Monthly Reports

Fuel tax collectors report and remit tax by the 20th day of each month, based on previous month's sales. For the total period of April to March, inclusive, of each year, allowances of up to 0.50% for gasoline and 0.25% for diesel are permitted for losses and shortages due to handling and temperature variations at terminals and bulk plants.

Nova Scotia has joined the International Fuel Tax Agreement (IFTA) effective January 1, 1996. All interjurisdictional carriers, operating commercial vehicles in Nova Scotia, may obtain registration decals ($10.90/year for decals plus annual licence fee of $27.21) for each qualifying interjurisdictional vehicle and submit quarterly reports together with the fuel consumed by them in participating jurisdictions. Non-IFTA interjurisdictional carriers operating qualifying vehicles have the option of purchasing Single Trip Permits in lieu of registration decals and quarterly reporting.

The Nova Scotia Retail Gasoline Dealers' Association receives, for distribution to persons who have sold gasoline at retail sales, a commission at the rate of 11 cents per 1,000 litres.

Refunds are available for tax paid on fuel used:

• by municipalities

• by school boards

• by school boards operating driver education programs

• by representatives of foreign states who are certified by the Office of Protocol, Foreign Affairs and International Trade Canada to have diplomatic status

• for vehicles equipped to fight fire

• for commercial ferries

• for railway locomotives

• for equipment used for the manufacture and production of goods for sale (see Manufacturing Tax Guide)

• for equipment used by commercial farmers (see Farming Tax Guide)

• for equipment used by commercial loggers (see Logging Tax Guide)

• for equipment used by commercial aquaculturist (see Aquaculturist Tax Guide)

• for drilling equipment for drilling wells for water

• for fishing boats (see Fishing Tax Guide)

Refund forms can be obtained by calling Service Nova Scotia & Municipal Relations at (902) 424-2850 or on our website. (See Application For Refund form).

Wholesalers and retailers may claim tax refunds for stolen, accidentally destroyed or contaminated products. Wholesalers may claim tax refunds on some uncollectible accounts.

Coloured fuel is available for use in non-taxable applications. However, in the following instances, because it is not possible to use coloured fuel, clear fuel is used and a refund is available:

• Clear fuel used to operate auxiliary equipment where the same tank supplies fuel for the vehicle engine and the auxiliary equipment

• The qualified consumer buys his fuel from a retailer who does not have coloured fuel

• The qualified consumer chooses to buy clear fuel

• The qualified consumer has a multi-use piece of equipment, such as a forklift

Every wholesale agent of gasoline, propane and diesel oil must enter into an Agent's Agreement with the Province.

A Vendor's Permit is required to purchase fuel from a bulk plant for resale. A Consumer’s Exemption permit is required to purchase marked fuel from a bulk plant or a restricted retail vendor. An IFTA licence or a temporary trip permit is required to operate an interprovincial vehicle of 11,797 kg (26,000 lbs) or more in Nova Scotia. For more information, visit the Nova Scotia Permits Directory.

Application Forms for permits are also available form the Forms and Applications area of this site.

Security Requirements

The Commissioner may require an agent, subagent, collector or applicant for a registration certificate to deposit with the Minister a bond by way of cash or other security in such amounts as may be determined by the Commissioner, which shall not in any case be greater than an amount equal to six times the amount of the tax estimated by the Commissioner to be the amount normally collected by the applicant or collector.

Cancellation or Suspension

• Grounds for cancelling a permit include:

• contravening the provisions of the Revenue Act and the regulations or the terms of an agreement;

• failure to remit tax, or to file a return;

• failure to post the required security;

• found guilty of an offence under the Act Revenue Act and the regulations; or

• failure to pay a required fee.

Audit

In making an assessment, the Commissioner shall not consider a period or periods of time greater than four years prior to the date of commencement of the inspection, audit or examination of the books of account, records or documents, unless the Commissioner deems the person did not exercise the degree of care, diligence and skill to prevent an offence that a reasonably prudent person would exercise in comparable circumstances, or if there is evidence that the person has committed fraud, and the results may be applied over the period or any part of the period.

