Motor fuel tax and carbon tax for businesses that manufacture, import or sell fuel
Last updated on December 13, 2024Carbon tax rates are set to increase on April 1, 2024. Find the carbon tax rate schedule on our Carbon tax rates by fuel type page.
If you're a deputy collector or retail dealer, you must determine your fuel inventory as of the end of day on March 31, 2024 and will be required to report and pay any additional security due by April 15, 2024. Find out more on our Report and pay additional security when tax rates change page.
You may need to register to pay security or motor fuel tax and/or carbon tax if you:
Sell fuel you manufacture or import
When fuel is manufactured or imported, the business that sells the fuel for the first time in the province must be appointed as a collector. Collectors pay security to the province that is equal to the motor fuel tax and carbon tax that will be collected from the end purchaser on retail sales.
To reimburse themselves for the security paid, collectors may keep:
- Security that must be paid to them by deputy collectors (wholesalers) and retail dealers
- Tax collected from end purchasers
Deputy collectors and retail dealers are reimbursed the cost of the security they paid by keeping the security that must be paid to them by other deputy collectors and retail dealers. Retail dealers may also be reimbursed by keeping the tax collected from end purchasers.
This process protects provincial revenue and reduces the number of businesses that need to register to collect and pay motor fuel and/or carbon tax to us.
The following are exceptions to the above:
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If you purchase fuel that is imported by ship from outside of Canada for resale, under specific circumstances you may be required to pay security, and report the import of that fuel
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If you sell to a purchaser that qualifies for an exemption, you may apply for a refund of security you paid
For more information, refer to Fuel Sellers (MFT-CT 001) (PDF, 241KB)
Use fuel you manufacture or import
If you use fuel you’ve manufactured or imported into B.C. you must pay motor fuel tax and carbon tax. For more information, refer to Self-Assessing Motor Fuel and Carbon Tax (MFT-CT 006) (PDF, 187KB)
Sell natural gas
If you sell natural gas to an end purchaser, you must register to collect carbon tax on sales to end purchasers and pay the tax you collect to the province.
For more information, refer to Natural Gas and Biomethane Sellers (CT 001) (PDF, 152KB)
You can manage your account, file returns and make payments online using eTaxBC.
For help with eTaxBC, visit our eTaxBC help guide.
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If you know or suspect a person or business isn’t complying with B.C. tax laws, you can anonymously report them using the online tip form.
You can also submit a tip over the phone 24 hours a day, 7 days a week at 1-877-977-0858.
Contact information
Contact us with your questions about the motor fuel tax or carbon tax.
Our hours of operation are Monday through Friday, 8:30 am to 4:30 pm.