Frequently Asked Questions about the Tax Agreement — Fuel Tax and Gasoline Tax
Is there a tax settlement agreement between the provinces of Ontario and Quebec on transfers of gasoline, propane and aviation fuel?
Yes. The agreement between the governments of Ontario and Quebec provides for the settlement of tax on the transfers of gasoline, propane, and aviation fuel between the two provinces. This ensures that the correct amount of tax is paid to the province in which the product is consumed.
The agreement reduces the tax remitting, refund, and administrative requirements for suppliers who engage in cross border transfers of gasoline, propane and aviation fuel. Importers, exporters, and interjurisdictional transporters are still required to register with, and report to the minister.