Fuel taxes - Ontario

International Fuel Tax Agreement (IFTA)

IFTA registration in Ontario is available to Ontario-based carriers that are plated in Ontario.

IFTA applies to a qualified vehicle operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property, and:

• Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 11,797 kilograms (26,000 pounds); or
• Having three or more axles regardless of weight; or
• Is used in combination, when the weight of such combination exceeds 11,797 kilograms (26,000 pounds) gross vehicle weight.

A qualified vehicle does not include a recreational vehicle.

Fuel tax rates

The Ontario provincial fuel tax rate is currently $.143 per litre for diesel fuel; $.147 per litre for unleaded gasoline or gasohol; and $.043 for propane. Also, as noted at the beginning of the Canadian section, the Canadian federal government adds on the 5% GST, plus an excise tax to each litre purchased. While Ontario does have both clear and coloured fuel, coloured fuel is restricted for use only in unlicensed vehicles.

Fuel tax refunds

Refunds are available for taxes paid on clear diesel fuel, gasoline, or propane used in power-take-off equipment (PTO). To qualify for the refund, all of the following must be met:

• The PTO equipment must be used in Ontario and fuel taxes must have been paid to Ontario;
• The fuel must have been used from the licensed vehicle’s operating fuel tank to run the PTO equipment;
• The power from the PTO equipment must not have been used to drive the motor vehicle;
• The vehicle must not have been used in any way to transport passengers; and
• The PTO must not have been used for personal use, pleasure, or recreation.

Starting July 1, 2017, PTO refunds are calculated by applying a pre‑determined percentage allowance. The Ministry of Finance allowances are established according to an activity type. For example, 40 percent for vacuum/hydro vac trucks over 600 hp, 30 percent for paper shredders or ready mix trucks, and so on. Contact the Ministry for a complete listing.

Carriers licensed under IFTA that meet the above conditions may also qualify for PTO tax refunds; however, the refund will be determined based on the total distance travelled in Ontario.

Refund applications must be made within four years from the date the tax was paid. For refund application information prior to July 1, 2017, contact the Ministry.

To claim the refund, submit the Application for Refund Auxiliary Power Take Off (PTO) Equipment form, available at tinyurl.com/PTOform2017 or http://tinyurl.com/PTOrefundform for PTO activity prior to July 1, 2017.

Any supporting documents used to claim the refund(s) must be maintained for seven years (for audit purposes).

Fuel trip permits

Refer to Ontario Temporary Trip Permits for more information.

Bulk fuel transport

A fuel transporter transporting bulk fuel, gasoline, aviation fuel, or propane in or out of Ontario, must obtain registration as an interjursidictional transporter of petroleum products (ITPP). ITPPs are required to file monthly returns indicating the transfers of fuel into and out of Ontario during the previous month (bulk fuel transporters must file by the 25 th of the month, and bulk gasoline, aviation fuel, and propane transporters must file by the 21 st of the month).

ITPPs must carry the registration in the vehicle (or a notarized copy) when transporting fuel.

Bulk transporters entering Ontario from outside of Canada must be registered as an ITPP or pay the tax at the border upon entering Ontario. If the ITPP from outside of Canada fails to present the registration certificate at the border, the ITPP will also need to pay the tax upon entering Ontario.

To obtain forms, contact the Ministry of Revenue at (905) 433-6394.