Guide for Completing the Application for Refund Summary and Schedule 10 TES - Tax Exempt Sales – Export Out of Ontario

The information in this guide will help you complete the Tax Exempt Sales – Export Out of Ontario Cigars Schedule 10 - 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 Tobacco Tax Act and related regulations.

Who May Use This Form?

The refund is available to registered exporters, who export cigars out of Ontario for the purpose of resale.

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.

Submit individual purchase invoices receipted by the supplier.

The invoices must show:

• the name and address of the vendor and of the purchaser
• the selling price
• 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.

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

Documentary evidence acceptable to the Minister of Finance, that the cigars exported from Ontario were delivered to a person in another jurisdiction.

A certification by the jurisdiction into which the cigars were delivered for consumption, that tax was paid to that jurisdiction on the cigars exported from Ontario, or that the consumers of the cigars were not liable to pay tax on the cigars purchased by them.

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).

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 Tobacco Tax Act, R.S.O. 1990, c.T.10, and will be used for the purposes of the Tobacco 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 Tobacco – cigars, cigarettes box for the Product type.
• Below the Schedule # Name, select box 10 as the Schedule to be completed. When completing the application online you will be taken to the schedule automatically.

Completing Schedule 10 - TES

Step 2 [A] Current Claim Calculation

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

Line 1. Ontario Tobacco Tax Paid on Cigars Purchased
Enter the total Ontario Tobacco tax paid on cigars purchased during the export period for which receipted invoices are attached to this application. Include with your application a separate worksheet that lists all the invoices, record the grams of tobacco purchased from each invoice and total all invoice quantities.

Line 2. Tobacco Tax Paid on Cigars Sold/Consumed in Ontario
Enter the total Ontario Tobacco tax paid on cigars sold in Ontario as per documentation attached. This amount must be included in Line 1. Provide a worksheet or machine tape of the total grams.

Line 3. Tobacco Tax Paid on Cigars Exported out of Ontario
Enter the total Ontario Tobacco tax amount paid on cigars that have been exported out of Ontario, as per submitted invoices. This amount must be included in Line 1. Provide a worksheet or machine tape of the total grams.

Line 4. Current Refund Claim Amount
Enter the amount from Line 3 above. Carry forward this Current Refund Claim Amount to Line C of the Application for Refund – Summary form.

Step 3 [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 cigars purchased were exported out of Ontario.

Line 5. Ontario Tobacco Tax Paid on Cigars Purchased
Enter the total Ontario Tobacco tax paid on cigar purchased during the export period for which receipted invoices are attached to this application. Include with your application a separate worksheet that lists all the invoices, record the grams of tobacco purchased from each invoice and total all invoice quantities.

Line 6. Tobacco Tax Paid on Cigars Sold/Consumed in Ontario
Enter the total Ontario Tobacco tax paid on cigars sold in Ontario. This amount must be included in Line 5. Provide a worksheet or machine tape of the total grams.

Line 7. Tobacco Tax Paid on Cigars Exported out of Ontario
Enter the total Ontario Tobacco tax amount paid on cigars that have been exported out of Ontario, as per submitted invoices. This amount must be included in Line 5. Provide a worksheet or machine tape of the total grams.

Line 8. Previous Refund Claim Adjustment Calculation
Enter the amount from Line 7 above. Carry forward this Previous Refund Claim Adjustment Amount to Line D of the Application for Refund – Summary form.

Step 4 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.