TAX AND REVENUE ADMINISTRATION - PDF document

1 TAX AND REVENUE ADMINISTRATION 9811 -
TAX AND REVENUE ADMINISTRATION 9811 - 109 STREET , EDMONTON AB T5K 2L5  Email : TRA.Revenue@gov.ab.ca  Website: tra.alberta.ca  Phone: 780 - 427 - 3044  Fax: 780 - 427 - 0348 Note: for toll - free service in Alberta, call 310 - 0000, then enter the number. Tax and Revenue Administration (TRA) Fuel Tax A ct Information Circular TEFU - 1R5 Fuel Tax Rebates Last updated: November 30, 2018 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. Trouble opening PDF forms? Fillable forms do not open on some mobile devices and web browsers. If the form doesn't open or you see a "please wait" message, follow these steps to complete and save fillable forms from TRA : 1. Righ t - click on the form link, or on the “Please wait” page, and select "Save Link As" or “Save As” , and save the form to your computer. 2. Launch Adobe Reader. 3. Open the PDF from within Adobe Reader. You can now fill and save your form. 4. Note that forms cannot be e mailed. Please print the form and then mail or fax it to TRA (see contact information below). Fuel Tax Rebates This information circular provides an overview of Alberta’s fuel tax rebate program. Index  Alberta Fuel Tax Exemptions  Marked Fuel Program  Clear Fuel Tax Rebates o Marked Fuel Not Reasonably Available o Foreign Embassies and Diplomats – Tax Paid in Error o Government of Canada – Tax Paid in Error o Fuel Mixed or Injected into a Well - bore o Aviation Fuel Used for an Int

2 ernational Flight  Reten tion of
ernational Flight  Reten tion of Records  Forms and Additional Information  Contact Information and Useful Links - 2 - Alberta Fuel Tax Exemptions 1. The Fuel Tax Act permits certain consumers to purchase marked fuel partially exempt from fuel tax and clear fuel fully exempt from fuel tax, in specific circumstances. The partial exemption from tax on marked fuel is $0.09 litre, while the full exemption from tax on clear fuel is $0.13 per litre. Fuel purchased partially or fully exempt from tax is referred to as “tax - exempt fuel”. To purchase tax - exempt fuel, a consumer must provide, at the time of purchase, a valid fuel tax exemption certificate or other prescribed eviden ce of exemption, and the fuel must be for a prescribed purpose or use . Back to Index Marked Fuel Program 2. Marked fuel may be used only in unlicensed vehicles and equipment, or for farming operation s in Alberta. 3. A consumer with a valid fuel tax exemption certificate may purchase marked gasoline and diesel partially exempt from tax at the time of purchase , thereby paying tax of $0.04 per litre rather than $0.13 per litre . A consumer may apply for a fuel tax exemption c ertificate by completing a Declaration of Tax Exempt Fuel User Application (AT321) a nd submitting it to Alberta Treasury Board and Finance, Tax and Revenue Administration ( TRA ) for approval. 4. If the application is approved, TRA will issue a fuel tax exemption certificate, thereby permitting the consumer to purchase marked fuel partially exempt from tax. Marked fuel must be used in unlicensed vehicles and equipment, or for farming ope rations, unless marked fuel was not reasonably available (as explained below). Back to Index Clear Fuel Tax Rebates 5. In certain cases,

3 a consumer of clear fuel may apply for
a consumer of clear fuel may apply for a full or partial rebate of the tax paid on the fuel purchased. Situations where a consumer may apply for a fuel tax rebate include:  marked fuel was not reasonably available;  fuel tax was paid in error by foreign embassies, diplomats, or the Government of Canada;  fuel was mixed or injected into a well - bore; and  aviation fuel was used for an international flight. - 3 - 6. The rebate that is available in situations where marked fuel was not reasonably available is limited to $0.09 per litre, which is equivalent to the amount of exemption that would have been provided had marked fuel been purchased. The rebate that is available in respect of the other situations set out above is $0.13 per litre, which is equivalent to the fu ll amount of tax paid on the fuel purchased. 7. To apply for the rebate, an a pp licant must submit a Fuel Tax Rebate Application (AT342) . An application must be prepared on a calendar quarter basis. A dditional supporting documentation may be requested by TRA prior to the rebate claim being approved . 8. An application, including an amended application, must be received by TRA within three years of the end of the calendar year in which the respective fuel was purchased. Any application received after this time is ineligible and the rebate will be disallowed. Back to Index Marked Fuel Not Reasonably Available 9. In situations where marked fuel is not reasonably available, a consumer otherwise entitled to purchase marked fuel , which includes a partial exemption of tax of $0.09 per litre , may have to purchase clear fuel that includes the full amount of t ax of $0.13 per litre . To claim the rebate of $0.09 per litre in respect of tax paid on clear fuel used in unli

