Tax and Revenue Administration - Frequently Asked Questions (FAQs)

Carbon Levy Administration FAQs - General

Related information:

  • See Carbon Levy Announcements for current information from Tax and Revenue Administration. More information will be added as it becomes available.

  • Please sign up for TRA’s carbon levy administration subscription service at http://tra.alberta.ca/subscribe.html. By subscribing, you will receive email updates whenever new information related to the administration of the carbon levy program is published on TRA’s website.

Carbon Levy FAQs - General - Index

Carbon Levy - General Questions

Carbon Levy - Exemptions

Carbon Levy - Direct Remitters

Carbon Levy - Other Questions



Carbon Levy - General Questions

How does the carbon levy affect municipalities and other not-for-profit enterprises?

Unless you qualify for an exemption from the carbon levy, the carbon levy is payable on and included in fuel you purchase for your operations. Situations where you might qualify for an exemption certificate include using the fuel where you do not combust the fuel and no greenhouse gas is emitted (e.g., as raw material, diluent or solvent in a manufacturing or petro-chemical process). See information on exemptions and licences on the Carbon Levy Publications and Forms page.

How can I stay up-to-date on information about the administration of the carbon levy program?

Please sign up for Alberta Treasury Board and Finance, Tax and Revenue Administration’s (TRA) carbon levy administration subscription service at http://tra.alberta.ca/subscribe.html. By subscribing, you will receive email updates whenever new information related to the administration of the carbon levy program is published on TRA’s website.

How will the carbon levy work?

For fuels such as gasoline and diesel, the carbon levy will be included in the price of the fuel paid by consumers, and administered through a structure similar to Alberta’s fuel tax.

For natural gas, the levy will be collected and remitted by entities in the natural gas distribution system. 

The application of the levy to other fuels, such as coal, propane and heavy fuel oil, will be fuel‑specific, reflecting how the product is produced, distributed, sold and used.

When do I start paying the carbon levy?

The carbon levy is effective January 1, 2017.

What types of fuel are subject to the carbon levy and what are the rates?

The carbon levy will apply to purchases of all fossil fuels that produce greenhouse gas (GHG) emissions when combusted. This includes fuels used for transportation purposes and fuels used for heating, such as natural gas and propane. The carbon levy will not apply directly to consumer purchases of electricity.

The carbon price of $20 per tonne, effective January 1, 2017, will be applied to individual fuels based on the amount of GHG emissions released when the fuel is combusted. This price will rise to $30 per tonne on January 1, 2018.

All of the fuels that have a carbon levy applied to them can be found on the Carbon Levy Rates table.

Is carbon levy payable on natural gas trading where there is no physical delivery of the natural gas?

Generally, carbon levy is payable at the time natural gas is sold, removed or purchased from a transmission pipeline. However, section 6(2) of the Climate Leadership Regulation clarifies that no carbon levy is payable at the time  natural gas in a transmission pipeline is sold but not delivered. Therefore, carbon levy is not payable on natural gas trading as mentioned, until the natural gas is sold and delivered.

The Climate Leadership Act and the Climate Leadership Regulation also operate to require the person who purchases and takes delivery of the natural gas from a transmission pipeline to remit the carbon levy payable on such purchases in a reporting period so that it is received by Tax and Revenue Administration (TRA) not later than 28 days following the end of the period.

In addition, the person that sells the natural gas to such purchasers does not have to collect or remit the carbon levy to TRA.

More details about the registration and return filing process for such purchasers is available in Carbon Levy Publications and Forms.

When do I have to do an inventory declaration?

Effective January 1, 2017 at 12:01 a.m., the Climate Leadership Act (the Act) and the Climate Leadership Regulation (the Regulation) come into force. This means on January 1, 2017 at 12:01 a.m. a person (which includes a sole proprietor, a corporation, a partnership and a trust) that:

  • is the owner of fuel (fuel means a substance set out in the Carbon Levy Rates table);

  • is in possession of fuel for sale or resale in Alberta; and

  • would have been required to pay a carbon levy on the fuel at the time the fuel was purchased or imported had the Act and the Regulation been in effect when the fuel was purchased or imported into Alberta;

must file a Declaration of Fuel Inventory form and remit the carbon levy payable to Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA). TRA must receive the Declaration of Fuel Inventory form and payment not later than 30 days following the day on which the carbon levy rate applicable to the type of fuel changed, or in this case by January 31, 2017.

