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FUEL VENDOR REGISTRATIONS IN CANADA

OVERVIEW OF FUEL TAXES & REQUIRED REGISTRATIONS

Canada’s fuel tax and registration landscape involves a patchwork of federal and provincial laws. Depending on the nature of their activities, both resident and non-resident oil and gas companies operating in Canada face many layers of compliance obligations.

This blog provides a high-level overview of the kinds of registrations or licenses that may be required for those selling or distributing fuel in Canada.

Federal Framework

At the federal level, two main taxes apply to fuel sales:

1. GST/HST – A sales tax generally applicable on taxable supplies made in Canada;
2. Federal Excise Tax (“FET”) – A flat, volume-based tax on the importation or production of gasoline, diesel and other fuels.

Each of these regimes requires specific registrations, depending on business activities.

Until March 31, 2025, the Canadian government also imposed a fuel charge in several listed provinces (which we previously blogged about here). This charge has now been repealed (with equivalent provincial systems, such as British Columbia’sCarbon Tax, also repealed). All federal fuel charge accounts are cancelled as of November 1, 2025; however, outstanding returns must still be filed in respect of reporting periods prior to April 1, 2025.

Provincial & Territorial Framework

Overlaying the federal rules is a system of provincial & territorial taxes. All provinces and territories have some variation of a “Motor Fuel Tax”, for which registrations may be required for several categories, such as (1) manufacturers, (2) wholesalers, (3) retailers, (4) dyers, (5) importers, (6) exporters, (7) warehousers and more.

Provincial sales taxes generally do not apply to fuels such as gasoline or diesel except in provinces with the harmonized sales tax (“HST”) or in Quebec (i.e., the Quebec Sales Tax), subject to some exceptions.

Fuel Tax & Licensing Snapshot

A general overview of the taxes and associated licenses that may apply to fuel vendors and distributors in Canada is below: 

Takeaways

Canada’s licensing and fuel tax framework is fragmented, and missing a registration or filing can expose businesses to penalties or assessments.  Non-resident entities entering the Canadian market themselves or through subsidiaries should seek professional advice to make sure they stay on-side the requirements.

For help with fuel tax registrations or audits, click here.

Download a PDF copy of this Blog here.