Tax and Revenue Administration Fuel Tax Act Information Circular AV-1

Note: Due to the Government of Alberta reorganization in November 2004, where applicable, the web versions of our documents have been updated to change references from "Minister of Revenue" or "Provincial Treasurer" to "Minister of Finance". References to "Revenue Canada" or "Canada Customs and Revenue Agency" have been changed to "Canada Revenue Agency" to reflect that name change as well. The paper version of this document is available from Tax and Revenue Administration and if applicable, will be updated as time permits.

This information circular provides details of Alberta's program to provide relief from the provincial aviation fuel tax on qualifying international flights.

• Fuel Tax Exemption
• Fuel Tax Rebate
• General Limitations

Fuel Tax Exemption

An up-front exemption will be provided on flights that also qualify for up-front exemption from the federal excise tax. This exemption is available to foreign commercial carriers on international flights originating in Alberta. The exemption will be provided by the fuel supplier at time of billing, based on the federal documentation requirements. No additional documentation is required in order to obtain the provincial tax exemption.

Fuel Tax Rebate

International commercial flights that do not qualify for the exemption may qualify for a rebate. The rebate applies in the following cases:

• qualifying international flights of domestic carriers;
• qualifying international flights that have a stopover elsewhere in Canada;
• qualifying international charter and other non-scheduled flights.

In order to obtain the rebate, a carrier must file a monthly rebate application (Form AT-393) with Alberta Finance, Tax & Revenue Administration. The application must be accompanied by supporting documentation. In the case of flights that qualify for a rebate of excise tax from the fuel supplier, a copy of the summary information provided to the supplier will suffice. In all other cases, information required will consist of the date of purchase, quantity, name of seller and purchaser, tail number and make/model of aircraft, flight number, departure point, and destination.

General Limitations

A commercial flight is one where passengers or cargo is transported for payment or other consideration. Flight crews are not considered passengers, and their personal belongings are not considered cargo. Private aircraft are not considered commercial. Flights do not need to be non-stop to qualify; aircraft may take on additional passengers or cargo at another location outside Alberta provided the ultimate destination is outside Canada. However, flights that offload passengers or cargo at another location outside Alberta before departing for an international destination do not qualify. This program applies to aviation fuel used on or after March 1, 2004.