The province of British Columbia has issued two new bulletins regarding motor fuel tax refunds. Bulletin MFT 002 provides information to help purchasers understand the circumstances where they may be eligible for a refund of motor fuel tax paid, and how to claim a refund.
A purchaser may apply for a refund of motor fuel tax (MFT) in the following circumstances:
- pay MFT in error;
- overpay MFT, i.e., paid more MFT due to a calculation error;
- correctly pay MFT at the time of purchase, but you are a person who qualifies for a refund; or
- correctly pay MFT at the time of purchase, but you use the fuel for a specific exempt purpose.
There are different refund application forms available based on the type of motor fuel tax refund. Refunds are available to individuals with disabilities and for the use of diesel fuel in a private passenger vehicle. There are also several different types of refunds available for specific types of businesses or commercial purposes, including refunds for the logging and mining industries, the oil and gas industry, international cargo flights, IFTA commercial vehicles, farmers and for clear fuel used in a motor vehicle while the vehicle is stationary and operating certain equipment. The bulletin discusses the circumstances where these refunds are available, and references the applicable refund form.
Bulletin MFT-CT 007 provides information to fuel sellers who are not required to file regular returns under the Motor Fuel Tax Act or the Carbon Tax Act. These fuel sellers, who may be deputy collectors or retail dealers, may apply for a refund of the difference between the security paid on fuel, and the security or tax collected when that fuel is sold. Refund claims must be received by the ministry within four years of the date the security was paid.