News & Insights

Ontario Releases Power Take Off Refund Changes

Tax Development Jun 06, 2017

The Ontario Ministry of Finance has announced changes, effective July 1, 2017, to the power take off (PTO) refund calculation methodology and documentary requirements for tax paid on clear diesel fuel, gasoline or propane used to operate auxiliary equipment on licensed motor vehicles in Ontario.

The PTO refund will soon be calculated based on a pre-determined percentage allowance applied to the total fuel amount dispensed to a licensed motor vehicle carrying qualifying auxiliary equipment, rather than on separate equipment meter readings or allowances derived from equipment manufacturer specifications (methods which may still be used for refunds relating to PTO activities prior to July 1, 2017).  

Refund claims in relation to PTO activities on or after July 1, 2017 must be supported by monthly fuel issuance summaries by vehicle and include verifiable records, such as receipts, issue tickets, logs or reconciliation reports.

The bulletin is available at Ontario Tax Refund for Power Take Off Equipment.