How to File a Motor Fuel Tax Return

Motor Fuel Tax Returns can be filed:

• by mail or courier
• in person at a ministry office
• at a Consumer Taxation Branch Office
• at a Service BC – Government Agent office

Mailed returns must be postmarked on or before the due date. If you courier or hand-deliver a return, it must be received by the due date, that is 15th day of the month following when the sales took place.

If the due date falls on a weekend or statutory holiday, the next business day is considered the due date.

If tax is owed, please include a cheque or money order made payable to the Minister of Finance. Please note, cheques cannot be post-dated for after the due date. A fee of $20 is charged for dishonoured cheques.

The tax rates change periodically. The current rates are usually printed on each return form. In addition, Bulletin MFT 005, Tax Rates on Motor Fuels contains the current rates.

For information on specific types of returns, their filing frequency and their due dates, please see the sections below:

• Fuel Collectors - Fuel Manufacturers and Fuel Importers
• Retail Dealers Operating on Indian Reserves
• International Fuel Tax Agreement - Licensed Carriers
• Fuel Colourers - Dye Stock Reports
• Natural Gas Used in Internal Combustion Engines
• Miscellaneous Payment of Tax

Motor Fuel Collectors are required to file and pay any tax collected by the 15th day of the month following when the sales took place. If your return and payment are not post marked by the due date, you may be charged interest and your commission may not be allowed. You may also be charged a penalty of 10% of the tax owing. See Bulletin GEN 004, Penalty and Interest Charges for Overdue Tax Returns. Please note, the return must be completed and filed by the due date even if no tax is payable.

Retail dealers operating on Indian reserves selling exempt fuel to native Indians are required to complete monthly tax returns. A Tax Return of Petroleum Fuel Sales by a Retail Dealer Operating on an Indian Reserve (FIN 412) will be mailed to you each month. If you do not receive a return, you are still responsible for reporting your sales and remitting any tax by the due date. Complete a copy of the return from our website, following the instructions provided in the Guide.

The return and any net tax collected are due on the 15th day of the month following when the sales took place. If your return and payment are not post marked by the due date, you may be charged interest and your commission may not be allowed. You may also be charged a penalty of 10% of the tax owing. See Bulletin GEN 004 Penalty and Interest Charges for Overdue Tax Returns. Please note, the return must be completed and filed by the due date even if no tax is payable.

Along with your return, you need to submit the completed schedules listing details of tax-exempt sales and copies of purchase invoices from your fuel supplier during the return period.

For further information on completing the tax return, please see Bulletin MFT 002, Fuel Retail Dealers Operating on Reserve Land.

If you hold a Carrier Licence under the International Fuel Tax Agreement (IFTA), you must file quarterly IFTA fuel tax returns. Returns must be filed each quarter even if you do not operate between jurisdictions or purchase fuel during that quarter.

You will receive your IFTA quarterly fuel tax return at least 30 days before the due date. If you do not receive your return, contact us to have one sent to you, or download a copy of FIN 360 from our website, as well as the instructions for completing the return.

Your return calculates the tax you owe or the credit you are due from each IFTA member jurisdiction. If you owe tax, you send one payment for all taxes due with your return. The return is calculated using metric measurements and Canadian currency.

The following chart shows the due dates for each quarter:

If you do not file your quarterly fuel tax return, the ministry on behalf of all member jurisdictions will assess you for the estimated tax, plus a 10% penalty and interest on the amount owing. We may also suspend or revoke your IFTA licence.

Please see Bulletin MFT 008, International Fuel Tax Agreement for more information.

Persons authorized to colour fuel must submit a monthly Dye Stock Report form
(FIN 476) for each location where fuel was coloured. This form requires details of your pure dye and pre-mix inventory changes for the month, and the number of litres of clear gasoline and clear diesel that were dyed.

The report is due by the 15th day of the month following the month when the fuel was coloured.

You pay tax on natural gas when you use it, or purchase it for use, in a stationary engine that compresses natural gas or pumps oil. You use the Natural Gas Consumed By Internal Combustion Engines form (FIN 451) to send in the tax owing.

When you import fuel into the province in bulk for your own use, you must pay fuel tax. Tax is due when the fuel enters the province. You use the Miscellaneous Payment of Tax form (FIN 135) to send in the tax owing.

Importing fuel in bulk includes fuel imported by pipeline, railcar, barge or truck, but does not include fuel in the supply tank of a vehicle. You may bring up to 182 litres of fuel into the province in the supply tank of a non-commercial vehicle without paying fuel tax.

If you bring fuel in the supply tank of a commercial motor vehicle, you must either obtain a motive fuel user permit or be registered under the International Fuel Tax Agreement. For more information, please see Bulletin MFT 008, International Fuel Tax Agreement.