Fuel charge program (Canada)

Scope

Motor carriers, including those based in Canada and those based in the United States, providing commercial transportation of individuals or goods into, or travel through, the provinces of Manitoba, Ontario, and Saskatchewan or the territories of Nunavut and Yukon are required to register with the CRA and are subject to quarterly fuel charge filings. Effective January 1, 2020, the fuel charge is applicable in Alberta.

The tax applies to Canada-based road carriers as well as U.S.-based carriers that operate into the “listed provinces.” A Canada-based carrier that operates solely in a listed province is not subject to registration or the quarterly tax filings.

Canada’s fuel charge filing is in addition to the International Fuel Tax Agreement (IFTA) filings.

Regulatory citations

• None

Key definitions

• Listed provinces: Listed provinces are the jurisdictions in which the fuel charge must be paid and include Alberta, Saskatchewan, Manitoba, Ontario, Yukon, and Nunavut.

Summary of requirements

Canada’s federal fuel charge program applies to a variety of entities, including road carriers using qualifying motive fuel when operating specified commercial vehicles in the listed provinces. Qualifying motive fuel includes gasoline, light fuel oil, marketable natural gas, and propane.

A specified commercial vehicle is one that essentially meets the definition of a qualified vehicle under the IFTA.

Road carrier registration. Before beginning operations in any of the listed provinces, a road carrier must register with CRA. Road carriers must use L400 and L400-2 application forms.

If the road carrier is not based in Canada, the carrier will need a CRA business number (BN) to put on those forms. A carrier should call (866) 453-0452 or (519) 252-4705 for assistance and specifically state that a BN is needed for the fuel charge program.

Registration forms are available at tinyurl.com/fuelforms.

Filing responsibilities. The fuel charge must be filed quarterly with CRA.

Filing forms are available at tinyurl.com/fuelforms.