News and Insights

Alberta Releases Special Notice on the Evidence Required to Support Exportation of Fuel

Tax Development Jun 18, 2018

The Government of Alberta has issued Special Notice Vol. 1. No. 41, “Sale of Fuel Exempt From Tax – Evidence of Export Required.” This notice clarifies that where a purchase of fuel for bulk export is made in Alberta, no fuel tax or carbon levy should be charged. To ensure no tax is charged, a direct fuel remitter must obtain evidence satisfactory to the Tax and Revenue Administration (TRA) that the fuel is indeed being exported out of Alberta.

Evidence that would satisfy the TRA that the fuel is being exported includes, but is not limited to:

  • Bills of lading;
  • A U.S. Customs and Border Protection “Entry Summary” (form 7501);
  • Contracts with a carrier to export fuel outside of Alberta;
    • Shipping invoices showing details of the purchaser and destination;
    • If exported through a pipeline, a pipeline report showing fuel was loaded into the pipeline and the destination; and
    • A statement on your invoices or contracts where the purchaser certifies that the fuel will be exported and/or used outside of Alberta.

In addition, the notice explains that where a direct fuel remitter has purchased fuel with tax but has subsequently sold it to a purchaser who has purchased the fuel exempt of tax for exportation, the direct fuel remitter will be able to adjust their next fuel tax return for the tax paid.