Guide for Completing the Application for Refund Summary and Schedule 22 TEU - Vehicle Testing or Export Out Of Ontario in Fuel Tanks of Vehicles

Published: March 2010
Content last reviewed: March 2010

As announced in the 2013 Ontario Budget, the fuel tax exemption for biodiesel is repealed effective April 1, 2014, making biodiesel taxed in the same way as diesel fuel.

The information in this guide will help you complete the Vehicle Testing or Export Out Of Ontario in Fuel Tanks of Vehicles Clear Fuel Schedule 22 - TEU [PDF - 273 KB]. The guide also provides information about supporting documents, records retention, time limit for applying for a refund, direct bank deposit, and will help you to determine whether you are eligible to claim a refund. The information in this guide is provided as a guideline only and does not replace the law found in the Fuel Tax Act and related regulations.

Who May Use This Form?

The refund is available to any auto manufacturer who uses clear fuel in testing of a motor vehicle engine or exporting clear fuel out of Ontario in the fuel tank of vehicles.

Supporting Documents

Include with your application, all relevant purchase invoices, receipted by your supplier, as evidence of the payment of the tax and the date of payment.

The invoices must show:

  • the name and address of the vendor and of the purchaser
  • the selling price per litre
  • the amount of tax charged
  • the quantity of product sold
  • the date of the sale
  • the location where title to the product changed from the vendor to the purchaser
  • biodiesel fuel invoices must clearly indicate the percentage of biodiesel component in the purchase.

The date of invoice payment should be provided and confirmed with copies of cancelled cheques and/or a statement of account.

The records and documents required to be maintained and retained for audit include, but are not limited to:

  • daily clear fuel dispensation reports for all the car-assembly plants indicating the litres dispensed and the purpose of usage. These reports should distinguish the litres used in the assembly line and the litres used outside the assembly area in the licensed and unlicensed units and should enable ministry personnel - to verify the taxable and non-taxable consumption;
  • a monthly clear fuel inventory reconciliation report for each bulk storage tank detailing opening inventory, purchases, closing inventory, taxable usage, and non-taxable/refundable usage;
  • list of equipment in which clear fuel was used and a fuel tax refund is being claimed, indicating the year, make, model, VIN, horsepower, general description and whether the equipment is licensed under Ontario's Highway Traffic Act;
  • individual fuel purchase invoices receipted by the fuel supplier. These invoices must show: date of purchase, type of product, quantity, price and tax paid, date of payment, name and address of supplier, and name and address of purchaser;
  • engineering specifications indicating each of the standard fill rates at the assembly line, by vehicle category, together with the period to which the fill rates are applicable;
  • the highway testing policy documents relating to the newly produced vehicles and the list of dealer plates used for testing the new vehicles;
  • monthly management production reports for all car-assembly plants indicating the total number of units produced and the market destination of each unit by specifically indicating the names of destination jurisdictions within and outside of Canada;
  • detailed export documentation, including Canada Customs reports and internal management reports, to enable the auditor to identify the exported units by destination jurisdictions within and outside of Canada, type of units exported and the quantity of fuel remaining in the tank of these exported vehicles;
  • monthly management reports indicating the vehicles imported together with the market destination by country and province within Canada;
  • Maintain detailed import documentation and reports, including Canada Customs reports and internal management reports, to enable the auditor to verify the number of vehicles imported into Ontario and the quantity of fuel remaining in the tank of the imported vehicles. The auditor will advise of a sample period(s) for audit purposes;
  • Certification by the jurisdiction to which the vehicle has been exported to the effect that tax has been paid to that jurisdiction on the fuel in the fuel tank on the vehicle. In the event that the fuel is exempt from any tax in the jurisdiction to which the vehicle has been exported, a certification must be provided from that jurisdiction that the fuel is exempt from any tax; and
  • any other records or documents requested by the auditor before or during the audit.

Please ensure that copies of invoices previously claimed are not included in support of this claim.

Claims under $500

If your annual claim total is less than $500, you are not required to send the supporting documentation to the Ministry of Finance (ministry) with your refund application. However, you must retain the supporting documentation noted in the above section, for a period of seven years and provide the information to the ministry upon request.

Change of Information

(Preprinted Application Only)

When completing a preprinted form please make any required corrections by hand on the refund application before submitting.

Tax Rates

The Ontario tax rates are found on the tax rate table provided on the Application for Refund – Tax Exempt Usage (TEU).

When completing the Application for Refund online the Ontario tax rates are automatically provided on the schedules.

Identification Number

Provide your federal business number or your MFTT reference number as your Identification No. on the Application. When communicating with the ministry, include your identification number on all correspondence and forms.

Direct Bank Deposit

For your refund to be deposited directly into your bank account, please provide a cheque marked VOID showing your name and address and attach it to your refund application or mail it to the Ministry of Finance with a letter requesting direct deposit. Remember to quote your Identification Number (Business Number or MFTT Reference Number) on your letter.

If you wish to cancel direct deposit, please send a letter to the Ministry of Finance requesting a cancellation.

Records Retention and Time Limit

The refund application must be received, by the ministry, within four years from the date of your tax payment. All records, documents and receipts pertaining to your tax refund claim must be kept for seven years for audit purposes.

