Published: August 2007
Content last reviewed: September 2009
ISBN: 978-1-4249-5017-1 (Print), 978-1-4249-5019-5 (PDF), 978-1-4249-5018-8 (HTML)
Gasoline tax is imposed on all grades of gasoline at the time of purchase. A refund of the tax paid may be claimed by the purchaser when the gasoline is used:
Note Gasoline used outside of Ontario does not qualify for a tax refund. Gasoline used in any licensed vehicle does not qualify for a tax refund.
Gasoline used in Ontario to power auxiliary equipment located on a licensed vehicle qualifies for a tax refund. A unit powered from an engine which uses gasoline from a vehicle's fuel tank is considered a "Power Take-Off" (PTO) function and qualifies for a PTO refund. To qualify for the refund, the licensed vehicle cannot be principally used for the transportation of passengers or for pleasure or recreational uses.
In most of these cases, it is not possible to accurately measure the amount of gasoline used. As a result, refund allowances are based on the equipment manufacturer's fuel consumption specifications as approved by the ministry. Refund allowances have been established for a number of PTO operations and are available on request from the ministry.
For information on the PTO refund for interjurisdictional carriers, please refer to Ontario Tax Bulletin No. FT/GT 4-2000.
An application for refund must be completed and submitted to the Ministry within four years from the date the tax for which a refund is sought was paid. Any portion of a claim filed after this time period will be disallowed. Purchase invoices pertaining to the claim must be submitted with the refund application. Invoices will not be returned unless requested by the applicant at the time of filing.
The GTA requires that an invoice covering the sale of gasoline must contain the following information:
In addition, proof of payment of the tax charged on supporting invoices is also required.
Records must be retained by claimants for seven years for audit purposes.
A permanent reference number is assigned to each refund claimant. This number should be quoted when corresponding with the Ministry about gasoline tax refunds.
Important: Penalties exist for misrepresentation of a material fact on the application for the refund or on any document used to support the application. No refund will be paid if an applicant misrepresented a material fact on an invoice submitted in support of a refund claim.
|A. Cooking||Refund on business use only||Non-taxable|
|B. Heating (accommodation)||Refund on business use only||Non-taxable|
|C. Propulsion of:|
|i) Licensed Vehicles||Taxable||Taxable|
|ii) Working Boats (Tugs, dredges)||Refund on business use only||Non-taxable|
|iii) Motorized Snow Vehicles (Pleasure Use)||Taxable||Non-taxable|
|iv) Motorized Snow Vehicles||Refund on business use only||Non-taxable|
|v) Pleasure Craft||Taxable||Non-taxable|
|vi) Freighters||Refund on business use only||Non-taxable|
|D. Heating (construction)||Refund on business use only||Non-taxable|
|E. Burning Material||Refund on business use only||Non-taxable|
|F. Generation of Electricity||Refund on business use only||Non-taxable|
|G. Lighting (lanterns, lamps)||Refund on business use only||Non-taxable|
|H. Propulsion of Unlicensed Equipment (Business Use)||Refund on business use only||Non-taxable|
|I. Propulsion of Auxiliary Unit on Licensed Vehicle (via PTO/common fuel tank)||Refund based on Ministry Approved PTO allowance.||Refund based on Ministry Approved PTO allowance.|
|J. Propulsion of Auxiliary Unit on Licensed Vehicle (via separate fuel tank)||Refund based on direct is-sues to separate tank.||Non-taxable|
If this bulletin does not completely address your particular situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact:
Ministry of Finance
Client Services Branch
Motor Fuels and Tobacco Tax
33 King Street West
Oshawa ON L1H 8H9