4 censed vehicles and equipment , or for
censed vehicles and equipment , or for farming operations, the consumer must have had a valid fuel tax exemption certificate at the time the clear fuel was purchased and satisfy TRA that marked fuel was not reasonably available as a result of either:  no fuel seller having marked fuel available for sale within a 50 - kilometre radius of the consumer’ s location; or  the fuel being used in an operation where clear fuel had to be used and there existed a legal restriction (e.g., zoning) that prohibited the consumer from having more than one storage tank. Back to Index Foreign Embassies and Diplomats – Tax Paid in Error 10. F oreign embass ies are exempt from paying tax of $0.13 per litre on fuel purchased in, or brought into, Alberta for their own use. Foreign embassies include :  countries or states other than Canada;  political subdivisions of that country or state;  agencies of that country, state or political subdivision; and - 4 -  accredited persons representing that country, state or political subdivision in Canada. Diplomats must be listed in the current edition of Diplomatic, Consular and O ther Representatives in Canada, as publish ed by the Government of Canada. 11. T he following documentation must be included with each Fuel Tax Rebate A pplication (AT342) for tax paid in error by a foreign embassy or diplomat :  a copy of the page from the Diplomatic, Consular and Other Representatives in Canada , showing the applicant's name, if applicable; and  a cover letter explaining that the application is in respect of tax paid in error. Back to Index Government of Canada – Tax Paid in Error 12. The Government of Canada is exempt from paying tax of $0.13 per litre on fuel ordered or purchase

5 d in Alberta and paid for by the Governm
d in Alberta and paid for by the Government of Canada directly (not by a government employee ) . The Government of Canada includes all of its departments, as well as some agencies and Crown Corporations. 13. T he following documentation must be included w ith each Fuel Tax Rebate A pplication (AT342) for tax paid in error by the Government of Canada :  a cover letter explaining that the application is in respect of tax paid in error; and  a document authorizing the Government of Canada to purchase fuel for its use, which includes a statement such as: This is to certify that the Alberta f uel t ax paid on fuel ordered or purchased was purchased by _________________________________________________________ Name of Department, Agency or Corporation which is part of the Government of Can ada , or is a tax - free Government of Canada agency, and therefore is not subject to Alberta fuel tax. Back to Index Fuel Mixed or Injected into a Well - bore 14. If fuel is mixed with another substance making it unusable in an internal combustion or turbine engine, it may qualify for a fuel tax rebate. The person that own ed and mixe d the fuel with the other substance should apply for the fuel tax - 5 - rebate. Examples of persons that may be eligible to apply for a fuel tax rebate in respect of fuel that was mixed with another substance include manufacturers of explosives, or manufacturers of fracturing fluid to be injected into a well - bore. 15. If fuel is injected into a well - bore to stimulate additional production from a well , it may qualify for a fuel tax rebate. 16. T he following documentation must be included with each Fuel Tax Rebate A pplication (AT342) for a fuel tax rebate in respect of fuel that is mixed with another substance or injected int

6 o a well - bore :  a cover letter
o a well - bore :  a cover letter explaining that the application is in respect of fuel that was mixed with another substance and a n explanation of the mixture ; or  a cover letter explaining that the application is in respect of fuel that was injected into a well - bore to stimulate additional production from the well. Back to Index Aviation Fuel Used for an International Flight 17. Details in respect of a fuel tax rebate for fuel tax paid on aviation fuel used for an international flight are set out in Information Circular AV - 1, Aviation Fuel Tax – International Flights . Back to Index Retention of Records 18. All records and documentation related to a fuel tax rebate must be retained for six years from the end of the calendar year in which the fuel was purchased or four years from the end of the calendar year in which the rebate is paid, whichever is later. A n applicant must maintain complete records to support a n application for a fuel tax rebate . 19. In the event a fuel tax rebate claim is audited, TRA will contact the applicant to arrange for all pertinent records to be reviewed at the applicant's premises, or to have the re cords delivered to TRA . Back to Index Forms and Additional Information 20. For ms are available on our website. For additional information on claiming a fuel tax rebate, or for any questio ns about the required documentat ion to accompany a F uel T ax R ebate A pplication (AT342) , please contact TRA . - 6 - Back to Index Contact Information and Useful Links Contact Tax and Revenue Administration (TRA): Email: TRA.Revenue@gov.ab.ca Visit our website: tra.alberta.ca Subscribe to receive email updates: tra.alberta.ca/subscribe.html TRA Client Self - Service (TRACS): tra.al berta.ca/tr