document explaining the GST/HST applicability to freight carriers, visit www.cra-arc.gc.ca/E/pub/gp/rc4080/rc4080-13e.pdf.
Federal sales and excise tax on fuel
The Canadian government assesses an excise tax on fuel plus the five percent GST. The excise tax rate only changes when the Federal budget is changed by the government. The federal fuel tax rates are as follows:
| Fuel Type | Excise Tax (per liter) |
|---|---|
| Diesel | $0.04 |
| Regular Gasoline - Unleaded | $0.10 |
| Regular Gasoline - Leaded | $0.11 |
Fuel tax requirements
Most jurisdictions have some type of fuel tax laws or requirements, whereby motor vehicles must be registered and carriers must report and pay tax on fuel consumed in the province. Currently all 10 provinces are members of the International Fuel Tax Agreement (IFTA) together with the lower 48 United States.
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Copyright 2026 J. J. Keller & Associate, Inc. For re-use options please contact copyright@jjkeller.com or call 800-558-5011.