January 1, 2017: Carbon Levy Online Inventory Declaration Form
The Carbon Levy Online Inventory Declaration Form and an instructional guide highlighting the required information to complete the electronic form is available at: www.tra.alberta.ca/declaration.

If you require additional assistance with completing the inventory declaration after January 1, 2017, please contact TRA at 780-644-4300. To call toll free within Alberta, dial 310-0000, then 780-644-4300.

Do I have to include “Linepack” volumes in my inventory declaration?

Linepack refers to a minimal amount of gas required to pressurize a pipeline for operations. Generally, volumes of natural gas that are used to pressurize the pipeline for its operation, but are not part of the inventory that is considered for sale or resale are not subject to the carbon levy inventory declaration. However, if those volumes are removed from a transmission pipeline for sale or for the operator’s own use, they may be subject to the carbon levy at that time.

Who will qualify to receive rebates or tax credits related to the carbon levy?

See the Alberta Climate Leadership website for information on the Carbon Levy Rebate for consumers.

What is the revenue from the carbon levy going to be used for?

The Climate Leadership Act specifies that the revenue from the carbon levy may only be used:

  1. for initiatives related to reducing emissions of greenhouse gases or supporting Alberta’s ability to adapt to climate change, or

  2. to provide rebates or adjustments related to the carbon levy to consumers, businesses and communities, including adjustments in the form of tax credits or tax rate reductions.

More information on the carbon levy can be found on the Alberta Climate Leadership website.

How is the carbon levy calculated?

The carbon price ($20 per tonne, effective January 1, 2017, then $30 per tonne, effective January 1, 2018) is applied to individual fuels based on the amount of GHG emissions released when the fuel is combusted. The rates of individual fuels are calculated using the carbon price, and can be found on the Carbon Levy Rates table.

Generally, the carbon levy is calculated based on the volume of fuel and the carbon levy rate for that specific type of fuel.

Will the GST be calculated before or after the Carbon Levy is applied to the invoice?

The federal Goods and Services Tax imposed under the Excise Tax Act (Canada) is administered by the Canada Revenue Agency. Questions regarding the application of the GST to the carbon levy imposed under the Climate Leadership Act (Alberta) should be directed to GST/HST Rulings by calling at 1-800-959-8287. We have also provided below the webpage link to Charging and Collecting the GST/HST:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/stps/cllct-eng.html

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Carbon Levy - Exemptions

Is natural gas used in line heaters on a natural gas distribution system exempt from the carbon levy?

No. The combustion, flaring or venting of fuel used in the operation of a natural gas distribution system is subject to the carbon levy. However, a consumer may be exempt from paying carbon levy under the oil and gas production process exemption on fuel used in line heaters that are part of a gas gathering system, as opposed to a natural gas distribution system, where the consumer holds a carbon levy exemption certificate. A gas gathering system is defined in the Climate Leadership Act as “a system or arrangement of pipelines, compressors, line heaters, dehydrators, measurement or other equipment used to move raw gas or natural gas from an oil battery, oil production site, gas battery, gas well or other facility to a gas battery or gas processing facility”. More information can be found in Special Notice Vol. 11 No. 6 - Application of the Carbon Levy to Compressor Stations and Facilities.

I operate an SGER facility where I provide the contractors on site with marked fuel. The marked fuel provided is meant for work being performed on the site. What are my responsibilities regarding the provision of marked fuel to contractors?

Generally, a person requires a TEFU certificate or a CLEC to possess marked fuel in Alberta. However, it is acceptable for a contractor to use marked fuel provided by a SGER facility in their unlicensed equipment while working in a SGER facilily. The contractor may only use the fuel for work performed for the SGER, and while at the SGER facility.

Since the marked fuel is being provided by the SGER facility to be used on the specific facility, it is that SGER facility that would be expected to have both a valid TEFU and a CLEC number in order to receive a partial fuel tax exemption under the Fuel Tax Act and the full carbon levy exemption under the Climate Leadership Act. In this circumstance, the SGER facility is not required to verify and record the TEFU and/or CLEC numbers of contractors that the SGER facility has provided the marked fuel for use at the SGER facility.

I am a contractor who performs work at a Specified Gas Emitter (SGER) facility. I do not have a carbon levy exemption certificate (CLEC) or a Tax Exempt Fuel User (TEFU) certificate under the Fuel Tax Act, can I possess marked fuel provided by the SGER facility for use on their site?

