Carbon tax elimination

The B.C. carbon tax was eliminated effective April 1, 2025.

This means that:

• Fuel sellers do not need to hold collectors’ appointments under the Carbon Tax Act to sell fuel
• Natural gas retailers do not need to hold registration certificates under the Carbon Tax Act to sell natural gas

On this page

• Final carbon tax reporting
• Refunds for fuel sellers
• Refunds for fuel purchasers
• Carbon tax audits
• Authorizations, registration or exemptions

Final carbon tax reporting

If you are a fuel seller, your final carbon tax returns for the March 2025 period must include all reportable transactions through the end of day, March 31, 2025.

If you do not have actual figures to report as of the return due date, you may provide estimates on your returns. Once you have the actual figures, you must file an amended return for the March 2025 period. Any excess security you remitted will be refunded.

You may also file amended returns for periods prior to April 2025.

Carbon tax accounts

You should be able to find us listed with your bank under the payee name BC - CARBON TAX

Some banks and financial institutions will use a variation of the payee name above. If you can't find us, call your bank for assistance.

Your carbon tax account number starts with three letters followed by eight numbers (for example: ABC12345678). You can find your account number online using eTaxBC.

For help with eTaxBC, visit our eTaxBC help guide.

Don't have access to eTaxBC? Enrol now and learn more about eTaxBC.

Refunds for fuel sellers

File the 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.

The Carbon Tax Inventory Return must include evidence that supports the total volume of each type of fuel you owned. To find out what evidence qualifies, see Additional security payment or security refunds when tax rates change.

Refunds of tax collected in error after April 1, 2025

A collector, deputy collector, or retail dealer (other than a natural gas retail dealer—see below) who collects carbon tax in error on or after April 1, 2025 must not refund the tax to the customer. Instead, the collector, deputy collector, or retail dealer must report and remit the tax to the government. The purchaser can apply to the government for a carbon tax refund. Contact us for more information.

Refunds of carbon tax paid prior to April 1, 2025

• Collectors, Registered Consumers and Self-Assessors must file amended returns, as usual. For more information, refer to Fuel Sellers (Bulletin MFT-CT 001) (PDF, 240KB)
• Deputy collectors and retailers may claim refunds from the government following the instructions found in Refunds for Deputy Collectors and Retail Dealers (Bulletin MFT-CT 007) (PDF, 230KB)
• There is a four-year limitation period for claiming refunds

Refunds for fuel purchasers

Refunds of carbon tax on purchases of fuels other than natural gas

Purchasers who have paid 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 carbon tax refunds for purchasers, refer to Refunds for motor fuel tax and carbon tax.

Refunds of carbon tax on purchases of natural gas

If a natural gas retail dealer charges carbon tax in error after March 31, 2025, the dealer must credit or refund the tax to the purchaser (no $10 minimum is required).

Depending on whether or not the credit or refund is issued within 180 days of the purchaser paying the tax, they have different next steps:

• If the dealer issues the credit or refund within 180 days, the dealer does not have to report and remit the tax to the government
• If the dealer issues the credit or refund after 180 days, or does not issue it, the dealer must report and remit the tax to the government

Carbon tax audits

Audits and desk audits will continue as usual for periods prior to April 1, 2025.

Authorizations, registrations or exemptions

• All authorizations, registrations and exemptions remain in effect for periods prior to April 1, 2025

• Unconditional letters of credit will be recalculated if required under the Motor Fuel Tax Act or returned if no longer required

• All carbon tax accounts have been closed. Amendments may be made to all carbon tax returns for periods prior to April 1, 2025