Refunds for Motor Fuel Tax & Carbon Tax
If you've overpaid your taxes or paid tax in error (e.g. you qualify but didn't receive an exemption when you purchased the fuel), you may be eligible to receive a refund of the motor fuel tax or carbon tax you paid.
As a fuel seller, you may apply for motor fuel tax and/or carbon tax refunds for the difference between the security you pay on your fuel purchases and the security or tax you collect from your customers.
- Motor fuel and carbon tax refunds for exempt sales to status Indians or diplomats
- Motor fuel and carbon tax refunds for exempt sales to registered consumers or for exported fuel
- Motor fuel tax refunds for businesses authorized to colour or re-label fuel and sell at a lower tax rate
If you are registered as a collector and submit tax returns to us, you can claim a refund by deducting the refund amount from the amount of the security due on the return for the same reporting period.
- For a full explanation, refer to bulletin Fuel Sellers (MFT-CT 001) (PDF)
If you are a deputy collector or retail dealer, you can claim a refund by filling out the applicable refund application form.
- Get more information about claiming refunds and find applicable forms in bulletin Refunds for Deputy Collectors and Retail Dealers (MFT-CT 007) (PDF)
If you extend credit to a customer, you may be required to pay the tax due on the sale before you collect the tax or security from your customer. If the customer’s account later becomes uncollectable and is written off as a bad debt, you are eligible for a refund of the amount of tax or security that you paid to the ministry but did not collect from your customer.
- Learn more about applying for a bad-debt tax refund with the bulletin Bad Debts (CTB 001) (PDF)
In some situations, you need to pay the tax first and meet some conditions to qualify for a refund or partial refund. Examples include:
- Motor fuel tax and carbon tax refunds for jet fuel used in international flights, unless you have been issued a registered consumer certificate in which case you can receive a point of sale exemption
- Partial motor fuel tax refunds for clear fuel used off-highway by the logging, mining, and oil and gas industries
- Partial motor fuel tax refunds for fuel used in stationary engines
- Carbon tax refunds for fuel used for specific non-energy purposes, unless you have been appointed a registered consumer in which case you can claim a point of sale exemption
Each refund form will tell you what documentation you may need to include. You can then submit the completed form and your documentation by mail or courier to the address on the form.
The ministry cannot issue refunds of less than $10, or if the date you paid tax or security was more than four years ago.
- Get more information about claiming refunds and find applicable forms in the related bulletins Carbon Tax Refunds for Purchasers (CT 002) (PDF) and Motor Fuel Tax Refunds for Purchasers (MFT 002) (PDF).
Appealing a Disallowed or Reduced Refund Claim
You can appeal a denied or reduced refund claim by writing a letter to the Minister of Finance within 90 days of the date on the letter that notifies you of the denied or reduced refund.
- For more information on appeals and how to file, see the Appeals page.