Reporting & Paying Motor Fuel Tax & Carbon Tax

If you sell or plan to sell fuel in B.C., you may have responsibilities and obligations for reporting, collecting and paying motor fuel tax and/or carbon tax. 

Whether you're a business, accountant or bookkeeper, you can sign up for eTaxBC to report and pay motor fuel tax and/or carbon tax online. If you’re already signed up for provincial sales tax (PST), you can add your motor fuel tax and/or carbon tax accounts to your eTaxBC account.

You may also submit your tax return and payment (if required) by mail or courier to:

Motor Fuel and Carbon Tax
Ministry of Finance
1802 Douglas Street
Victoria, B.C.  V8T 4K6

Due Dates

Generally you must submit your tax return and payment by the 15th day of the month following the month in which you use or sell the fuel. However, you may be given a less frequent filing requirement depending on the amount of taxes you pay annually.

The exceptions to the due date are:

  • Self Assessor Returns (Carbon Tax) – due the 28th day of the month following the month you use the fuel
  • IFTA Returns – due by the last day of the month following the end of the quarter
  • If the due date falls on a weekend or B.C. statutory holiday –  the next business day is considered the due date

Tax Returns

There are different tax returns for the different carbon tax rate periods (e.g. July 1, 2010 to June 30, 2011). Use the tax return that matches the period in which you are remitting tax.

General Collector Returns (MFT/CT)

If you're appointed as a motor fuel tax or carbon tax collector, you must pay security to us when you sell fuel for the first time in B.C. Use the appropriate return to report your sales and pay the security due.

Selling Fuel Within Greater Vancouver or Victoria (MFT)

If you sell clear gasoline or clear diesel fuel within the Victoria regional transit service area or the South Coast British Columbia transportation service region (Greater Vancouver), you must collect the dedicated motor fuel taxes.

If you sell fuel for the first time in these areas, you must report and pay the tax or security using:

Note: You can no longer use the Motor Fuel Collector Tax Return to report these sales.

See the bulletin Tax Rates on Fuels (MFT-CT 005) (PDF) for more information.

Fuel Sellers Operating on Reserve Land (MFT/CT)

If you are an exempt fuel retailer, you must report your sales and remit any tax due.

Natural Gas Sellers (CT)

If you sell natural gas to end-purchasers, you must collect and remit tax using the Natural Gas Retail Dealers Return (FIN 106) (PDF) for carbon tax.

Note: You must also collect provincial sales tax and the ICE Fund tax when you sell natural gas, unless an exemption applies.

Natural Gas Used by Stationary Internal Combustion Engines (MFT)

Generally you pay motor fuel tax when you use natural gas, or purchase it for use, in a stationary internal combustion engine. If a seller doesn't charge you motor fuel tax when you purchase the natural gas, you must self-assess the tax due using the form Natural Gas Consumed by Stationary Internal Combustion Engines (FIN 451) (PDF).

Registered Consumers, Air Services and Marine Services (MFT/CT)

Certain types of businesses can apply to become registered consumers, registered air services or registered marine services. These registrations authorize you to purchase specific types of fuel without paying tax but require you to self-assess and pay tax when you use the fuel for a taxable purpose.

See the following bulletins for complete details:

For motor fuel tax, Registered Consumers use the Generic Motor Fuel Tax Return (XLS) to report and remit the motor fuel tax due.

For carbon tax, Registered Consumers use the Registered Consumer Carbon Tax Return (FIN 176) (PDF), and Registered Air Services and Marine Services use the Registered Air Service or Marine Service Carbon Tax Return (FIN 105) (PDF) to report and remit the carbon tax due.

If you use any type of fuel in B.C. that is not indicated on your Registered Consumer Certificate (e.g. you import another type of fuel or combustible that you use for a taxable purpose), you must self-assess and pay motor fuel tax and/or carbon tax on that fuel or combustible.

For more information, see the bulletin Self-Assessing Motor Fuel and Carbon Tax (MFT-CT 006) (PDF).

Self-Assessing (MFT/CT)

If you import fuel into the province in bulk or manufacture fuel for your own use, you must pay tax. Importing fuel in bulk includes fuel imported by pipeline, railcar, barge or truck, but does not include fuel in the supply tank of a vehicle. If you combust tires or peat to produce heat or energy, you must also report and remit tax.

Complete the appropriate form to report and send in the tax owing:

For more information, see the bulletin Self-Assessing Motor Fuel and Carbon Tax (MFT-CT 006) (PDF).

Interjurisdictional Carriers (IFTA) (MFT)

If you bring fuel in the supply tank of a commercial motor vehicle, you must either obtain a motive fuel user permit or be registered under the International Fuel Tax Agreement (IFTA).

For more information, see the bulletin International Fuel Tax Agreement and the Motive Fuel User Permits (MFT-CT 008) (PDF).

Overdue Accounts

If we determine that you have not collected, paid or remitted tax as required, we may issue you an assessment for the tax due.

In addition to assessing you for tax that should have been paid or remitted, we may also charge you interest and penalties and, where applicable, not allow any commission claimed.

For more information, see the bulletin Penalties and Interest (CTB 005) (PDF).

Audits

If you're selected for an audit, we will formally examine the business financial records of you or your business to ensure that taxes and security have been collected, paid or remitted as required.