Frequently Asked Questions about Refunds — Fuel Tax and Gasoline Tax
I paid more fuel/gasoline tax on my purchases than I collected on my sales because the same method of volume measurement was not used. Can I get a refund?
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 their 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 their supplier has collected tax on a volume corrected basis and no ambient temperature allowance has been provided by their 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.
If you are a wholesaler, please apply directly to the Ministry of Finance, Account Management and Collections Branch for a refund of tax. Refund claim forms may be obtained by calling the ministry and requesting form FT 370W for fuel, or GT 27OW for gasoline, Wholesaler's Ambient Allowance Application for Refund. Such refund applications may be filed as often as monthly.
If you are a retailer and did not receive an ambient temperature allowance from your supplier, please submit a refund claim directly to the Ministry of Finance, Account Management and Collections Branch (supporting documentation required). Refund claim forms may be obtained by calling the ministry and requesting form GT 275R for gasoline, or FT 375R for fuel, Retailer's Ambient Sales Application for Refund.
Refunds and the set‑off of ambient temperature allowances must be claimed within four years of the date the tax was paid.
I operate a motor vehicle that powers auxiliary equipment. Can I get a tax refund?
Yes, if the auxiliary equipment is powered directly by the vehicle or if the fuel or gasoline is coming from the same tank that powers the vehicle and you submit proper proof to support a power take‑off (PTO) claim.
For each vehicle for which a power take-off refund is claimed, proof includes:
- vehicle type including make, model and licence plate number
- type of auxiliary equipment used and the manufacturer's specifications for it.
You need to apply for a refund within four years of buying the gasoline or fuel on which you paid the tax.
Keep your receipts!
For gasoline or fuel used in power take‑off auxiliary equipment located on a licensed vehicle:
- actual recorded issues of gasoline or fuel to the licensed vehicles equipped with auxiliary equipment
- a monthly or quarterly record of distance travelled by power take‑off equipped licensed vehicles
- records approved by the Ministry of Finance for each specific power take‑off application to determine refundable quantities of gasoline or fuel using an approved allowance factor
- invoices for gasoline or clear fuel purchases which clearly show the amount of tax paid
Where diesel auxiliary equipment of a motor vehicle has its own separate fuel tank, coloured fuel should be used; no refund is available if clear fuel is used.
If gasoline is used in unlicensed vehicles or equipment for business, institutional or farming purposes:
- individual records of gasoline issues to each unlicensed unit
- invoices for gasoline purchases which clearly show the amount of tax paid
- a periodic gasoline inventory reconciliation, detailing opening inventory, purchases, closing inventory, taxable usage, and non‑taxable/refundable usage.
If unlicensed diesel vehicles or equipment is used for business, institutional or farming purposes, use tax‑exempt coloured fuel; no refund is available if clear fuel is used.
No refund is available and coloured fuel use is prohibited if the motor vehicle or equipment is used for recreation or pleasure.
Can I get a refund for tax paid on clear Ultra Low Sulphur Diesel (ULSD) fuel used to flush the truck dispensing system?
Some operators may need to flush their tank truck dispensing system to avoid higher sulphur content fuel coming in contact with ULSD during deliveries. A refund of the fuel tax paid on ULSD used in flushing may be available.
To claim this refund, complete an Application for Refund Loss of Product (PRL) / Overpayment of Tax and send it to the Ministry of Finance.
Can I get a refund for tax my business paid on gasoline used to power equipment that is not licenced for the road?
If you or your business buys gasoline for unlicensed equipment - such as equipment for farming, construction or manufacturing - you may get a refund of the gasoline tax you have paid. To qualify for the refund you must meet all of the following conditions:
- you used the gasoline in Ontario for business, industrial or institutional purposes
- you paid tax to Ontario on the gasoline used
- the equipment used is not licensed or required to be licensed under the Highway Traffic Act
- the equipment is not used for recreation or pleasure, and
- you keep all records of gasoline use to support your claim for a refund.
If you qualify, you need to apply for the refund within four years from the date you paid the tax by completing and submitting an Application for Refund Tax Exempt Usage (TEU).
Is there a refund or an allowance to retailers of gasoline on account of gasoline lost through evaporation, temperature changes or minor spillage?
Eligible gasoline retailers may claim a tax refund in the form of an allowance of 0.21 per cent of the tax paid on gasoline sold at retail. This refund allowance represents the tax paid by the retailer on gasoline lost through evaporation, temperature changes or minor spillage.
An eligible retailer must:
- have paid tax to their supplier on gasoline purchases
- not be a collector or an employee of a collector designated under the Act, and
- be licensed under the Technical Standards and Safety Act, 2000.
The refund allowance is calculated only on the quantity of gasoline actually sold at retail, but not on gasoline:
- purchased on consignment, unless the retailer is responsible for and pays the consignor for all consignment losses
- used in unlicensed equipment by the retailer, or
- sold at wholesale.
Inventory records and receipted invoices showing the quantity of gasoline and the date upon which gasoline tax was paid must be submitted with the refund application.