Government of Ontario: Ministry of Revenue

Guide for Completing the Application for Refund Summary and Schedule 3 TEU - Ambient Sales

The information in this guide will help you complete the Ambient Sales Clear Fuel Schedule 3 - TEU [PDF - 275 KB]. The guide also provides information about supporting documents, records retention, time limit for applying for a refund, direct bank deposit, and will help you to determine whether you are eligible to claim a refund. The information in this guide is provided as a guideline only and does not replace the law found in the Fuel Tax Act and related regulations.

Who May Use This Form?

The refund is available to retailers in Ontario who purchased clear fuel at volume corrected measurement and sold it at ambient measurement and who did not receive an ambient temperature allowance from their suppliers.

You are eligible to apply if, for the period for which a refund is claimed, you:

You may claim ambient temperature allowance once per year. The claim must be for a period of at least 12 consecutive months, commencing with the day following the end of the most recent claim period.

In instances where the tax collectable by you exceeded tax paid to your supplier, you must pay the excess to the Ministry of Finance.

Supporting Documents

Include with your application, all relevant purchase invoices, receipted by your supplier, as evidence of the payment of the tax and the date of payment.

The invoices must show:

The date of invoice payment should be provided and confirmed with copies of cancelled cheques and/or a statement of account.

Include product inventory reconciliation summaries, corresponding to the application starting and ending dates, to support the litres sold within the claim period.

Copies of invoices previously claimed must not be included in this claim unless you are claiming an adjustment for a previous claim.

Claims under $500

If your annual claim total is less than $500, you are not required to send the supporting documentation to the Ministry of Finance (ministry) with your refund application. However, you must retain the supporting documentation noted in the above section, for a period of seven years and provide the information to the ministry upon request.

Change of Information (Preprinted Application Only)

When completing a preprinted form please make any required corrections by hand on the refund application before submitting.

Tax Rates

The Ontario tax rates are found on the tax rate table provided on the Application for Refund – Tax Exempt Usage (TEU).

When completing the Application for Refund online the Ontario tax rates are automatically provided on the schedules.

Identification Number

Provide your federal business number or your MFTT reference number as your Identification No. on the Application. When communicating with the ministry, include your identification number on all correspondence and forms.

Direct Bank Deposit

For your refund to be deposited directly into your bank account, please provide a cheque marked VOID showing your name and address and attach it to your refund application or mail it to the Ministry of Finance with a letter requesting direct deposit. Remember to quote your Identification Number (Business Number or MFTT Reference Number) on your letter.

If you wish to cancel direct deposit, please send a letter to the Ministry of Finance requesting a cancellation.

Records Retention and Time Limit

The refund application must be received, by the ministry, within four years from the date of your tax payment. All records, documents and receipts pertaining to your tax refund claim must be kept for seven years for audit purposes.

For further information regarding records retention, please refer to the Tax Information Bulletin entitled Retention/Destruction of Books and Records. Copies are available at ontario.ca/finance or by calling 1 866 ONT-TAXS (1 866 668-8297).

Freedom of Information

Personal information contained within the Application for Refund is collected under the authority of the Fuel Tax Act, R.S.O. 1990, c.F.35, and will be used for the purposes of the Fuel Tax Act. Questions about this information collection should be directed to:

Senior Manager, Account Management
Client Services Branch
Ministry of Finance
33 King Street West, PO Box 625
Oshawa ON  L1H 8H9

Mailing Address and Enquiries

Ministry of Finance
Motor Fuels and Tobacco Tax
33 King Street West, PO Box 625
Oshawa ON  L1H 8H9

Toll free 1 866 ONT-TAXS (1 866 668-8297)
Hours of Service Monday to Friday 8:30am to 5:00pm
Teletypewriter (TTY) 1 800 263-7776
Fax 905 433-5680
Website ontario.ca/finance

PLEASE NOTE

  1. An application for refund includes the Application for Refund - Summary form and an Application for Refund - Schedule.
  2. When completing the refund application online, you will be automatically taken from the application summary to the schedule and back. The calculation of your entries and carry forward of totals are usually performed automatically.
  3. When completing the refund application by hand, carry forward the totals from the schedule to the Application for Refund - Summary form.
  4. The Application for Refund - Summary form must be signed. Please mail the completed application to the Ministry of Finance.

