Commercial fuel tax refund

Type
TAX CREDITS
Application Difficulty
MEDIUM
Time To Complete4 weeksProgram Budgetno cap
See If You Qualify

Highlights

This program is a great opportunity for your business to save money on fuel costs. By applying for a fuel tax refund, you can get back the taxes paid on fuel used for specific commercial activities such as farming, fishing, logging, mining, and more. This means more funds can be redirected towards growing your business.

Why Apply?

  • Significant Savings: Get a refund on fuel taxes for off-road commercial activities.
  • Flexible Use: Refunds apply to various sectors including tourism, sawmills, and stationary generators.
  • Extended Deadline: You have up to 6 years from the fuel purchase date to apply.

Benefits

  • Easy Qualification: If your business is commercial and aims for profitability, you likely qualify.
  • Simple Process: Submit the required documents and application form to get your refund.
  • Financial Relief: Use the refunded money to invest back into your business operations.

Applying for this program can provide substantial financial relief and help your business thrive.

Financing Details

Type of Financing: Fuel Tax Refund

Eligible Expenses:

  • Fuel used for permitted off-road commercial activities such as:
    • Farming
    • Fishing
    • Hunting or outfitting
    • Logging
    • Mining
    • Sawmills
    • Tourism
    • Trapping
    • Golf course operations
    • Stationary generators
  • Fuel used for space heating

Ineligible Expenses:

  • Fuel used for non-commercial activities
  • Fuel used for on-road activities

Application Requirements:

  • Submit application within 6 years of fuel purchase
  • Include supporting documents such as:
    • Receipts showing fuel type, litres, date of sale, location of sale, and Yukon fuel taxes paid
    • Description of the equipment that used the fuel
    • Litres used per equipment over the refund period
    • Valid documentation for the commercial activity undertaken

Fees:

  • No fees associated with the application process

Qualifications

  • Must be purchasing fuel for off-road commercial activities such as:
    • Farming
    • Fishing
    • Hunting or outfitting
    • Logging
    • Mining
    • Sawmills
    • Tourism
    • Trapping
  • Fuel tax refunds are also authorized for:
    • Golf course operations
    • Stationary generators
  • Must intend to earn a profit (except for golf courses and stationary generators).
  • Must meet Canada Revenue Agency (CRA) benchmarks and tests for commercial activity.
  • Must submit a business plan or other financial information if requested.
  • Must complete application form FOT 6A.
  • Must include supporting documents such as:
    • Receipt showing fuel type, litres, date of sale, location of sale, and Yukon fuel taxes paid.
    • Description of the type of equipment that used the fuel (include make, model, and serial number).
    • Litres used in each piece of equipment over the refund period.
    • Location where the fuel was used.
  • Must attach valid documentation for the activity undertaken:
    • Farming: current property assessment.
    • Fishing: commercial fishing licence.
    • Logging: timber licence and cutting permit.
    • Mining: current claim status report.
    • Outfitting: outfitting concession and annual outfitting operating certificate.
    • Sawmill: business licence.
    • Stationary generator: current property assessment.
    • Tourism: wilderness tourism licence.
    • Trapping: trapping licence.
    • Golf course: business licence.
  • Must attach a copy of the entity profile from the Yukon corporate registry with status “in compliance” or “active”.

  • Disqualifications:

    • Pre-authorization sales receipts will not be accepted.
    • If application and supporting documents are in different names without additional information.

Description

This program offers your business a chance to get a refund on fuel taxes. If you use gasoline, diesel, or aviation fuel for specific off-road commercial activities, you can get money back. Eligible activities include farming, fishing, hunting, logging, mining, sawmills, tourism, and trapping. You can also get a refund if you use fuel for space heating.

Here’s what you need to know:

  • Refund Amount: The refund is based on the amount of fuel you purchased and used for the eligible activities.
  • Usage: The fuel must be used for commercial purposes, and you need to provide proof of purchase and usage.
  • Deadline: You have up to 6 years from the date of purchase to apply for the refund.

This refund can help lower your operating costs, giving you more funds to invest back into your business. It’s a straightforward way to save money on essential expenses.

Program Steps

  1. Complete the Application Form:

    • Fill out the application form FOT 6A for fuel used in permitted activities.
    • For fuel used for space heating, complete the Application for refund form FOT 6 and check box 4(1) “Due to a lower rate of tax”.
  2. Prepare Documentation:

    • Fuel Receipts: A copy of the receipt showing fuel type, litres, date of sale, location of sale, and Yukon fuel taxes paid. Pre-authorization sales receipts will not be accepted.
    • Equipment Details: A description of the type of equipment that used the fuel, including make, model, and serial number.
    • Fuel Usage: The litres used in each piece of equipment over the refund period.
    • Usage Location: The location where you used the fuel.
    • Activity Documentation: Attach valid documentation for the activity you undertake:
      • Farming: Current property assessment.
      • Fishing: Commercial fishing licence.
      • Logging: Timber licence and cutting permit.
      • Mining: Current claim status report. Include the claim expiry date covering the current year or beyond. If the mining claim is not 100% owned by the applicant, attach a copy of the signed mining agreement.
      • Outfitting: Outfitting concession and annual outfitting operating certificate.
      • Sawmill: Business licence.
      • Stationary Generator: Current property assessment.
      • Tourism: Wilderness tourism licence.
      • Trapping: Trapping licence.
      • Golf Course: Business licence.
    • Entity Profile: Attach a copy of the entity profile from the Yukon corporate registry. The status must be “in compliance” or “active”.
  3. Submit the Application:

    • In Person: Submit your completed application and supporting documents at the Inquiry and cash desk, 2071 Second Avenue, Whitehorse. Open Monday through Friday from 8:30 a.m. to 4:30 p.m.
    • Email: Send your application and documents to [email protected].
    • Mail: Mail your application and documents to:
      • Government of Yukon
      • Department of Finance (B-1)
      • Box 2703
      • Whitehorse, Yukon
      • Y1A 2C6
  4. Contact for Assistance:

    • If you have questions, email [email protected] or phone 867-667-5345 or toll-free in the Yukon at 1-800-661-0408 and ask for Tax Administration.
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