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Tax and Revenue Administration
Purchases and Sales
Special Notice Vol. 11 No. 3


Last Reviewed: January 4, 2017
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.carbonlevy@gov.ab.ca

Vol. 11 No. 3 / January 2017

SPECIAL NOTICE

PURCHASES AND SALES BETWEEN DIRECT REMITTERS, LICENCE HOLDERS AND CONSUMERS WITH A CARBON LEVY EXEMPTION CERTIFICATE

NOTE: This special notice is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this special notice and governing legislation, the legislation takes precedence.

Fuel Sales by Eligible Direct Remitters

A direct remitter that operates a refinery, or manufactures, refines or acquires in, or imports into, Alberta not less than a total of 500 million litres of clear fuel annually may sell clear or marked gasoline and diesel, or aviation gas and aviation jet fuel to another direct remitter that operates a refinery, or manufactures, refines or acquires in, or imports into, Alberta not less than a total of 500 million litres of clear fuel annually, without collecting and remitting the carbon levy.

No particular evidence of exemption is required in respect of sales of clear or marked gasoline and diesel, or aviation gas and aviation jet fuel between such direct remitters. Click here for a listing of eligible direct remitters under the Fuel Tax Act. These are the only direct remitters that may sell clear or marked gasoline and diesel, or aviation gas and aviation jet fuel among themselves without collecting and remitting the carbon levy.

For sales of fuel other than clear or marked gasoline and diesel, or aviation gas and aviation jet fuel, a direct remitter described above must collect and remit the carbon levy on the fuel sold to another direct remitter described above unless the fuel seller is registered to sell fuel exempt from the carbon levy and the purchaser presents at the time of purchase a valid licence or carbon levy exemption certificate identifying the purchaser as a person that is entitled to purchase the respective type of fuel exempt from the carbon levy. At the time of sale, the fuel seller is required to record and retain the approval number indicated on the licence or exemption certificate.

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Fuel Sales by Ineligible Direct Remitters

A direct remitter that does not operate a refinery, or does not manufacture, refine or acquire in, or import into, Alberta at least 500 million litres of clear fuel annually may not sell any fuel exempt from the carbon levy to any direct remitter unless the fuel seller is registered to sell fuel exempt from the carbon levy and the purchaser presents at the time of purchase a valid licence or carbon levy exemption certificate identifying the purchaser as a person that is entitled to purchase the respective type of fuel exempt from the carbon levy. As above, the fuel seller is required to record and retain the approval number indicated on the licence or exemption certificate.

Generally, a person registered to sell fuel exempt from the carbon levy may sell fuel exempt from the carbon levy to any person that presents at the time of purchase a valid licence or carbon levy exemption certificate identifying the purchaser as a person that is entitled to purchase the respective type of fuel exempt from the carbon levy. Persons registered to sell fuel exempt from the carbon levy may verify the validity of a particular licence or exemption certificate by logging into their secure Tax and Revenue Administration Client Self-Service (TRACS) account and accessing the real-time list of valid approval numbers.

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Fuel Purchases by Eligible Direct Remitters

A direct remitter that operates a refinery, or manufactures, refines or acquires in, or imports into, Alberta not less than a total of 500 million litres of clear fuel annually may purchase clear or marked gasoline and diesel, or aviation gas and aviation jet fuel from another direct remitter that operates a refinery or manufactures, refines or acquires in, or imports into, Alberta not less than a total of 500 million litres of clear fuel annually, without paying the carbon levy.

No particular evidence of exemption is required to be provided to the fuel seller in respect of such sales of clear or marked gasoline and diesel, or aviation gas and aviation jet fuel between eligible direct remitters.

For purchases of fuel other than clear or marked gasoline and diesel, or aviation gas and aviation jet fuel, a direct remitter that operates a refinery, or manufactures, refines or acquires in, or imports into, Alberta not less than a total of 500 million litres of clear fuel annually must pay the carbon levy on the fuel purchased from another direct remitter, including a direct remitter that operates a refinery, or manufactures, refines or acquires in, or imports into, Alberta not less than a total of 500 million litres of clear fuel annually, unless the purchaser holds a valid licence or carbon levy exemption certificate identifying the purchaser as a person that is entitled to purchase the respective type of fuel exempt from the carbon levy. At the time of purchase, the purchaser is required to present the licence or exemption certificate to the fuel seller and the fuel seller will record and retain the approval number indicated on the licence or exemption certificate.

Generally, a person that holds a valid licence or carbon levy exemption certificate indicating that the person is entitled to purchase the respective type of fuel exempt from the carbon levy may purchase that fuel exempt from the carbon levy from a fuel seller that is registered to sell fuel exempt from the carbon levy. As explained above, the purchaser is required to present the licence or exemption certificate to the fuel seller at the time of purchase.

Questions

For additional information on the Carbon Levy, please see TRA's Carbon Levy Publications and Forms page.

For general questions about the Climate Leadership Plan, please refer to the Climate Leadership Plan website at http://www.alberta.ca/climate-leadership-plan.aspx.

For questions about the administration of the carbon levy program, please email us at TRA.CarbonLevy@gov.ab.ca.



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