Fines and Penalties

The following penalties can be imposed under the Revenue Act:

• 5% - failure to pay or remit tax

• 25% -100% - wilful failure to remit tax collected

• 25% - failure to pay tax by wilfully making a false statement

• 25% - failure to maintain records

Minimum Fines for contravention of Part I of the Revenue Act - Gasoline and Diesel Oil Tax

A purchaser or consumer who contravenes Part I of the Revenue Act is liable, on summary conviction, to a fine of not less than $500.00 for the first offence; not less than $1,000.00 for the second offence; and not less than $2,000.00 for the third or subsequent offence; or

• to imprisonment for a term not exceeding ninety days for a first offence; or

• a term not exceeding one year for a second or subsequent offence; or

• to both fine and imprisonment.

An agent, wholesaler or vendor who contravenes Part I of the Revenue Act is liable, on summary conviction, to a fine of not less than $1,500.00 for the first offence; not less than $2,500.00 for the second offence; not less than $5,000.00 for the third or subsequent offence; and a fine equal to two times the amount of tax that should have been collected, remitted or paid as determined by the Revenue Act; or

• to imprisonment for a term not exceeding six months for a first offence; or

• to imprisonment for a term not exceeding one year for a second or subsequent offence; or

• to both fine and imprisonment.

A person who sells gasoline or diesel oil to a vendor or a purchaser without holding a permit as required under the Revenue Act Regulations is liable, on summary conviction, to a fine of not less than $1,500.00 for a first offence; not less than $2,500.00 for a second offence; not less than $5,000.00 for a third offence, and a fine equal to two times the amount of tax that should have been collected, remitted or paid as determined by the Revenue Act; or

• to imprisonment for a term not exceeding one year; or

• to both fine and imprisonment.

Upon the conviction of a person who holds a driver's licence, vehicle permit or certificate of registration issued pursuant to the Motor Vehicle Act, the Registrar of Motor Vehicles shall suspend the licence, permit or certificate of registration of the vehicle in respect of which the violation was committed for a period of thirty days for a first conviction, ninety days for a second conviction and six months for any subsequent conviction.

Upon the conviction of a person who has been issued a permit of any kind pursuant to Part I of the Act, the Commissioner shall suspend any such permit in so far as it relates to premises, facilities, vehicles or an activity in relation to which the violation occurred for a period of sixty days for a first conviction, six months for a second conviction and one year for any subsequent conviction.

Interest is compounded monthly, with the rate changing quarterly. Interest on refunds is calculated from the date the tax was remitted until the refund is paid or applied to a vendor's account, but only on tax paid in error, or a paid assessment that was later reversed. Interest on penalty assessments and any unpaid tax is calculated from the date when the default first occurred until the assessment is paid.

Colouring/Tax Exempt

Gasoline and diesel oil (including middle distillate fuels such as furnace oil and stove oil) coloured with Nova Scotia dye by wholesalers at approved dye sites (all terminals) is exempt from tax.

Commercial farmers, fishermen, lumbermen, manufacturers and others using fuel for exempt purposes, may use coloured fuel, or pay the tax if clear fuel is used. If tax is paid, they may apply for a refund.

Inspection Program

Compliance staff inspect consumers of marked fuel, and consumers of clear fuel applying for a refund to ensure the fuel was used as claimed. They also inspect bulk plants. This includes an analysis of the dyeing procedures. They assist police agencies with fuel related investigations. Improperly dyed fuel results in assessments against the supplier. Improper usage of fuel by consumers results in assessments, charges and warning letters.

Registration decals and Nova Scotia Trip Permits are monitored and enforced by the Department of Transportation and Infastructure Renewal at weigh scale sites.

Other Issues

Temperature Adjustment (Volume corrected measure)

The major oil companies in Nova Scotia are well advanced in a program to convert measuring equipment at every level of the distribution chain to automatically temperature correct at 15°C.