Refunds and rebates

A refund is money given back to an individual or business if they:

  • paid too much in taxes
  • paid the wrong amount of taxes
  • sent more money to the minister (more than the tax collectable or payable)

A rebate is money given back on tax that was paid correctly but later returned to an individual or business under a rebate provision.

Apply for a fuel tax refund

You must complete and submit a refund application to the Ministry of Finance (ministry) within 4 years of paying the tax you want refunded. We will not allow any portion of a claim filed after this time.

Find the refund application forms and read the guides to help you fill them out.

Supporting documents

You must submit purchase invoices and other required documents with your application.

Note:

  • We will not return original invoices and other documents.
  • Copies must be clear and legible.
  • You must retain records for 7 years for audit purposes.

Invoices

An invoice covering the sale of fuel must include the:

  • name and address of the vendor and of the purchaser
  • selling price per litre of the fuel
  • amount of the tax charged
  • quantity of clear and/or coloured fuel purchased
  • date of sale
  • location where title to the fuel changed from the vendor to the purchaser of the fuel

Supporting invoices

You must show proof of payment of the tax charged on supporting invoices.

Other supporting documents

You may need to submit more supporting documents for specific refund claims.

Learn which documents you need in the application guides.

For refunds under $500

You are not required to send the supporting documentation with your application If your annual claim total is less than $500. However, you must keep them for seven years and provide them to the ministry if requested.

Direct bank deposit

Get your Ministry of Finance refund faster with direct deposit! It's easy and secure.

Download: Direct Deposit Request / Direct Deposit Authorization

Reference number

You will receive a permanent reference number when you claim a refund. Use this number when you contact the ministry about fuel tax refunds.

Important

You may face penalties if you misrepresent important details in your refund application or in any supporting documents. No refund will be issued if you misrepresent any details on an invoice used to support your claim.

Auxiliary equipment power take-off refund

Clear fuel used in Ontario to power auxiliary equipment located on a licensed vehicle qualifies for a tax refund. A unit powered from an engine which uses fuel from a vehicle's fuel tank is considered a Power Take-Off (PTO) function and qualifies for a PTO refund. Licensed vehicles that are be principally used for the transportation of passengers or for pleasure or recreational uses do not qualify for the refund.

In most of these cases, you cannot accurately measure the amount of fuel used. As a result, we base refund allowances on the equipment manufacturer's fuel consumption specifications as approved by the ministry. We have established refund allowances for many PTO operations.

Learn more about the PTO refund, including information for interjurisdictional carriers.

Application for Refund Auxiliary Power Take Off (PTO) Equipment

Bad debts and lost, destroyed, stolen or contaminated product

Applicants are eligible to apply for a refund of tax that has been remitted or paid on a product that has been:

  • sold and all or part of the sale price has not been paid and has become an uncollectible debt
  • lost, destroyed, stolen or contaminated and cannot be sold or used

You must apply for this refund within the four-year limitation period.

For information about this refund, including more details about eligibility and determining refund amounts, visit the Bad debts and lost, destroyed, stolen or contaminated product webpage.

Application for Refund Bad Debt (BDT)

Application for Refund Loss of Product (PRL) / Overpayment of Tax

Tax-Exempt Sales (TES)

Refunds for tax-exempt sales include sales to Fuel Acquisition Permit (FAP) holders/registered consumers or visiting Armed Forces.

Application for Tax Exempt Sales (TES) refund

Tax-Exempt Use (TEU)

Refunds for tax-exempt use include the ambient temperature refund, refunding the difference between tax paid on clear diesel and the rate of tax applicable to railways and sales to diplomats.

Application for Refund Tax Exempt Usage (TEU)

Ambient temperature / volume measurement refund (TEU)

Fuel and gasoline taxes are calculated using the same method of volume measurement (ambient or volume corrected) used to calculate the product selling price.

Collectors and wholesalers may provide an ambient temperature allowance to your customers to offset the tax differential where a customer buys product measured on a volume corrected basis but dispenses only on an ambient temperature basis. The ambient temperature allowance is:

  • 0.35% for gasoline tax
  • 0.25% for fuel tax

Retailers that dispense product on an ambient temperature only basis, may apply for a refund of tax differential where your supplier has collected tax on a volume corrected basis and no ambient temperature allowance has been provided by your supplier.

If you paid more tax than necessary because of a difference in volume measurement method — that is, if you did not receive the allowance — you can apply for a refund. Refund applications may be filed as often as monthly.

Refunds must be claimed within four years of the date the tax was paid.