Federal Excise Gasoline Tax Refund: What is & Who is Eligible For Excise Gasoline Tax Refund in Canada & How to Claim?

Federal Excise Gasoline Tax Refund: What is & Who is Eligible For Excise Gasoline Tax Refund in Canada & How to Claim?

In this comprehensive guide, we delve into the details of the Excise Gasoline Tax Refund in Canada. Our aim is to provide you with a thorough understanding of who is eligible for this refund, how to claim it, and crucial details surrounding the process. By the end of this article, you’ll have a clear roadmap to navigate the Excise Gasoline Tax Refund, ensuring you can make the most of this significant benefit.

Excise Gasoline Tax Refund Overview

  • Excise Gasoline Tax Refund
  • Administered by: Canadian Government
  • Country: Canada
  • Claim Form: Form XE8
  • Refund on: Paid federal excise tax

Eligible individuals in Canada can leverage the Excise Gasoline Tax Refund, which allows them to claim a refund on the federal excise tax paid on gasoline. This refund, facilitated through Form XE8, serves as a vital relief for those burdened by high excise taxes on gasoline.

Who is Eligible for Gasoline Tax Refund in Canada?

The Gasoline Tax Refund targets specific groups, namely:

  1. Registered Charities
  2. Registered Canadian Amateur Athletic Association
  3. Individuals with a Permanent Mobility Impairment

Claimants must fall into one of these categories and indicate their status accordingly on Form XE8. If falling under the first two categories, specific account numbers must be provided. For those in the third category, certification of a permanent mobility impairment that prohibits the safe use of public transportation is required.

Claim Excise Gasoline Tax Refund

How to Claim Excise Gasoline Tax Refund?

Claiming this substantial refund involves using the “Application for Refund of Federal Excise Tax.” This form can be downloaded from the official web portal of the Government of Canada. It’s important to note that the refund applies only to the excise tax paid on gasoline at a rate of 0.015 dollars per liter or 0.0015 dollars per kilometer.

Moreover, the refunded amount is non-transferable and should only be utilized by the claimants. While fuel purchased in a foreign country is ineligible for a refund, keeping supporting documents such as receipts and invoices is crucial, even though they aren’t initially required with Form XE8.

When to Claim a Gasoline Tax Refund?

The timing of submitting a claim depends on the claimed amount:

  • Claim Exceeds $200: Submit the form at any time during the year.
  • Claim is Less Than $200: Submit for each 6-month period ending June 30/December 31. It is advisable to consolidate claims for gasoline used in different vehicles into a single claim, assessing whether the total amount exceeds $200.

Excise Gasoline Tax Refund Form

The application form, Form XE8, comprises two pages: one for the main form and the other containing instructions for completion. Here’s an overview of the information required:

Excise Gasoline Tax Refund Form XE8
  1. Identification:
    • Name, address, city, province, and postal code.
  2. Account Information:
    • Account number, coverage period, and language of communication (French/English).
  3. Claimant Details:
    • Type of claimant.
  4. Refund Calculation:
    • Total amount claimed, calculated based on the applicable rate.
  5. Refund Option:
    • Choose between a cheque or direct deposit.
  6. Certification:
    • Sign, date, and provide a telephone number.
Excise Gasoline Tax Refund Form

Once completed, the form should be sent to the address specified on the top right side of the form, addressed to the Canada Revenue Agency.

In conclusion, understanding the intricacies of the Excise Gasoline Tax Refund and navigating the claiming process through Form XE8 can result in substantial benefits for eligible individuals in Canada. For more details and to download the claim form, visit Canada.ca.

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