Motor fuel tax and carbon tax for businesses that manufacture, import or sell fuel

You may need to register to pay security or motor fuel tax and/or carbon tax if you:

• Sell fuel you manufacture or import
• Use fuel you manufacture or import
• Sell natural gas

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:

1. Security that must be paid to them by deputy collectors (wholesalers) and retail dealers
2. 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:

• 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

• 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)