Fuel taxes - British Columbia

International Fuel Tax Agreement (IFTA)

IFTA registration in British Columbia is available to British Columbia-based carriers that are plated in British Columbia. Carriers based in Yukon, Alaska, or the Northwest Territories may licence for IFTA in British Columbia. Such licensees must operate in British Columbia to qualify.

IFTA applies to a qualified vehicle operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property, and:

Fuel tax rates

The provincial fuel tax is currently charged at the rate of $0.15 per litre for diesel fuel; $0.145 for gasoline; and $0.0732 for propane (taxes may be higher depending on region). Carbon taxes are additional.

British Columbia has both clear and coloured fuel; however, coloured diesel fuel, which is purchased at a lower tax rate of $0.1067 per litre including the carbon tax, cannot be used in commercial motor vehicles other than for uses authorized in the Motor Fuel Tax Act.

Fuel tax refunds

Fuel tax refunds are allowed for tax-paid clear diesel used in stationary motor vehicles engaged in the following uses:

• Pumping or dispensing liquids or other materials (such as milk, water, or flour) from or to a commercial motor vehicle;
• Power-take-off units used for operating a drilling unit;
• Mobile cranes;
• Operating hydraulic arms mounted on logging trucks; and
• Refrigeration units.

Fuel tax refunds are also available for the logging, mining, and oil and gas exploration industries for tax-paid clear diesel used in the following vehicles when operating off-highway:

• Logging: trucks to haul lumber or logs;
• Mining: trucks to transport minerals;
• Oil and gas exploration: trucks, other than pick-up trucks, used to carry equipment and supplies; and
• Logging and mining industries: crew vehicles and/or buses transporting employees, contractors/agents, or contractor/agent employees.

All invoices supporting fuel purchases must be submitted. The invoices must contain the fuel purchase date, seller’s and purchaser’s name and address, and type and quantity of fuel purchased. The applicant must also submit a copy of the current registration of the vehicle(s), as well as detailed information about the vehicle(s) such as licence plate, year and make of vehicle, type of vehicle, and purpose of vehicle.

Refunds must be claimed within four years.

Forms are available at tinyurl.com/BCtaxforms.

Fuel trip permits/motive fuel permits

Interprovincial carriers operating qualified vehicles into British Columbia (from an IFTA jurisdiction) who do not have IFTA registration must either obtain IFTA registration or obtain a temporary motive fuel permit (MV4001) before entering the province. The permits are issued at inspection stations and the fees are based on the number of kilometers the vehicle is expected to travel in British Columbia (minimum fee of $10), plus a deposit for British Columbia’s carbon tax (minimum fee $10). The fees are as follows:

There are no limits on how many permits a carrier may obtain. A copy of the motive fuel permit must be carried in the vehicle and available to a peace officer, upon request. If the amount of travel in British Columbia is less than the amount of tax paid, or if on the trip the fuel purchased and tax paid exceeds that which was owed, the carrier can apply for a refund (refunds must be more than $10).

Carriers entering British Columbia from a non-IFTA jurisdiction must either obtain an IFTA licence in British Columbia or obtain a motive fuel user permit/decal before entering British Columbia.

Carriers based in British Columbia who are not registered under IFTA and that enter other IFTA jurisdictions must obtain fuel trip permits to enter the other jurisdictions. When returning to the province, the carrier is subject to the motor fuel and carbon taxes on fuel brought into British Columbia. Carriers file using “Self Assessors Carbon Tax Return” (FIN 112) and “Self Assessors Motor Fuel Tax Return” (FIN 135).

Bulk fuel transporters

If fuel is transported by bulk into British Columbia for the transporter’s use and is not in the motor vehicle’s fuel supply tank, the transporter must pay the fuel tax upon entry into British Columbia. However, if the fuel is in the vehicle’s supply tank, the transporter is exempt from paying tax on the fuel as long as the vehicle is licenced under IFTA or has a motive fuel permit.

Carbon tax

British Columbia’s Carbon Tax applies to several fuels, including but not limited to gasoline, diesel, and propane, and it is paid at the time of purchase or at the time the fuel is brought into, used, burned, or transferred into British Columbia.

The tax is based on the amount of carbon dioxide emissions from the various fuels. Tax rates (for those fuels of interest to motor carriers) are as follows:

The complete tax rates can be found by visiting the British Columbia Ministry of Small Business and Revenue’s website at www.sbr.gov.bc.ca/business/Consumer_Taxes/MotorFuelTax_CarbonTax/mft_ct.htm.

Carriers licenced under IFTA are required to report and pay carbon taxes on the IFTA quarterly returns. The tax is reported as a combined rate on the IFTA tax return (no separate form is required).

For more information, contact British Columbia Ministry of Small Business and Revenue at (604) 660-4524 (in Vancouver) or toll-free at (877) 388-4440, or e-mail questions to CTBTaxQuestions@gov.bc.ca.