If you overpaid tax or paid tax in error (for example, you qualify but didn't receive an exemption when you purchased the fuel), you may be eligible to receive a refund of the motor fuel tax or carbon tax you paid.
If you are looking for information about the fuel tax refund program for persons with disabilities, visit our fuel tax refund program for persons with disabilities webpage.
Only the person who paid the tax can claim a refund. We consider the person who purchased the fuel (for example, the person named on the invoice) to be the person who paid the tax, regardless of whose funds the purchaser used.
An exception to this rule is when an agent purchases goods or services on behalf of their principal. In these cases, the agent is considered the purchaser and must apply for any refund available. Please contact us if you are unsure if you are in an agent-principal situation.
If the documentation doesn’t name the purchaser but it shows that payment was made using a credit card, debit card or cheque, we will consider the credit card or bank account holder to be the person who paid the tax.
Important: Your application will be rejected if you are not the correct person or business to claim the refund.
Example
John is the sole shareholder of the company Logging Inc. John purchased clear diesel for Logging Inc.’s logging truck and paid motor fuel tax at the clear diesel rate. In certain situations, fuel purchased for use off-highway is eligible for a refund of the difference between the clear and coloured tax rates. In this case, the fuel John purchased was for a qualifying use in Logging Inc.’s logging truck. The fuel invoice names John as the purchaser.
Because John is identified as the purchaser, he may apply for a refund. Logging Inc. may not.
As a fuel seller, you may apply for motor fuel tax and/or carbon tax refunds for the difference between the security you pay on your fuel purchases and the security or tax you collect from your customers.
Examples include:
If you are registered as a collector and submit tax returns to us, you can claim a refund by deducting the refund amount from the amount of the security due on the return for the same reporting period.
If you are a deputy collector or retail dealer, you can claim a refund by filling out the applicable refund application form. Forms are either available online or at a Service BC Centre near you.
Each refund form will tell you what documentation you may need to include. You can then submit the completed form and your documentation by mail or courier to the address on the form.
The ministry cannot issue refunds of less than $10, or if the security was paid more than four years from the date we receive your refund claim.
If you extend credit to a customer, you may be required to pay the tax due on the sale before you collect the tax or security from your customer. If the customer’s account later becomes uncollectable and is written off as a bad debt, you are eligible for a refund of the amount of tax or security that you paid to the ministry but did not collect from your customer.
In some situations, you need to pay the tax first and meet some conditions to qualify for a refund or partial refund. Examples include:
You can apply for a refund by filling out the applicable form. Forms are either available online or at a Service BC Centre near you.
Each refund form will tell you what documentation you may need to include. You can then submit the completed form and your documentation by mail or courier to the address on the form.
The ministry cannot issue refunds of less than $10, or if the date you paid tax or security was more than four years ago.
Carbon tax does not apply in B.C. after March 31, 2025. Note that any fuel delivered prior to April 1, 2025 is subject to carbon tax, regardless of when an invoice is issued or becomes due.
Except for natural gas retail dealers, if a collector, deputy collector, or retail dealer collects amounts as if it were carbon tax in error after March 31, 2025, they should not refund their customer. Instead, they must remit these amounts directly to government. Customers who pay tax in error can apply for a carbon tax refund directly from the government, if they have evidence that they paid the tax in error and the total refund is $10 or more.
For more information about claiming a carbon tax refund, see Carbon Tax Refunds for Purchasers (CT 002) (PDF, 235KB).
If a natural gas retail dealer charges amounts as if it were carbon tax in error after March 31, 2025, they must credit or refund the tax to the purchaser. If they issue the credit or refund within 180 days of the date the purchaser paid the tax, they do not have to report and remit the tax to government. If they do not issue a credit or refund, or they issue it after 180 days, they must report and remit the tax to the government.
You can appeal a denied or reduced refund claim by writing a letter to the Minister of Finance within 90 days of the date on the letter that notifies you of the denied or reduced refund.
Contact us with your questions about the motor fuel tax or carbon tax.
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