Key Fuel Programs – Fuel Appointment/Authorization Programs

After fuel is manufactured or imported into the province, the business which first sells that fuel must be appointed a fuel collector under the Motor Fuel Tax Act. To apply for appointment as a fuel collector, please contact us.

Please see How to File for information on filing fuel tax returns.

There are six types of fuel collectors:

Businesses that manufacture fuel, or have a primary terminal for fuel in the province, or that conduct at least 65 per cent of their business in the province at wholesale, may be appointed full collectors. Full collectors are authorized to purchase and sell fuel, exempt from tax, both inside and outside the province. They may also be permitted to re-brand fuel: for example, re-label heating fuel as diesel.

Restricted collectors are collector's whose appointments include restrictions that the director considers advisable or necessary. Restrictions may include conditions such as:

	the import of a specific type or types of fuel into the province, or
	a limitation to the types of fuels that may be rebranded, or
	the purchase of specific fuels exempt of tax for re-sale purposes

Registered consumers are authorized to purchase and import or purchase one specific type of fuel, for their own use, without paying tax at the time of purchase. Currently only railways that bring locomotive fuel into, and take fuel out of, the province in the storage tanks of locomotive power units are appointed as registered consumers. These railways file tax returns reporting the locomotive fuel consumed in the provinces in which they operate and pay tax calculated thereon.

Natural gas consumers are businesses extracting and processing natural gas and using a portion to move product in pipelines to market. Natural gas consumers
self-assess tax when natural gas is purchased for use, or used, in an internal combustion engine.

The Indian Act (Canada) provides exemption from B.C. motor fuel taxes on fuel purchased on, or delivered to, a reserve for the personal use of a status Indian or Indian Band.

Taxpayers are required to self assess and remit tax when they import fuel into B.C. for their own use.

In addition, in some limited circumstances, businesses may request and be permitted to purchase coloured fuel and self-assess and remit tax when the fuel is not used for authorized coloured fuel purposes. To qualify, the majority of the taxpayer's business activity must use coloured fuel and the business must demonstrate that:

	purchasing two fuel types (coloured and clear) is impractical (e.g. geographically remote location, limited ability to expand storage capacity due to regulatory or environmental constraints), and
	purchasing two fuel types creates a significant financial hardship for the business, and
	there is limited risk of loss to provincial revenue

For more information on the Fuel Collector Program, please contact us.