Effective April 1, 2019, the Government of Canada will be enforcing a fuel charge for the provinces of Manitoba, New Brunswick, Ontario, and Saskatchewan. This new fuel charge was introduced as part of the Greenhouse Gas Pollution Pricing Act (the Act) which will be administered by the Canada Revenue Agency (CRA) to put a price on carbon pollution which plays an important role for Canada’s climate action plan. In addition, effective July 1, 2019, the territories of Nunavut and Yukon will enforce the fuel charge as well. These territories are considered “listed provinces” and the fuel charge will not apply on fuel used outside of these jurisdictions.
Who is Required?
Every interjurisdictional road carrier who is in a listed province will be required to register as a road carrier with the CRA. Those include vehicles who use the following fuels:
- Gasoline
- Light fuel oil (diesel)
- Marketable natural gas
- Propane
Generally, any road carrier that provides commercial transportation of individuals or goods by road from one province to another or from a location that is outside of Canada to another location in Canada, and the road carrier travels to or through a listed province, will be required to register. Those who conduct business in a listed province might have to register for one or more of the following:
- Distributer
- Importer
- Emitter
- User of fuel
- User of combustible waste
- Air carrier
- Specified air carrier
- Marine carrier
- Specified marine carrier
- Rail carrier
- Specified rail carrier
- Road carrier
To determine if you’re required to register, learn more by visiting the Fuel Charge Notice FCN1, Registration Under the Greenhouse Gas Polluting Pricing Act.
Failing to register when required under the Act could result in a $2,000 penalty. If you’re ready to register, click here!
Reporting to the CRA
Similar to International Fuel Tax Association (IFTA) requirements, road carriers will be required to file a quarterly return to specify the amount of fuel used within each listed province. Purchases of fuel within a listed province will be inclusive of the charge. Consequently, fuel that is purchased at a retail outlet in a listed province but used outside the listed province may be eligible for a rebate.
Getting Your Rebates
A road carrier may be entitled to claim a rebate depending on the business activities conducted in a listed province over a quarter, which would be filed with the quarterly return. The return, and the payment where required, is due by the end of the month following the end of the quarter. For example, if the quarterly return is for April-June then it would be due by the end of July.
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