Generally, a person requires a TEFU certificate or a CLEC to possess marked fuel in Alberta. However, it is acceptable for a contractor to use marked fuel provided by a SGER facility in their unlicensed equipment while working in a SGER facility. The contractor may only use the fuel for work performed for the SGER facility, and while at the SGER facility.

I am a contractor who performs work at a Specified Gas Emitter (SGER) facility. Can I receive a carbon levy exemption certificate (CLEC) to purchase marked fuel exempt from the carbon levy for use at the SGER facility? Alternatively, can I get a rebate of carbon levy on marked fuel I purchased for my own operations, but used at a SGER facility?

TRA will not provide a CLEC to purchase marked fuel without carbon levy, or a rebate of the carbon levy paid on marked fuel you have purchased and used at a SGER facility unless the contractor provides certain documentation from the SGER facility.

To receive a CLEC or a rebate on carbon levy paid marked fuel used at a SGER facility, the contractor must obtain from the SGER facility a confirmation that the contractor’s emissions from the fuel are included in the SGER’s reporting of fuel emissions as direct emissions as defined in the Specified Gas Emitters Regulation.

I am a fuel vendor (except for natural gas). What information do I need from the Government of Canada to provide the Government of Canada a carbon levy exemption on fuel?

To purchase fuel exempt from carbon levy, the Government of Canada provides to the fuel vendor an exemption certificate in the following form:

"This is to certify that the fuel ordered/purchased hereby is being purchased by
_________________________________________________________
Name of Department, Agency or Corporation
which is part of the Government of Canada or is a tax-free Government of Canada agency, and is therefore not subject to the Alberta carbon levy."

The certification must be recorded on the purchase order, contract, or invoice relating to the fuel purchased. Carbon levy is payable, and should be collected and remitted, on any fuel sold to an entity, including a government entity, without an exemption certificate or other evidence of exemption.

If the Government of Canada does pay the carbon levy when they purchase fuel, they may apply to Alberta Treasury Board and Finance, Tax and Revenue Administration, for a rebate for the amount of carbon levy paid.

I am a natural gas retailer. What information do I need from the Government of Canada to provide the Government of Canada a carbon levy exemption on natural gas?

In order to purchase natural gas exempt from the carbon levy, the Government of Canada will need to request that their natural gas retailer deliver natural gas to that location exempt from the carbon levy. The Government of Canada will need to provide documentation to their natural gas retailer or other entity that issues the bills for the location indicating that the natural gas is purchased by the Government of Canada and that the premises to which the natural gas is delivered are used by the Government of Canada. The natural gas retailer will then take steps to ensure the Government of Canada will not be charged the carbon levy on natural gas supplied to that location and used by the Government of Canada.

To ensure the natural gas retailer has the necessary information to process the exemption, the Government of Canada will need to provide their natural gas retailer with their SITE ID (a 13-digit number as per the Alberta Natural Gas Billing Regulation identifying the gas meter on their premises and which can be found on the natural gas retailer’s bill). In addition, a standard certification statement will be used as evidence of exemption required by natural gas retailers to process the exemption. The statement used by the Government of Canada should read as follows:

“This is to certify that the fuel purchased hereby is being purchased by and delivered to a premises used by 

_________________________________________________________
Name of Department, Agency or Corporation
which is part of the Government of Canada or is a tax-free Government of Canada agency, and is therefore not subject to the Alberta carbon levy."

If the Government of Canada does end up paying the carbon levy when they purchase natural gas (or any other type of fuel), they may apply to Alberta Treasury Board and Finance, Tax and Revenue Administration, for a rebate for the amount of carbon levy paid.

I am from the Government of Canada. How do I apply for carbon levy exemption?

On January 1, 2017 the Alberta Climate Leadership Act came into effect and a carbon levy will be applied to the use of fuel within the province. The levy applies to all fuels that release greenhouse gas emissions when combusted or vented. This includes both transportation and heating fuels, such as gasoline, diesel and natural gas. The Government of Canada is able to purchase transportation fuels (when purchased from an exempt sale vendor) and natural gas exempt from the carbon levy.

