Vendor Use Fuel Tax Return, CDTFA-501 - AV
GENERAL INFORMATION
Fuel vendors must file this return to report sales of the following types of fuels (when sold and delivered into the fuel tanks of motor vehicles):
- Compressed natural gas (CNG)
- Liquid natural gas (LNG)
- Liquefied petroleum gas (LPG)
- Dimethyl ether (DME)
- Dimethyl ether-liquefied petroleum gas blends (DME-LPG blends)
- Alcohol fuels containing not more than 15 percent (0.15) gasoline or diesel fuel (for example, ethanol and methanol)
- Kerosene, distillate, and stove oil
- Any fuel used or suitable for use in a motor vehicle, other than fuel subject to the diesel fuel tax or the motor vehicle fuel license tax
Fuel vendors who sell and deliver the fuels described above into the tanks of motor vehicles must obtain a permit to collect and report use fuel tax for such sales (note exemptions below). Vendors must also provide purchasers (users) with a receipt for each sale (R&TC 8732). The receipt must show the name and address of the user (the sales invoice when paid constitutes a receipt) (Regulation 1332).
FILING REQUIREMENTS
Vendors must file returns. The return and tax payment are due on the last day of the month following the end of the reporting period. A vendor shall maintain complete records of all sales or other dispositions including self-consumed fuel, inventories, purchases, receipts, and tank gaugings or meter readings, of liquefied petroleum gas, and any other fuel the use of which is subject to the use fuel tax (Regulation 1332).
Complete Appropriate Schedules
You must first complete the applicable schedules. Information from these schedules will be used to complete parts of the return.
Which Schedules should you complete?
Select “Yes” or “No” to the following questions.
Did you sell or deliver fuel? (schedule A)
Did you sell to users authorized to purchase ex-tax fuel under regulations 1319 and 1320? (Schedule B)
Would you like to report tax credit on bad debt losses? (Schedule C)
Would you like to report tax recoveries on bad debt losses? (Schedule D)
Would you like to report delinquent or uncollectable accounts? (Schedule E)
Schedule A – Fuel Sold and Delivered into Fuel Tanks of Motor Vehicle by Location for Registered Sites
Use this schedule to report by business address the number of units/gallons sold and delivered into fuel tanks of motor vehicles for each fuel type. The five digit Site ID for each location and the full address for the location being reported is listed on the schedule. Complete this table by entering Units of Gallons, rounding to the nearest whole number.
Schedule B - Sales to Users Authorized to Purchase Ex-Tax Fuel under Regulations 1319 and 1320
Use this schedule to report sales of fuel for which you did not collect use fuel tax (fuel sold and delivered into the fuel tanks of motor vehicles with a valid CDTFA-108, Authorization to Sell Fuel Without Collecting Use Fuel Tax.) Complete this table by clicking on "Add a Record" entering Units of Gallons, rounding to the nearest whole number to the applicable sections.
Enter the following:
User's Permit Number
User's Name
Street Address
City
State
Zip
(Click button to Verify Address)
Compressed Natural Gas (Total Number of Units)
Liquid Natural Gas (Total Number of Units)
Liquefied Petroleum Gas, Dimethyl Ether, Dimethyl Ether-Liquefied Petroleum Gas Blends (Total Number of Units)
Alcohol Fuels (Total Number of Gallons)
Kerosene, Distillate, Stove Oil, and other fuels (Total Number of Gallons)
Click on the “Add” button.
Schedule C - Tax Credit on Bad Debt Losses
Use this schedule to report any amount of tax that you have been unable to collect from users. The credit should be taken on the return for the period the account is charged off for income tax purposes. Vendors using the reserve method to account for bad debts should take the credit on the return for the period in which the account was charged against the reserve. To claim this credit you must have reported and paid the tax on a return filed by you with the CDTFA and you must have filed CDTFA-120, Notice of Credit for Bad Debt Losses, (refer to Schedule E), and have written off the account as a bad debt for income tax purposes. You can claim a credit only for the amount of tax that applies to the unpaid portion of the account.