For further information regarding records retention, please refer to the Tax Information Bulletin entitled Retention/Destruction of Books and Records. Copies are available at ontario.ca/finance or by calling 1 866 ONT-TAXS (1 866 668-8297).

Freedom of Information

Personal information contained within the Application for Refund is collected under the authority of the Fuel Tax Act, R.S.O. 1990, c.F.35, and will be used for the purposes of the Fuel Tax Act. Questions about this information collection should be directed to:

Senior Manager, Account Management
Client Services Branch
Ministry of Finance
33 King Street West, PO Box 625
Oshawa ON  L1H 8H9

Mailing Address and Enquiries

Ministry of Finance
Motor Fuels and Tobacco Tax
33 King Street West, PO Box 625
Oshawa ON  L1H 8H9

Toll free 1 866 ONT-TAXS (1 866 668-8297)
Hours of Service Monday to Friday 8:30am to 5:00pm
Teletypewriter (TTY) 1 800 263-7776
Fax 905 433-5680
Website ontario.ca/finance

PLEASE NOTE

  1. An application for refund includes the Application for Refund - Summary form and an Application for Refund - Schedule.
  2. When completing the refund application online, you will be automatically taken from the application summary to the schedule and back. The calculation of your entries and carry forward of totals are usually performed automatically.
  3. When completing the refund application by hand, carry forward the totals from the schedule to the Application for Refund - Summary form.
  4. The Application for Refund - Summary form must be signed. Please mail the completed application to the Ministry of Finance.

DETAILED INSTRUCTIONS

Step 1 Completing the Upper Portion of the Application for Refund - Summary

  • When completing the application manually, provide your legal name and address along with your identification number. If preprinted, verify information and make the necessary corrections on the application.
  • When completing the application online, provide your legal name and address along with your identification number and this information will be carried forward throughout the application process.
  • Select the Fuel – clear fuel, biodiesel box for the Product type.
  • Below the Schedule # Name, select box 22 as the Schedule to be completed. When completing the application online you will be taken to the schedule automatically.

Step 2 Completing Schedule 22 – TEU

Are Biodiesel blend purchases included in this application? If so, indicate the percentage of Biodiesel in the blend and the number of litres of Biodiesel excluded in the calculation of refundable litres. Include with your application a separate sheet that shows the calculations.

Step 3 [A] Current Claim Calculation

Your refund must be based on the actual tax paid per litre, at the rate in effect at the time of purchase.

Line 1. Litres Purchased
Enter the litres of clear fuel purchased within the applicable tax period for which receipted invoices are attached to this application.

Line 2. Total Refundable Litres
Enter the amount of litres used for vehicle testing and/or clear fuel that was in the fuel tanks of vehicles exported out of Ontario. This figure should be net of imports.

Line 3. Ontario Tax Rate
Enter the applicable Ontario tax rate per litre. This is the tax rate in effect during the tax period dates identified in the column. Refer to tax rate table found on the Application for Refund – Page 1.

Line 4. Current Refund Claim Amount
Multiply Total Refundable Litres (line 2) by the Ontario Tax Rate (line 3). Include this Current Refund Claim Amount in Line C of the Application for Refund – Summary form.

Step 4 [B] Previous Claim Adjustment Calculation

Only use this section if you need to adjust your previous refund claim for which you have already received payment. Adjustments must be made within four years.

For example:

  • an invoice was not included or was incorrectly stated on your previous claim; and
  • clear fuel from that purchase was used in vehicle testing or was exported out of Ontario in the fuel tanks of vehicles.

Line 5. Litres Purchased
Enter the total litres of clear fuel purchased applicable to your previous refund claim, for which receipted invoices are attached to this application.

Line 6. Total Refundable Litres
Enter the amount of litres used for vehicle testing and/or clear fuel that was in the fuel tanks of vehicles exported out of Ontario. This figure should be net of imports.

Line 7. Ontario Tax Rate
Enter the applicable Ontario tax rate per litre. This is the tax rate in effect during the tax period dates identified in the column. Refer to tax rate table found on the Application for Refund – Page 1.

Line 8. Previous Refund Claim Adjustment Amount
Multiply Total Refundable Litres (line 6) by the Ontario Tax Rate (line 7). Carry forward this Previous Refund Claim Amount to Line D of the Application for Refund - Summary form.

Step 5 Completing the Lower Portion of the Application for Refund - Summary

  • When completing the application manually, carry forward the refund amount calculated on either
    • Line 4 – Current refund claim amount of the Application for Refund – Schedule to line C of the Application for Refund – Summary, or
    • Line 8 – Claim Adjustment of the Application for Refund – Schedule to line D of the Application for Refund – Summary.

When completing the application online the amount will be transferred automatically.

  • On line A Current refund claim or line B Adjustment to previous refund claim, enter the date of the first invoice and the date of the last invoice that are being submitted in support of the refund claim.
  • When completing the application online print 2 copies of the Application for Refund – Summary and Application for Refund – Schedule.
  • Complete the Certification section of the Application for Refund – Summary including an authorized signature and date.
  • Mail one completed Application for Refund – Summary and Schedule along with all supporting documentation to the ministry at the address shown at the top of the Application for Refund – Tax Exempt Usage (TEU)
  • Maintain one copy for your records.

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