Charge on fuel held in a listed province on adjustment day

You may be required to pay a charge under section 38 of the Greenhouse Gas Pollution Pricing Act (the Act) if you hold fuel in a listed province at the beginning of an adjustment day and the fuel charge amount for a specific fuel type is $1,000 or more.

The first adjustment days (commencement days) were:

April 1, 2019 for the following listed provinces:

  • Manitoba
  • New BrunswickFootnote 1 
  • Ontario
  • Saskatchewan

July 1, 2019 for the following listed provinces:

  • Nunavut
  • Yukon

January 1, 2020 for the following listed province:

  • Alberta

Subsequent adjustment days for all listed provinces are April 1, 2020, April 1, 2021, and April 1, 2022. New Brunswick is no longer a listed province and is not subject to these adjustment days.

Who has to pay a charge

A charge may be payable if you hold a quantity of a type of fuel in a listed province at the beginning of an adjustment day and the fuel charge amount for a specific fuel type is $1,000 or more, unless one of the following exceptions applies.

Exceptions

A charge does not apply on a quantity of a type of fuel held by you on an adjustment day if it was delivered to you by a registered distributor and one of the following applies:

  • you are a registered emitter and the fuel is held at, or is in transit to, your covered facility(ies)
  • you are a registered user for that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act
  • you are a farmer, the fuel is a qualifying farming fuel, and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act
  • you are a fisher, the fuel is a qualifying fishing fuel, and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act
  • you are a remote power plant operator that generates electricity exclusively for remote communities if the fuel is light fuel oil (diesel) and marketable natural gas and an exemption certificate applies in respect of the delivery in accordance with the fuel charge regulations, 2018, c. 12, s. 87

Charge not payable

If the fuel charge amount for a specific fuel type in a listed province is less than $1,000, you are not required to report or pay the charge.

A charge is not payable on a quantity of a type of fuel held by you at the beginning of an adjustment day in a listed province if you are:

  • a registered distributor for that type of fuel
  • a registered specified air carrier for that type of fuel
  • a registered specified marine carrier for that type of fuel
  • a registered specified rail carrier for that type of fuel

Also, a charge is not payable on fuel that is, in accordance with the Ships' Stores Regulations, designated as ships' stores for use on board a conveyance of a class prescribed under those regulations.

For more information, see Fuel Charge Notice FCN3, Annual Charge on Fuel Held in a Listed Province on Adjustment Day.

How to report and calculate the charge for fuel held on adjustment day

If you are required to pay a charge on fuel held at the beginning of an adjustment day, use Form B402, Fuel Charge Return for Fuel Held in a Listed Province on Adjustment Day, to report the charge.

You also have to complete Form B402-1, Fuel Charge Return Schedule for Fuel Held in a Listed Province on Adjustment Day, to calculate your total charge. If you hold fuel in more than one listed province, you will need to complete one schedule for each listed province.

You can file your completed return and schedule(s) electronically using the "Submit documents" function in My Business Account. Select "Submit Fuel Charge registration form or supporting documents."

You can also send these forms by mail to the following address:

Sudbury Tax Centre
Fuel Charge Program
Post Office Box 20000, Station A
Sudbury ON  P3A 5C1

When to send the fuel charge return for fuel held on adjustment day

You must send the return and the applicable schedule(s) by the end of the calendar month that follows the month in which the adjustment day occurs. For example, returns for fuel held on the adjustment day on April 1, 2019, were due by May 31, 2019.

When the CRA receives your first Form B402, Fuel Charge Return for Fuel Held in a Listed Province on Adjustment Day, and you are not registered for the fuel charge, you will be assigned a fuel charge account number for use with any future filing of this type of return. If you are already registered, you will be assigned a new program account for use with any future filing of this type of return. This fuel charge account number will be displayed on your Notice of Assessment.

How to pay the charge

Your payment is due at the same time as your return. For more information on which method you can use, see Payment options for fuel charge, air travelers security charge, information returns penalty, tax on insurance premiums or softwood lumber.

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