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How does one calculate the HST from a gasoline receipt for fuel purchased in BC?

By CRA |

Rob asked:

I do know that for every other product, except fuel, you multiply the total
dollar amount by 12, then divide by 112, BUT apparently this is not the case with automotive gasoline.

Can you help? Thank You!

CRA answered:

The normal rate for HST in British Columbia is currently 12 per cent. However, for some items the federal government agreed to administer certain rebates for B.C. Some of these are point-of-sale or "instant" rebates, which operate much like PST exemptions.Consumers only pay 5 per cent HST (the federal part of the tax) on point-of-sale rebate items. Motor fuels are included in the point-of-sale rebate.

Motor fuels that are eligible for the rebate include gasoline, gasoline-ethanol blends, diesel and biodiesel when used in motor vehicles, locomotive fuel used in trains, marine diesel used in boats, and aviation fuel and jet fuel used in aircraft. Not included are propane, natural gas and hydrogen.

For gasoline, than, rather than calculate for 12 per cent HST, calculate for 5 per cent.

For example, if you sell $40 worth of gas, the calculations would look like this:

  • HST not included in price - $40.00 Г— 5% = $2.00 HST
  • HST included in price- $42.00 Г— 5/105 = $2.00 HST

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