Tax Refund for Power Takeoff Equipment

Power take-off equipment is qualifying auxiliary equipment added to a licensed motor vehicle that uses clear diesel fuel, gasoline or propane from the vehicle's fuel tank(s). Power take-off equipment includes:

  • cement mixers
  • aerial buckets, lifts and cranes
  • refrigeration units
  • power vacuums, pumps and blowers

If you paid tax on fuel used in Ontario to operate power take-off equipment, you may be able to get a refund.

Can I get a refund?

To get a power take-off tax refund, you have to:

  • use the power take-off equipment in Ontario
  • use fuel from the licensed vehicle's operating fuel tank to run the power take-off equipment
  • not use the power from the power take-off equipment to drive the motor vehicle
  • not use the motor vehicle in any way to transport passengers
  • not use the power take-off equipment for personal use, pleasure or recreation
  • have paid fuel tax to Ontario

You must apply for a refund within four years of paying the fuel tax.

International Fuel Tax Agreement refunds

If you are licensed under the International Fuel Tax Agreement and if you meet all the above conditions, you may get a power take-off tax refund. However, the amount of your refund will be calculated on the total distance travelled in Ontario.

Read on: Power Takeoff Tax Refunds for Interjurisdictional Carriers Licenced under the International Fuel Tax Agreement

Measuring fuel used in power take-off equipment

You can use either:

  • readings from separate meters or electronic control modules that measure the fuel supplied to the power take-off equipment, or
  • set allowances approved by the Ministry of Finance for different kinds of power take-off equipment, based on information from equipment manufacturers.

Please contact the Ministry of Finance at 1 866 ONT-TAXS (1 866 668-8297) to confirm if there is a ministry-approved allowance for your equipment.

How do I get the refund?

  1. Download the Application for Refund Auxiliary Power Take Off (PTO) Equipment [PDF - 689 KB].
  2. Read and follow the instructions carefully.
  3. Complete the application and mail it to the Ministry of Finance. Keep one copy for your records.

Send your application package to

Ministry of Finance
Motor Fuels and Tobacco Tax
33 King Street West
PO Box 625
Oshawa ON L1H 8E9

For refunds over $500

If the total of all refunds for a calendar year exceeds $500:

  • Include all supporting documents with your application.
  • Keep copies of all records for seven years for audit purposes.

For refunds under $500

If the total of all refunds for a calendar year does not exceed $500:

  • You do not need to send supporting documents with your application.
  • Keep your records for seven years in case the ministry audits you.

Records and receipts

You must keep accurate records of your fuel and gas purchases to support your refund claim, including purchase invoices, receipted by your supplier.

The invoices must show:

  • the name and address of the seller
  • the selling price per litre
  • the quantity of product sold
  • the date of the sale

Important: Keep all records to support your refund claim for seven years after you apply. If the ministry selects you for an audit, an auditor will verify your claim by checking your records.

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