Collecting and Declaring Fuel Taxes in PEI
Fuel wholesalers and sellers of certain fuel products in PEI must register as an agent to collect carbon levy on fuel sales. You need to apply for registration through Taxation and Property Records Division if you sell fuel in PEI as follows:
- Wholesale, licensed under IRAC;
- Industrial fuel;
- Factory-sealed containers of fuel exceeding 10 litres; or
- Combustible waste for fuel, i.e. tires or asphalt shingles.
Retailers purchasing wholesale fuel pay the carbon levy directly to their wholesaler, like payment of gasoline tax. For truckers as International Fuel Tax Agreement (IFTA) carriers, the PEI carbon levy is included with the gasoline and diesel tax on each IFTA quarterly return.
For more information about registration as an agent and appointment of subagents under the Climate Leadership Act, refer to Important Information for Agents.
To register, complete and submit Registration - Agent for Carbon Levy.
To collect and remit the gasoline tax, a licensed wholesale must enter a Wholesaler Agency Agreement with the PEI Department of Finance.
Registered petroleum wholesalers must remit gasoline tax to the Province on or before the 25th day of each month using the Generic Fuel Tax Return as developed by the Canadian Fuel Tax Council. Information on how to complete the return is outlined on Instructions for the Completion of Generic Fuel Collector Report.
How to I declare fuel sales?
As a fuel vendor, you are required to disclose fuel sales each month. Submit reports as follows:
You are required to submit a periodic Gasoline Tax and Carbon Levy Summary Report for sale of gasoline, diesel and related products. Submit the Gasoline Tax/Carbon Levy Combined Return Form.
To find what details to report in the summary, refer to Instructions for the Completion of Gasoline Tax and Carbon Levy Summary Report.