In order to purchase natural gas exempt from the carbon levy, the Government of Canada will need to request that their natural gas retailer deliver natural gas to that location exempt from the carbon levy. The Government of Canada will need to provide documentation to their natural gas retailer or other entity that issues the bills for the location indicating that the natural gas is purchased by the Government of Canada and that the premises to which the natural gas is delivered are used by the Government of Canada. The natural gas retailer will then take steps to ensure the Government of Canada will not be charged the carbon levy on natural gas supplied to that location and used by the Government of Canada.

To ensure the natural gas retailer has the necessary information to process the exemption, the Government of Canada will need to provide their natural gas retailer with their SITE ID (a 13-digit number as per the Alberta Natural Gas Billing Regulation identifying the gas meter on their premises and which can be found on the natural gas retailer’s bill). In addition, a standard certification statement will be used as evidence of exemption required by natural gas retailers to process the exemption. The statement used by the Government of Canada should read as follows:

“This is to certify that the fuel purchased hereby is being purchased by and delivered to a premises used by

_________________________________________________________
Name of Department, Agency or Corporation
which is part of the Government of Canada or is a tax-free Government of Canada agency, and is therefore not subject to the Alberta carbon levy."

If the Government of Canada does end up paying the carbon levy when they purchase natural gas (or any other type of fuel), they may apply to the Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA), for a rebate for the amount of carbon levy paid. An application for rebate can be made in respect of each calendar quarter and must be accompanied by invoices or other records specified by TRA to prove the claim and determine the amount of the rebate. More information on the Alberta carbon levy can be found on the Alberta Treasury Board and Finance, Tax and Revenue Administration website: http://www.finance.alberta.ca/publications/tax_rebates/carbon-levy/overview.html.

I am a natural gas retailer. Some customers present carbon levy exemption certificates to me that do not list specific Site-IDs that are required to initiate the carbon levy exemption in our system. How would you like me to handle the exemption certificates?

There may be times where TRA has issued a carbon levy exemption certificate without specific Site IDs, but it is later determined that those are necessary for the carbon levy exemption to be provided in the invoicing system. In these cases the holder of the carbon levy exemption certificate may contact TRA to amend the existing carbon levy exemption certificate to list the eligible Site IDs. The holder of the exemption certificate will need to supply to TRA the eligible Site IDs. Once the amended carbon levy exemption certificate is supplied to the applicant, the information may be given to the natural gas retailer for initiation of the carbon levy exemption on those eligible Site IDs.

TRA may be contacted regarding this issue by sending an email to TRA at TRA.CarbonLevy@gov.ab.ca, or calling TRA at 780-644-4300 (if calling long distance within Alberta, call 310-0000, then dial 780-644-4300).

Where a carbon levy exemption certificate holder has been charged carbon levy because their carbon levy exemption certificate did not initially contain the Site IDs, the holder may apply to TRA for a rebate of carbon levy paid. Please see Information Circular CL-NG-4, Natural Gas (Heating Purposes) - Refunds and Rebates and the Carbon Levy Claimant Registration – Consumer form for more information.

I have been issued a Carbon Levy Exemption Certificate. When I show it to my natural gas retailer to obtain my upfront carbon levy exemption, the retailer informs me that they need to have specific Site ID on the Exemption Certificate. What is Site ID, where can I can find it, why is Site ID required and what should I do to obtain the exemption?

A Site Identification Number (Site ID) is a 13-digit number that Alberta natural gas retailers may use to identify your meter and bill you for natural gas used under the Natural Gas Billing Regulation. The Site ID can be found on the bill from your natural gas retailer. Where the natural gas retailer requires a Site ID on your Exemption Certificate, you can contact TRA to have the Site IDs added to your carbon levy exemption certificate. TRA will re-issue a carbon levy exemption certificate with the eligible Site IDs for you to provide to your natural gas retailer so that the retailer can initiate the carbon levy exemption for the eligible Site IDs in their system.

I am a business applying for a carbon levy exemption certificate. In each of the Schedules A, B and C for the Carbon Levy Fuel User Exemption Application, there is a column for the applicant to supply Site IDs. What is Site ID, where can I find it and why do I have to complete the column? What should I do if I have numerous Site IDs?

A Site Identification Number (Site ID) is a 13-digit number that Alberta natural gas retailers may use to identify your meter and bill you for natural gas used under the Natural Gas Billing Regulation. If you are applying for an exemption for natural gas, enter the 13 digit Site ID as provided by your natural gas retailer for billing purposes. The Site ID can be found on the bill from your natural gas retailer. If you are not billed through a Site ID, leave it blank. If you have numerous Site IDs you will need to provide one line for each Site ID to ensure the natural gas retailer has the information it needs to provide you the exemption from the carbon levy for all your eligible Site IDs.

