British Columbia released two amended documents regarding fuel sellers’ obligations under the Motor Fuel Tax Act and the Carbon Tax Act in British Columbia. These amendments relate to announcements made by the province in the 2012 provincial budget on February 21, 2012. See our tax development in February 2012, entitled “British Columbia Budget 2012”.
The key changes in Bulletin MFT-CT 001, “Fuel Sellers”, relate to the new exemptions available under the Motor Fuel Tax Act and Carbon Tax Act for sellers of qualifying fuels, imported by ship in prescribed volumes, that are sold in the province before the fuel is released under the Customs Act (Canada). Qualifying fuels are liquid fuels (e.g., gasoline or diesel), gaseous fuels (e.g., butane or ethane), and solid fuels (e.g., high heat value coal). The prescribed volumes are: greater than 5 million litres for liquid fuels; greater than 30 million litres for gaseous fuels; and greater than 25,000 litres for solid fuels. Deputy collectors or retail dealers are not eligible for the exemption if they import the qualifying fuels in prescribed amounts by ship, and sell that fuel within British Columbia after release from customs. These collectors and dealers must remit security to the province, and collect either security or tax on the sale from their customers.
Notice 2012-005, “Notice to Fuel Sellers” was re-released in July, from its original version in June 2012, for amendments to further clarify the new exemption for fuel sellers described above.
BC MFT-CT 001
BC Notice 2012-005