Guide for Completing the Application for Refund Summary and Schedule 1 TEU - Allowance to Retailers

Published: March 2010
Content last reviewed: March 2010

The information in this guide will help you complete the Allowance to Retailers Gasoline Schedule 1 - 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 Gasoline Tax Act and related regulations.

Who May Use This Form?

The refund is available to retail vendors of gasoline in Ontario. The refund is an allowance to cover the tax on gasoline lost through evaporation, temperature changes and minor spillage.
In addition, to qualify for a refund for the period for which a refund is claimed, you:

  • paid Ontario gasoline tax to your supplier;
  • were licensed under the Technical Standards and Safety Act, 2000; and
  • were not a collector or an employee of a collector as designated under the Gasoline Tax Act.

If you are claiming a refund on Ambient Sales, please use Application for Refund Ambient Sales Gasoline Schedule 2 - TEU - Gasoline Tax Act. The refund:

  • is calculated on the quantity of gasoline you sold at retail;
  • is not payable for any gasoline used in unlicensed equipment by the retailer;
  • is not payable if the gasoline was on a consignment basis, unless the retailer was responsible for and paid the consignor
  • for all consignment losses; and
  • is not payable on gasoline sold at wholesale.

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

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

Include product inventory reconciliation summaries, corresponding to the application starting and ending dates, to support the litres sold within the claim period.

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 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 Gasoline Tax Act, R.S.O. 1990, c.G.5, and will be used for the purposes of the Gasoline 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 Gasoline, propane and aviation fuel box for the Product type.
  • Below the Schedule # Name, select box 1 as the Schedule to be completed. When completing the application online you will be taken to the schedule automatically.

Step 2 Completing Schedule 1 – TEU

  • Is gasoline-ethanol blend purchased before January 1, 2007 included in your application? If so, indicate the percentage of ethanol in the blend and the number of litres of ethanol excluded in the calculation of refundable litres. Include with your application a separate sheet that shows the calculations.
  • Indicate if you purchased gasoline at volume corrected measurement and sold it at ambient measurement. If yes, indicate if you received an ambient temperature allowance from your supplier(s).

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 gasoline purchased within the applicable tax period for which receipted invoices are attached to this application.

Line 2. Litres Sold at Retail
Enter the total number of litres sold at retail

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. Total Tax Paid on Litres Sold at Retail
Multiply Litres Sold at Retail (line 2) by Ontario Tax Rate (line 3) to obtain the dollar value of the tax paid on litres sold.

Line 5. Retailer Allowance
This is the current retailer allowance rate.

Line 6. Current Refund Claim Amount
Multiply Total Tax Paid on Litres Sold at Retail (line 4) by Retailer Allowance (line 5) and enter this amount. 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
  • gasoline from that purchase was lost through evaporation, temperature changes or minor spillage.

Line 7. Litres Purchased
Enter the total litres of gasoline purchased, applicable to your previous refund claim, for which receipted invoices are attached to this application.

Line 8. Litres Sold at Retail
Enter the total number of litres sold at retail.

Line 9. 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 10. Total Tax Paid on Litres Sold at Retail
Multiply Litres Sold at Retail (line 8) by Ontario Tax Rate (line 9) to obtain the dollar value of the tax paid on litres sold at retail.

Line 11. Retailer Allowance
Current allowance rate provided.

Line 12. Previous Refund Claim Adjustment Amount
Multiply Total Tax Paid on Litres Sold at Retail (line 10) by Retailer Allowance (line 11). Carry forward this Previous Refund Claim Adjustment Amount total 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 6 – Current refund claim amount of the Application for Refund – Schedule to line C of the Application for Refund – Summary, or
    • Line 12 – 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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