Share with your friends

Canada: Alberta facilities to register with CRA regarding fuel charge

Canada: Alberta facilities to register with CRA

Businesses in Alberta need to consider their action steps concerning their fuel charge obligations, now that Alberta’s technology innovation and emissions reduction (TIER) system has been approved.


Related content

Alberta’s TIER regulations meet the federal government’s requirements for carbon pollution pricing, and thus replace the output-based pricing system (OBPS) component of the federal carbon pollution pricing backstop. Finance Canada released draft regulatory proposals under the Greenhouse Gas Pollution Pricing Act to integrate TIER facilities with the federal fuel charge (FFC), effective 1 January 2020.

Facilities that will be regulated under TIER, and have been designated as such by the federal government, will be exempt from the FFC on fuel that is used at a covered facility. To qualify for this exemption, the facility must:

  • Be registered with the Canada Revenue Agency (CRA) as a “registered emitter”
  • Purchase the fuel with an exemption certificate

The FFC will apply on fuel delivered in Alberta starting 1 January 2020 unless a valid exemption certificate is provided to the fuel supplier.

Facilities that are not granted a “registered emitter” status will be subject to FFC for fuel used at their facility (e.g., fuel used in the production process to power equipment or flared fuel). These facilities will not be subject to TIER in respect of their emissions.

KPMG observation

Regulated TIER facilities need to consider acting now to have CRA registrations in place and effective 1 January 2020 so that they can issue valid exemption certificates to their fuel suppliers before their first fuel purchase in 2020.

Read a December 2019 report [PDF 177 KB] prepared by the KPMG member firm in Canada

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal