Common use of INSTRUCTIONS FOR SELLERS Clause in Contracts

INSTRUCTIONS FOR SELLERS. You must obtain a completed and signed copy of this certification form before you sell coloured fuel, marine diesel or locomotive fuel to a purchaser for their own use: • through a cardlock (including at a terminal rack or bulk plant), or • in an amount greater than 45 litres. You must keep this certification on file. You may make additional sales of fuel based on this certification if: • the information on this certification is current, and • you can link each sale to this certification (e.g. by an account or reference number). You do not need to obtain this certification if you: • transfer the fuel directly into the supply tank of a ship that is in or on the water, • sell the fuel to a farmer that has provided you a completed and signed Certificate of Exemption – Farmer (FIN 458), or a copy of their valid Farmer Identify Card issued by the BC Agricultural Council, or • sell the fuel to a purchaser for resale (they must be an authorized coloured fuel seller to purchase coloured fuel for resale). If a certification is required and you have not obtained one from a purchaser, you must collect tax from the purchaser on the sale of the fuel at the clear motor fuel tax rate (i.e. the same rate as clear gasoline or clear diesel) not at the rate of 3 cents per litre. For information on tax rates, see Bulletin MFT-CT 005, Tax Rates on Fuels. If the tax you collect is greater than the security you paid on the fuel, you must remit the additional tax. If you sell coloured fuel, marine diesel or locomotive fuel without obtaining the required documentation and do not collect tax at the clear fuel rate, you may be subject to a penalty equal to the difference between the tax you collected and the tax you were required to collect, as well as additional penalties and interest.