If my business rents tools and equipment that may include fuel (e.g. propane, natural gas, diesel and kerosene), do I need to collect carbon tax from my customers for the fuel?
It depends. If you rent or lease equipment with fuel to your customer for a single price (e.g. a fixed daily rate), you are considered to be the end purchaser (consumer) of the fuel. This means that you are required to pay carbon tax to your supplier, and you do not collect carbon tax from your customer. If your customer returns the equipment with less fuel than you originally provided, and you charge your customer a fee for that fuel, carbon tax applies in the same way as described above. You pay carbon tax to your supplier, and you do not collect carbon tax from your customer because the fee you charge is considered to be a penalty fee and not a sale. If you rent or lease equipment with fuel to your customer and you separately itemize the fuel, other than natural gas or propane, on your customers invoice, your customer is considered to be the end purchaser (consumer) of the fuel and you are the retail dealer. You are required to collect carbon tax from your customer to reimburse your
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