Complete this table by clicking on “Add a Record”
Enter the following:
Date of Sale
User's Permit Number
User Name
Street
City
State
Zip
(Click button to Verify Address)
Gallons or Units (Total Number of Gallons or Units)
Amount of Delinquent Tax
Click on the “Add” button.
Schedule D - Tax Recoveries on Bad Debt Losses
Use this schedule to report recoveries of delinquent tax payments for users (accounts previously reported on Schedule C as bad debt losses).The tax collected must be included on the return for the period due which the collection is made. When an account of the purchaser is no longer delinquent or amounts remaining unpaid over 60 days have been cleared and the vendor is satisfied that the remainder of the account will be paid, the vendor should complete CDTFA-120, Notice of Credit for Bad Debt Losses, by indicating the payment received. No tax credit is allowable for any portion of a debt recovered that is retained by or paid to any person as compensation for services or expenses in collecting the account.
Complete this table by clicking on “Add a Record”
Enter the following:
User's Permit Number
User Name
Street
City
State
Zip
(Click button to Verify Address)
Amount of Tax Recovered
Click on the “Add” button.
Schedule E – Delinquent or Uncollectable Accounts
Use this schedule to report any amounts unpaid arising from the sale of fuel or delinquent accounts on which you have been unable to collect payment. For each delinquent account you must complete CDTFA-120, Notice of Credit for Bad Debt Losses. Retain a copy for your records. Attach a copy to your return. In order to properly report all delinquent accounts you need to complete CDTFA-120 within 90 days of the end of the calendar month that the sale took place. For example, if you sold 100 gallons of fuel on 1/15/2021, you would have until the end of the April 2021 tax return period to claim this account as delinquent and submit CDTFA-120. Failure to claim this as a delinquent account in a timely fashion will constitute a waiver of the credit that might otherwise be allowable as explained in Regulation 1331.6.
Complete this table by clicking on “Add a Record”
Date of Sale
User's Permit Number
User Name
Street
City
State
Zip
(Click button to Verify Address)
Gallons or Units (Total Number of Gallons or Units)
Amount of Delinquent Tax
Click on the “Add” button.
After completing and adding the appropriate schedules, the system will automatically populate and display entries to the Compressed Natural Gas, Liquid Natural Gas, Liquefied Petroleum Gas, Dimethyl Ether, Dimethyl Ether-Liquefied Petroleum Gas blends, Alcohol Fuels, Kerosene, Distillate, Stove Oil and Other Fuels tables displayed below.
Deductions: The United States Government is not included in the definition of a “person (R&TC 8606) and therefore, is not subject to the use fuel tax. However, it is exempt only if purchased with a credit card belonging to the Government.
Vendors are not required to collect use fuel tax for sales of compressed natural gas, liquefied petroleum gas, dimethyl ether, dimethyl ether-liquefied petroleum gas blends, or liquid natural gas if the user's vehicle has a current California Department of Tax and Fee Administration (CDTFA) exemption sticker affixed and the vendor has collected written representation (R&TC 8651.6 (B)) that the annual flat rate tax has been paid by the user. The sticker specifies the type of fuel that is exempt from tax (only the fuel specified on the sticker is exempt for that vehicle).
Attachments
Based on your input you may be required to add additional documents. For example, to add the CDTFA-120 Notice of Credit for Bad Debt Losses, click on the “Add” button and upload document.
Summary (the system will automatically calculate the items below)
Tax due
Tax credit on bad debt losses (sum from Schedule C)
Balance of tax
Tax recoveries on bad debt losses (sum from Schedule D)
Total tax due
Penalty: A 10% (0.10) penalty on the tax amount is due if you ae paying after the due date of the return.
Interest: Interest is due on the tax amount if you are paying after the due date of the return. The interest rate applies for each month, or fraction of a month, that your payment is late.
Total amount due