Additional security payment or security refunds when tax rates change

If you purchase fuel in B.C. for resale, you pay security to your supplier equal to the tax that would be collected if the fuel was sold to an end purchaser.

When the carbon tax or motor fuel tax rate changes, you must complete an inventory return to report the amount of security-paid fuel you own for resale purposes as of the end of day that immediately precedes the effective date of the tax rate change.

For example, for tax rate changes effective April 1, you must determine your fuel inventory as of the end of day March 31. You must pay additional security, or you may claim a refund of security, equal to the difference between the old and new tax rates, multiplied by the volume of security-paid fuel in your inventory.

The requirement to file inventory returns applies to all deputy collectors and retail dealers. If you purchase fuel in B.C. for resale and paid or will be paying security to your supplier, you are considered a deputy collector or retail dealer for that fuel. 

This information does not apply to natural gas sellers.

On this page

• Fuel inventory
• 2025 carbon tax inventory return

Fuel inventory

You must take inventory of your fuel as of the end of day that immediately precedes the effective date of the tax rate change. For example, if a tax rate change is effective April 1, you must take inventory at the end of the day March 31.

To take inventory, you must determine the amount of security-paid fuel you own, or are deemed to own, for resale in your inventory on which you have paid security or are required to pay security.

You’re deemed to own fuel as of the end of the day that immediately precedes the effective date of the tax rate change if:

• You entered into an agreement to purchase fuel and the agreement provides that you own the fuel as of the end of that day
• You have not received delivery of the fuel before that time, and
• You have not entered into an agreement with another person that provides that the other person owns the fuel as of the end of that day

If you’re a retail dealer, you’re deemed to own fuel at the end of the day that immediately precedes the effective date of the tax rate change if:

• You entered into an agreement to sell fuel to an end purchaser, and
• The end purchaser has not received delivery of the fuel as of the end of that day

2025 carbon tax inventory return

To report your security-paid fuel inventory for the April 1, 2025 tax rate change and receive a refund of security paid, you must file a Carbon Tax Inventory Return in your Carbon Inventory (CIV) account using eTaxBC. Your inventory return calculates your security refund based on the security-paid fuel inventory you report.

To claim a refund on security-paid fuel inventory you own, or are deemed to own, as of the end of day March 31, 2025, your carbon tax inventory return must include documentation that supports the total volume of each type of fuel you owned. Evidence may include:

• Your own inventory report or reconciliation
• Your general ledger or trial balance of inventory
• For fuel in storage tanks (above ground or underground):
  • A report of product levels as measured physically with a gauge stick, or
  • A report of product levels taken from an electronic tank level monitor, for example, an automated storage tank gauge
• For fuel in transit (trucks): truck tank gauge reports (meter readings), truck tickets, if inventory is still in trucks as of the end of day March 31, 2025
• For fuel in railcars (in transit or stopped at railyards): rail car reports/bills of lading, if inventory is still in rail cars as of the end of day March 31, 2025
• For fuel in transit (pipelines): pipeline injection reports, if inventory is still in the pipeline system as of the end of day March 31, 2025

Note: The April 1, 2025, tax rate change is subject to the legislation being introduced and passed.

If you received a CIV inventory requirement letter, but you do not have an eTaxBC logon, you can use the letter ID to enrol for access to eTaxBC. If you do not have a CIV account or did not receive a letter, please contact us at FuelTax@gov.bc.ca

You do not need to enrol again if you previously added your CIV account to your eTaxBC logon.

Don’t have an eTaxBC logon? Enrol now and learn more about eTaxBC.

File on time

Your inventory return must be received on or before the due date to be considered on time.

Your inventory return is considered on time if it is posted to eTaxBC by 11:59 pm (Pacific Time) on the due date. You must file a nil return on time even if you have no inventory to report.