Guide for Completing the Application for Refund Summary and Schedule 4 TES - Tax Exempt Sales – Export to Quebec

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As announced in the 2013 Ontario Budget, the fuel tax exemption for biodiesel is repealed effective April 1, 2014, making biodiesel taxed in the same way as diesel fuel.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 Tax Exempt Sales – Export to Quebec Clear Fuel Schedule 4 - TES [PDF - 251 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 registered exporters who exported clear fuel to Quebec and who have submitted all Returns for the refund period.

The refund is available on the difference between the Ontario fuel tax paid on the clear fuel exported and Quebec fuel tax charged in the zone where the clear fuel was delivered in Quebec.

For clear fuel exported out of Ontario (to a location other than Quebec), please use Clear Fuel Schedule 6 – TES.

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.

Copies of invoices previously claimed must not be included in this claim unless you are claiming an adjustment for a previous claim.

  • Copies of properly completed straight bill of lading if using a motor vehicle or railway equipment.
  • Copies of the pipeline report showing the amount of clear fuel loaded into the pipeline and the location where the clear fuel left the pipeline if exported through a pipeline.
  • A copy of each survey report prepared when the clear fuel was loaded onto the vessel and when it was off-loaded at the delivery point if exported by a vessel.
  • All export sales invoices issued by the exporter.
  • Letter from Gouvernment du Québec/Ministère du Revenu/Direction Générale de la Mètropole confirming the amount of clear fuel imported to Quebec.
  • Any other evidence deemed necessary by the Ontario Minister of Finance to prove delivery of product to a location outside Ontario.

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 Sales (TES).

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

When completing the Application for Refund manually, use the tax rates found on the tax rate table provided.

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

Records Retention and Time Limit

The application must be received, by the Ministry of Finance, within four years from the date of your payment of the tax. 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, kerosene box for the Product type.
  • Below the Schedule # Name, select box 4 as the Schedule to be completed. When completing the application online you will be taken to the schedule automatically.

Step 2 Completing Schedule 4 - TES

Are Biodiesel blend purchases included in this calculation? 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 worksheet that shows the calculations.

Step 3 [A] Current Claim Calculation

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

Line 1. Litres Purchased
Enter the litres of clear fuel purchased by applicant within the applicable tax period for which receipted invoices are attached to this application. Include with your application a separate worksheet that lists all the invoices, record the volume of litres purchased from each invoice and total all invoice volumes.

For blended biodiesel, claim only the portion of blend that is pure diesel. For example: if 100 litres of refundable fuel was blended at an 80/20 ratio, also referred to as B20 (i.e. 80 litres of clear diesel and 20 litres of biodiesel), claim 80 litres for refund.

Line 2. Quebec Destination (Zone)
Enter the region within Quebec where the gasoline was exported to. Refer to Revenue Québec "Table of Fuel Tax Rates in Québec, by Region".

Line 3. Total Litres Delivered to Quebec
From the Litres Purchased in Line 1 enter the total litres delivered to Quebec as per documentation attached. Provide a worksheet or machine tape of the total litres.

Line 4. 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 the tax rate table found on the Application for Refund – Page 1.

Line 5. Quebec Tax Rate
Enter the applicable tax rate per litre for the region identified in effect during the tax refund period. Refer to Revenue Québec "Table of Fuel Tax Rates in Québec by Region".

Line 6. Net Tax Rate Applicable
Enter the net tax rate by subtracting Quebec Tax Rate (line 5) from Ontario Tax Rate (line 4).

Line 7. Current Refund Claim Amount
Multiply Total Litres Delivered to Quebec (line 3) by Net Tax Rate Applicable (line 6). Carry forward this Current Refund Claim Amount to 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
  • the clear fuel from that purchase was exported to Quebec.

Line 8. Litres Purchased
Enter the total litres of clear fuel purchased by applicant, applicable to your previous refund claim, for which receipted invoices are attached to this application. Include with your application a separate worksheet that lists the claim adjustment invoices that were not included in your previous claim(s), record the volume of litres purchased from each invoice and total all invoice volumes.

For blended biodiesel, claim only the portion of blend that is pure diesel. For example: if 100 litres of refundable fuel was blended at an 80/20 ratio, also referred to as B20 (i.e. 80 litres of clear diesel and 20 litres of biodiesel), claim 80 litres for refund.

Line 9. Quebec Destination (Zone)
Enter the region within Quebec where the gasoline was exported to. Refer to Revenue Québec "Table of Fuel Tax Rates in Québec, by Region".

Line 10. Total Litres Delivered to Quebec
From the Litres Purchased in Line 1 enter the total litres delivered to Quebec that were not included on your previous claim as per documentation attached. Provide a worksheet or machine tape of the total litres.

Line 11. Ontario Tax Rate
Enter the Ontario applicable tax rate per litre. This is the tax rate in effect during the tax period dates identified in the column. Refer to the tax rate table found on the Application for Refund – Page 1.

Line 12. Quebec Tax Rate
Enter the applicable tax rate per litre for the region identified in effect during the tax refund period. Refer to Revenue Québec "Table of Fuel Tax Rates in Québec by Region".

Line 13. Net Tax Rate Applicable
Enter the net tax rate by subtracting Quebec Tax Rate (line 12) from Ontario Tax Rate (line 11).

Line 14. Previous Refund Claim Adjustment Amount
Multiply Total Litres Delivered to Quebec (line 10) by Net Tax Rate Applicable (line
13). Carry forward this Refund 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 7 – Current refund claim amount ($) of the Application for Refund – Schedule to line C of the Application for Refund – Summary, or
    • Line 14 – Previous refund claim adjustment amount ($) 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 Sales (TES)
  • Maintain one copy for your records.

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