and Revenue Administration
Fuel Tax Act
Information Circular FT-13R1
||February 9, 2017
||Alberta Treasury Board and Finance,
Tax and Revenue Administration
|For more information:
FUEL TAX ACT INFORMATION CIRCULAR:
NOTE: This Information Circular 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 Information Circular
and governing legislation, the legislation takes precedence.
The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.
This Information Circular explains:
OF TAX-EXEMPT FUEL
- Tax-exempt fuel is any fuel purchased either fully or partially exempt from tax (depending on the circumstances) by a consumer who provides, at the time of purchase, a valid fuel tax exemption certificate or other evidence required by the Fuel Tax Act (Act) and uses the fuel for a prescribed purpose as specified in the Act. Where required by the Act the tax-exempt fuel must be marked.
- Under the Act any person who sells tax-exempt fuel in Alberta to consumers is required to register with Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA) as an exempt-sale vendor.
- A registered exempt-sale vendor that is located on a reserve in Alberta and sells tax-exempt clear fuel to Indians or Indian bands will, on approval from TRA, also be registered to provide the exemptions under the Alberta Indian Tax Exemption (AITE) program. In addition, a registered exempt-sale vendor who delivers tax-exempt clear fuel to a reserve in Alberta to Indians or Indian bands will, on approval from TRA, be registered to provide the AITE program exemptions. The duties and responsibilities for these exempt-sale vendors are explained in the AITE series of Information Circulars.
FUEL TAX EXEMPTION
- Exempt-sale vendors are permitted to sell fuel exempt or partially exempt from tax to consumers who provide evidence of exemption. Information Circular FT-3, Fuel Tax Exemption Certificates, explains the evidence required before an exempt-sale vendor is permitted to sell clear fuel exempt from tax, or marked fuel partially exempt from tax.
OF TAX-EXEMPT FUEL
- Information about the sale of clear tax-exempt and marked fuel is available in Information Circular FT-4, Sale of Tax-exempt Fuel.
SALE TO INELIGIBLE
- Where an exempt-sale vendor sells tax-exempt fuel without obtaining proof of the purchaser’s eligibility for the fuel exemption, or knows or ought to know that the fuel will not be used for authorized purposes, both the exempt-sale vendor and the consumer are jointly and severally liable to pay to TRA the amount of the tax the consumer would have been required to pay on the fuel.