Frequently Asked Questions About Refunds
- I paid more tax on my purchases than I collected on my sales because the same method of volume measurement was not used. Can I apply for a refund?
- What is the time frame for filing a refund application? What kind of documentation do I need?
- I operate a vehicle that powers auxiliary equipment. Am I eligible for a refund?
- How do I get information on fuel tax refunds?
I paid more tax on my purchases than I collected on my sales because the same method of volume measurement was not used. Can I apply for a refund?
Fuel taxes must be calculated and accounted for using the same method of volume measurement (ambient or volume corrected) used to calculate the product selling price. Collectors and wholesalers are authorized to provide ambient temperature allowances (0.25% for fuel tax) to their customers to offset the tax differential where a customer purchases product measured on a volume corrected basis but dispenses only on an ambient temperature basis. Any person, including a retailer, who has remitted to the Minister an amount in excess of the tax collectable and payable by the person (ie. who has not received the allowance), may apply directly to the Client Accounts and Services Branch for a refund.
For further information on this subject, please refer to Ontario Tax Bulletin FT/GT 2-2000.
What is the time frame for filing a refund application? What kind of documentation do I need?
All refunds authorized under the Fuel Tax Act and its Regulations have a four year time limitation period effective December 18, 1998. The following records are required for filing a refund based on unlicensed vehicles or equipment usage:
- individual records of gasoline or fuel issues to each unlicensed unit;
- invoices for gasoline or fuel purchases which clearly indicate the amount of tax paid; and
- a periodic gasoline or fuel inventory reconciliation, detailing opening inventory, purchases, closing inventory, taxable usage, and non-taxable/refundable usage.
The following records are required for filing a refund based on gasoline or fuel used in "power take-off" (PTO) auxiliary equipment located on a licensed vehicle:
- actual recorded issues of gasoline or fuel to the licensed vehicles equipped with auxiliary equipment;
- a monthly or quarterly record of distance traveled by PTO equipped licensed vehicles; and
- records approved by the Client Accounts and Serivces Branch for each specific PTO application to determine refundable quantities of gasoline or fuel using an approved allowance factor.
I operate a vehicle that powers auxiliary equipment. Am I eligible for a refund?
Yes, provided that the fuel is coming from the same tank which powers the motor vehicle and proper proof is submitted by the claimant to support a power-take-off (PTO) claim. Proof includes a list showing each vehicle for which a PTO refund is being claimed and the type of auxiliary equipment being used. This list must indicate the make, model and license plate number of the vehicle. Also, the manufacturer's specifications of the auxiliary equipment must be included with the claim.
Further information may be obtained by referencing Ontario Tax Bulletin FT/GT 4-2000.
Where the auxiliary equipment of a motor vehicle has its own separate fuel tank, coloured fuel should be used; no refund is available if clear fuel is used.
How do I get information on fuel tax refunds?
You may call the Client Accounts and Services Branch directly at 1 866 ONT-TAXS (1 866 668-8297) or write to:
Ministry of Revenue
Client Accounts and Services Branch
Fuel Tax Program
33 King St W
PO Box 625
Oshawa ON L1H 8H9