DETAILED INSTRUCTIONS

Step 1 Completing the Upper Portion of the Application for Refund - Summary

Step 2 Completing Schedule 3 – TEU

Step 3 [A] Current Claim Calculation

Your refund must be based on the actual tax paid per litre at the rate in effect at the time of purchase and the actual tax collected per litre in effect at the time of sale.

Line 1. Opening Inventory
Enter the opening inventory.

Line 2. Litres Purchased at Volume Corrected Measurement
Enter the total number of litres of gasoline purchased within the applicable tax period for which receipted invoices are attached to this application.

Line 3. Closing Inventory
Enter the closing inventory.

Line 4. Available Gasoline/Clear Fuel
Add Opening Inventory (line 1) to Litres Purchased at Volume Corrected Measurement (line 2) and subtract Closing Inventory (line 3).

Line 5. Ontario Tax Rate
Enter the applicable Ontario tax rate per litre. This is the tax rate in effect during the tax period dates identified in the column. Refer to attached tax rate table found on the Application for Refund – Page 1.

Line 6. Tax Paid
Multiply Available Clear Fuel (line 4) by Tax Rate (line 5).

Line 7. Litres Sold at Ambient Measurement
Enter the total litres sold at ambient measurement per metered sales records.

Line 8. Ontario Tax Rate
Enter the applicable Ontario tax rate per litre. This is the tax rate in effect during the tax period dates identified in the column. Refer to tax rate table found on the Application for Refund – Page 1.

Line 9. Total Tax Collected
Multiply Litres Sold at Ambient Measurement (line 7) by Tax Rate (line 8) to determine the total tax collected.

Line 10. Current Refund Claim Amount
Subtract the Total Tax Collected (line 9) from Tax Paid (line 6). Carry forward this Current Refund Claim Amount to Line C of the Application for Refund - Summary form.

Step 4 [B] Previous Claim Adjustment Calculation

Only use this section if you need to adjust your previous refund application for which you have already received payment. Adjustments must be made within four years.

For example:

Line 11. Opening Inventory
Enter the opening inventory.

Line 12. Litres Purchased at Volume Corrected Measurement
Enter the total number of litres of clear fuel purchased applicable to your previous refund claim, for which receipted invoices are attached to this application.

Line 13. Closing Inventory
Enter the closing inventory.

Line 14. Available Gasoline/ Clear Fuel
Add Opening Inventory (line 11) to Litres Purchased at Volume Corrected Measurement (line 12) and subtract Closing Inventory (line 13).

Line 15. Ontario Tax Rate
Enter the applicable tax rate per litre. This is the tax rate in effect during the tax period dates identified in the column. Refer to attached tax rate table Application for Refund Summary – Page 1.

Line 16. Tax Paid
Multiply Available Clear Fuel (line 14) by Tax Rate (line 15).

Line 17. Litres Sold at Ambient Measurement
Enter the total litres sold at ambient measurement per metered sales records.

Line 18. Ontario Tax Rate
Enter the applicable tax rate per litre. This is the tax rate in effect during the tax period dates identified in the column. Refer to tax rate table found on the Application for Refund – Page 1.

Line 19. Total Tax Collected
Multiply Litres Sold at Ambient Measurement (line 17) by Tax Rate (line 18) to determine the total tax collected.

Line 20. Recalculated Claim Amount for Period
Subtract the Total Tax Collected (line19) from Tax Paid (line 16).

Line 21 Previously Approved Refund Amount
Enter the approved refund amount from your previous refund application

Line 22 Claim Adjustment
Subtract the Previously Approved Refund Amount (line 21) from the Recalculated Claim Amount for Period (line 20). Carry forward this Claim Adjustment to Line D of the Application for Refund - Summary form.

Step 5 Completing the Lower Portion of the Application for Refund - Summary

When completing the application online the amount will be transferred automatically.