Collecting the Fuel Tax
The fuel tax applies at the current rates to fuel sold in Québec.
The rates vary based on:
- the type of fuel;
- the region where the fuel is sold.
The GST and QST apply in addition to the fuel tax.
Certain fuel types are exempt from the fuel tax, including:
- natural gas and propane gas;
- solvents derived from petroleum;
- gasoline intended for chemical use;
- coloured fuel oil used for heating or to operate a stationary engine or certain propulsion engines.
If you are a retail dealer (or retailer) of fuel in Québec, you are an agent of Revenu Québec and, as such, must collect the fuel tax from the consumer at the time of the sale.
See Reporting and Remitting the Fuel Tax – Retail Dealers (Retailers) for information on reporting and remitting amounts collected under the Fuel Tax Act.
As a wholesale dealer (or wholesaler) of fuel, you are an agent of Revenu Québec and, as such, are required to collect an amount equal to the fuel tax from every person to whom you sell or deliver fuel (or cause fuel to be delivered) in Québec. However, if you sell fuel to a person who has an agreement with us, you must collect the amount equal to the tax according to the terms and conditions of the agreement.
Revenu Québec can enter into an agreement with a person in order to:
- facilitate the collection and remittance of the tax imposed under the Fuel Tax Act;
- prevent the double payment of the fuel tax on the same fuel;
- make the necessary deductions to account for evaporation or accidental loss of fuel.
See Reporting and Remitting the Fuel Tax – Wholesale Dealers (Wholesalers) for information on reporting and remitting amounts collected under the Fuel Tax Act.