I am a contractor who performs work at a Specified Gas Emitter (SGER) facility. Can I receive a carbon levy exemption certificate (CLEC) to purchase marked fuel exempt from the carbon levy for use at the SGER facility? Alternatively, can I  get a rebate of carbon levy on marked fuel I purchased for my own operations, but used at a SGER facility?

TRA will not provide a CLEC to purchase marked fuel without carbon levy, or a rebate of the carbon levy paid on marked fuel you have purchased and used at a SGER facility unless the contractor provides certain documentation from the SGER facility.

To receive a CLEC or a rebate on carbon levy paid marked fuel used at a SGER facility, the contractor must obtain from the SGER facilitiy a confirmation that the contractor’s emissions from the fuel are included in the SGER’s reporting of fuel emissions as direct emissions as defined in the Specified Gas Emitters Regulation.

I operate multiple SGER facilities and multiple oil and gas production processes. Do I have to apply for a carbon levy exemption certificate for each one, and will I receive an exemption certificate for each site and process?

No. When applying for a carbon levy exemption certificate (CLEC) for multiple sites and types of operations, complete one Carbon Levy Fuel User Exemption Application Form (AT5102), and also complete the following schedules, as applicable:

In completing Schedule A, fill in one line for one SGER facility.

In completing Schedule B, fill in the schedule as applicable. If you are applying for exemption certificate for multiple oil and gas production processes, you may state “multiple processes” and describe what may be some of the processes in the column of Oil and Gas Production Process Facility Name. Complete the SITE ID if you are applying for exemption from carbon levy for natural gas (heating purposes) under the Natural Gas Billing Regulation. Complete the Street Address, City/Town or Geographical Co-ordinates columns as applicable, or indicate various locations if there are too many locations to list or the process moves from one location to another location frequently as in the case of drilling rigs. Indicate whether you are supplying marked fuel to other entities, eg contractors at the facility. You may attach an explanation to the Schedule to provide more information if you wish.

In completing Schedule C, fill in the schedule as applicable, similar to the discussion above for Schedule B.

For all Schedules A, B or C, complete the type of fuel you apply for carbon levy exemption.

You will need to maintain books and records to substantiate for those sites and processes you apply for the carbon levy exemption. Books and records maintained are subject to review and audit, as necessary.

If approved for multiple types of activities, you may be issued the following:

  • One CLEC for each SGER facility you apply for exemption;
  • One CLEC for all oil and gas production processes; and
  • One CLEC for fuel used as a Manufacturing or Petrochemcial Raw Material / Diluent /Solvent, if any.

If you are a corporation and you are also the operator of multiple joint ventures, apply under the corporation. The CLEC will be issued under the corporation and include all the joint venture activities you act as operator for. Maintain books and records to substantiate the list of joint ventures you act as operator for. Books and records maintained are subject to review and audit, as necessary.

My company operates multiple mobile drilling rigs and I want to apply for a carbon levy exemption certificate. When filling out Carbon Levy Fuel User Schedule B – Oil and Gas Production Processs (AT5110) how do I enter my numerous mobile drilling rigs?

Where you have multiple mobile drilling rigs, you can enter on one row in the “Oil and Gas Production Process Facility Name” column “mobile drilling rigs".

I am a corporation, but I am also the operator of numerous joint ventures. When I am registering or applying for an exemption certificate or a licence, can I submit one form for all of my operations?

Yes. A corporation who is also the operator of numerous joint ventures may submit one form for their registration, one carbon levy fuel user exemption application form with applicable schedules, or one licence application form as applicable. You will also report all of your combined operations on one carbon levy return.

Who qualifies for an exemption from the carbon levy?

Current exemptions from the carbon levy are indicated below, including:

Specified Gas Emitters Regulation (SGER)/performance standards – Sites covered under the requirements of the SGER/performance standards will be exempted from paying the levy on heating fuels. This exemption ensures the government’s carbon pricing mechanisms are effectively integrated and facilities are not charged for their heating fuel use under both the carbon levy and the SGER/performance standards. More information on the exemption can be found in the Climate Leadership Regulation and on TRA's Carbon Levy Publications and Forms page.

Exemption of Fuel Used in a Production Process before 2023 – More information on the exemption of fuel used in a production process before 2023 can be found in the Climate Leadership Regulation and on TRA's Carbon Levy Publications and Forms page.

Marked gasoline and diesel – Use by farmers for farming operations will be exempt from the levy. Marked fuel purchased for other qualifying off‑road uses will be subject to the levy.

Biofuels – Biofuels, which include ethanol, biodiesel and biomethane, will be exempt to recognize their lower carbon impact. The exemption for ethanol and biodiesel will be administered through lower rates on gasoline and diesel. The lower rates for these fuels will reflect the 5% and 2% renewable fuel requirements for gasoline and diesel, respectively.

Inter‑jurisdictional flights – As Alberta is taking responsibility for the GHG emissions produced within its own jurisdiction only, emissions from fuel used by airplanes flying between Alberta and other jurisdictions will be exempt from the levy.

Indigenous use – Eligible First Nations individuals and bands will be exempt from the levy when fuel is purchased on‑reserve for personal or band use, consistent with exemptions for Alberta's other commodity taxes.

Other exemptions – Fuel sold for export will be exempt from the levy, as it is not consumed in Alberta and the related emissions are not released in Alberta. Industrial exemptions, where deemed appropriate, will apply to situations where fuels are used in industrial processes without releasing GHG emissions.

I think I qualify for an exemption from the carbon levy. How do I apply for a carbon levy exemption certificate?

Details about exemptions and the application for exemption certificates can be found in the Climate Leadership Regulation and on TRA's Carbon Levy Publications and Forms page.

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Carbon Levy - Direct Remitters

When I look at the Remitter Listing Report in TRACS I no longer see any numbers that begin with the letter D. Why is this?

The Act and the Regulation allow recipients that are fuel vendors or suppliers who would regularly be entitled to a carbon levy refund or credit to apply for a licence to purchase fuels exempt from the carbon levy. The Remitter Listing Report lists entities (indicated by numbers that begin with the letter L) that have licences to acquire specific types of fuels exempt from the carbon levy. With the exception of locomotive fuel users, all numbers beginning with the letter D have been removed. The only direct remitters that may sell clear or marked gasoline and diesel, or aviation gas and aviation jet fuel among themselves without collecting and remitting the carbon levy are those that qualify as Full Direct Remitters under the Fuel Tax Act. Click here for a listing of eligible Full Direct Remitters under the Fuel Tax Act.

What evidence of direct export should I require from a purchaser in order to sell fuel without the carbon levy?

A purchaser may come to various types of facilities to purchase fuel intended for direct export from Alberta in bulk. This includes a refinery, terminal, gas fractionation plant, gas processing facility, straddle plant, gas battery, gas gathering system, gas well, oil battery, oil production site or oil sands processing plant or a specified gas emitter.

Generally, if the sale is for direct export from Alberta then no carbon levy is payable. The purchaser should provide documentation satisfactory to TRA that the transportation fuel is destined for export from Alberta. Examples include:

  • bills of lading;
  • a US “Entry Summary” (form 7501);
  • contracts with a carrier to export fuel outside of Alberta;
  • shipping invoice showing details of purchaser and destination;
  • if exported through a pipeline, a pipeline report showing fuel loaded into the pipeline and the destination;
  • you may want to have a statement on your invoices or contracts that the purchaser certifies that the fuel will be exported and/or used outside of Alberta.

If the seller of the fuel has paid carbon levy on the fuel, and subsequently sold the fuel to a purchaser who purchased the fuel exempt from carbon levy for direct export from Alberta, the seller may adjust their next return to recover the carbon levy paid on the sale of fuel without the carbon levy.

What does “miscellaneous fuels” on the registration form mean, and when should I select that option?

Miscellaneous fuels refers to fuels discussed in Section 9 of the Climate Leadership Act (the Act), which includes coke oven gas, refinery gas, low heat value coal, high heat value coal, refinery petroleum coke, upgrader petroleum coke and coal coke.

If you are filling out a registration form, and have multiple types of fuels that are applicable but they are not the fuels listed in section 9 of the Act, then choose “other” and add a description.

Who is a direct remitter?

A direct remitter is any person required to remit carbon levy payments directly to TRA, according to the provisions of the Climate Leadership Act

Who should register as a direct remitter under the carbon levy program?

Please see the direct remitter registration form and guide for details on who should register as a direct remitter under the carbon levy program.

