Guide for Completing the Application for Refund Summary and Schedule 6 TES - Tax Exempt Sales – Export Out of Ontario (Excluding 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As announced in the 2013 Ontario Budget, the fuel tax exemption for biodiesel is repealed effective April 1, 2014, making biodiesel taxed in the same way as diesel fuel.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 Out of Ontario (Excluding Quebec) Clear Fuel Schedule 6 - 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, in bulk, out of Ontario to destinations other than Quebec and who have submitted all Returns for the refund period.

For clear fuel exports to Quebec please use Clear Fuel Schedule 4 - TES.

Supporting Documents

Please provide a copy of the details of exported product submitted with your tax return(s) covering this refund claim period.

When clear fuel is exported in bulk out of Ontario to the United States, by road, rail or marine vessel the following documents must be submitted in support of an application for refund of tax on clear fuel:

  1. Photocopy of the front and back of the U.S.
    Customs Proforma invoice, stamped by the U.S. Customs. The Customs stamp should show date, time of entry, entry number, manifest quantity and common commodity code.
  2. Where the product is exported via marine vessel, photocopy of the U.S. Customs document form
    1301; otherwise Form 7533, showing:
    • name and address of the importer
    • destination of the cargo (full address)
    • entry point
    • date of entry
    • name of transporter
    • quantity of clear fuel carried
    • product description, indicating type of the middle distillate. (Specifications as to the type of middle distillate must be in accordance with the standards of the Canadian General Standards Board.)
  3. Petroleum loading tickets showing:
    • location where the cargo was loaded
    • loading date of the clear fuel
    • quantity of clear fuel loaded
    • name and address of the purchaser
    • name of the transporter
  4. A copy of a straight bill of lading, correctly completed and showing, but not necessarily limited to, the following information:
    • name of the consignor
    • name and address of the consignee
    • originating point of shipment
    • destination of the shipment
    • date of the shipment
    • name and address of the transporter, and
    • description of the goods
  5. Receipted invoice(s) from your supplier, as proof of payment of Ontario tax on the clear fuel exported.
  6. Export sales invoice(s) issued by the applicant. These invoices must include a statement to the effect that Ontario fuel tax has not been charged on the sale.
  7. Any other evidence deemed necessary by the Ontario Minister of Finance to prove delivery of product to a location outside Ontario.

Supporting Documents outlined in 1, 2 and 5 must be submitted together with the refund application. All other supporting documents must be retained at an Ontario location and made available for audit examination upon request.

When clear fuel is exported in bulk out of Ontario to another Canadian province or territory, your refund application must be supported by:

  • all receipted invoices from the exporter's supplier, as proof of payment of Ontario tax on clear fuel exported
  • all export sales invoices issued by the exporter
  • if exported by road or rail, a copy of a properly completed straight bill of lading
  • if exported through a pipeline, a copy 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 by marine vessel, a copy of each survey report prepared when the clear fuel is loaded onto a vessel and then it is off-loaded at the delivery point
  • any other evidence deemed necessary by the Ontario Ministry of Finance, to prove delivery of product to a location outside Ontario
  • biodiesel fuel invoices must clearly indicate the percentage of biodiesel component in the purchase and of the biodiesel component in the sale.

Copies of invoices previously claimed must not be included in this claim unless you are claiming an adjustment for a previous 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 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 6 as the Schedule to be completed. When completing the application online you will be taken to the schedule automatically.

Step 2 Completing Schedule 6 - TES

Are biodiesel blend purchases included with this refund 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 worksheet that shows the calculations.

Provide a copy of each GT Schedule 6 – Details of Clear Fuel Exports that was submitted with the Return(s) covering this refund claim period.

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 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 on from each invoice and total all invoice volumes.

For blended biodiesel, claim only the portion of blend that is pure diesel in the product exported. 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. Total Litres Exported
Enter the total number of litres exported out of Ontario as per documentation attached. Provide a worksheet or machine tape of the total litres.

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

Line 4. Current Refund Claim Amount
Multiply Total Litres Exported (line 2) by Ontario Tax Rate (line 3). 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 to adjust your previous refund claim for which you have already received a 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 out of Ontario.

Line 5. 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 in the product exported. 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 6. Total Litres Exported
Enter the total number of litres exported out of Ontario as per documentation attached that were not included in your previous claim(s). Provide a worksheet or machine tape of the total litres.

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

Line 8. Previous Refund Claim Adjustment Amount
Multiply Total Litres Exported (line 6) by Ontario Tax Rate (line 7). Carry forward this Previous Refund Claim Adjustment 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 ($) of the Application for Refund – Schedule to line C of the Application for Refund – Summary, or
    • Line 8 – Previous refund claim adjustment amount ($) 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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