News and Insights

British Columbia Fuel Tax Increase and Inventory Requirements

Tax Development Mar 01, 2012



The South Coast British Columbia Transportation Authority (TransLink) recently announced that, effective April 1, 2012, it will be increasing the tax rate on clear gasoline and clear diesel fuel sold within the South Coast British Columbia transportation service region (SCTA) from 15 cents to 17 cents per litre.  The British Columbia Ministry of Finance Tax Notice 2012-002, “Notice to Collectors, Deputy Collectors and Retail Dealers – Fuel Tax Changes and Inventory Requirements”, is relevant for all fuel sellers within this region.  This notice outlines the responsibilities of deputy collectors and retail dealers that both purchase and sell fuel.  This notice also outlines the duties and compliance requirements for those selling fuel for the first time after its manufacture in, or importation into, the SCTA.  

Immediately after midnight on March 31, 2012, deputy collectors and retail dealers are required to determine the amount of clear gasoline (including ethanol) and clear diesel (including renewable diesel fuel) resale inventory and remit, as security, an amount equal to 2 cents per litre of fuel on hand.  

If you own or are deemed to own inventory immediately after midnight on March 31, 2012, you are required to file return FIN 154 - April 1, 2012 - South Coast British Columbia Transportation – Inventory Tax Return by April 16, 2012.  However, if you sell fuel for the first time within the SCTA, you are required to file revised return FIN 427 - South Coast British Columbia Transportation Tax Return, by May 15, 2012.     

BC Notice 2010-002