I am already registered as a direct remitter under the Fuel Tax Act. Do I need to also register as a direct remitter under the Climate Leadership Act?

Yes, a separate registration is required by direct remitters, even if they are already registered under the Fuel Tax Act.

I am involved in many different activities that require registration. Do I need to register for each activity?

Yes, you need to register for each activity, but only one registration form per entity is required. Please see the direct remitter registration form and guide for details.

If you need to apply for an exemption certificate or a licence, separate application forms will be required. Details can be found in the Climate Leadership Regulation and on TRA's Carbon Levy Publications and Forms page.

Can I email my completed registration to TRA?

To ensure your information reaches TRA in the most secure and confidential manner, we are accepting completed registration forms by mail or fax only.

Is there a deadline for the carbon levy exemption application?

There is no deadline for application to TRA for a carbon levy exemption certificate. However, the application for a carbon levy exemption certificate should be made as soon as you are aware that you may be eligible so you can obtain an upfront exemption to purchase fuel exempt from the carbon levy. The carbon levy comes into effect on January 1, 2017.

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Carbon Levy - Other Questions

I am selling natural gas from a transmission pipeline. How do I know if I must charge the carbon levy and remit payment to TRA?

If you are a trader of natural gas, please see the FAQ on natural gas trading. It clarifies that carbon levy is not payable on natural gas trading as mentioned, until the natural gas is sold and delivered. The Climate Leadership Act and the Climate Leadership Regulation also operate to require the person who purchases and takes delivery of the natural gas from a transmission pipeline to remit the carbon levy payable on such purchases in a reporting period so that it is received by Tax and Revenue Administration (TRA) not later than 28 days following the end of the period. In addition, the person that sells the natural gas to such purchasers do not have to collect or remit the carbon levy to TRA. More details about the registration for such purchasers will be provided prior to the end of 2016.

Also generally, where natural gas is sold or removed from transmission pipeline and moved into a natural gas distribution system no carbon levy is payable. Therefore, where the sale is to a party that moves the natural gas into their natural gas distribution system the seller is not required to collect or remit carbon levy, and the seller does not need to obtain or verify a carbon levy exemption certificate, licence or other evidence of exemption since there is no carbon levy payable on the sale.

What types of fuels are exempt from the carbon levy for farmers and farming operations in Alberta?

A farmer with an Alberta Farm Fuel Benefit (AFFB) number is eligible to purchase marked gasoline and marked diesel exempt from carbon levy for use by the farmer for farming operations in Alberta. No other fuels (e.g., propane, natural gas, coal, etc.) may be purchased exempt from carbon levy by a farmer for farming operations in Alberta.

I run a small business that doesn’t sell fuel, but I buy fuel to run my business. Do I need to get a carbon tax number to put on my receipts?

No. Unless you qualify for an exemption from the carbon levy, the carbon levy is payable on and included in fuel you purchase to operate your business.

While you may use fuel in the operation of your business or provision of services to your customers, unless you sell fuel to your customers, you do not have to list the fuel nor the carbon levy rate on your invoices.

Situations where you might qualify for an exemption certificate include using the fuel where you do not combust the fuel and no greenhouse gas is emitted (e.g., as raw material, diluent or solvent in a manufacturing or petro-chemical process). See information on exemptions and licences on TRA's Carbon Levy Publications and Forms page.

Who is an authorized representative of a business?

TRA must have authorization to release confidential taxpayer information to a third party representative, such as a lawyer or accountant.  To provide someone with this authorization, an authorized person must complete Alberta Consent Form (AT4930).  An authorized person includes the owner of a proprietorship, partner of a partnership, or a director of a corporation.  Where form AT4930 box 3 allows you to indicate the applicable program, check off “Other” and write “Carbon Levy” unless you are authorizing for all programs. 

I am an Alberta resident. Where can I go to find out how the carbon levy will affect me, including information on rebates?

For general information about the carbon levy and rebates, please visit http://www.alberta.ca/climate-carbon-pricing.aspx#family.

My question is not listed above. Who can I contact for more information?

For general questions about the Climate Leadership Plan, please refer to the Alberta Climate Leadership Plan website.

For questions about the administration of the carbon levy program, please send an email to TRA at TRA.CarbonLevy@gov.ab.ca, or call TRA at 780-644-4300 (if calling long distance within Alberta, call 310-0000, then dial 780-644-4300).

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Page last updated: April 10, 2017