If you reside in Canada and an individual with a long time disability that prevents you from using public transportation in a safe manner, you might be qualified to request a partial reimbursement of the federal excise tax that you pay on your gas purchases. The Canadian government has started the Gasoline Tax Refund in Canada to lessen the burden of gasoline taxes for three types of people and organizations i will be sharing in this post.
After the date of purchase, the reimbursement may be claimed for a maximum of two years. Download Form XE8 from the CRA website in order to Excise Gasoline Tax Refund 2024 Apply. The Canada Excise Gasoline Tax Refund 2024 form has further information and instructions. You can also give the CRA’s Gasoline Tax Refund Unit a call at 1-877-432-5472 for additional information about this program. Here i am updating you with Who is Eligible for Gasoline Tax Refund in Canada, so check this page to know How to Claim Excise Gasoline Tax Refund.
Excise Gasoline Tax Refund- Meaning
A little-known benefit exists for individuals with physical limitations and registered charities: a refund of gasoline excise tax. The Excise Tax Act’s subsection 68.16(1) authorizes the Federal Excise Gasoline Tax Refund Program, which is the basis for this reimbursement. The CRA reimburses 1.5¢ for each liter of gasoline purchased; additionally, 1.5¢ is allowed for every 10 kilometers driven. “For the sole use of the purchaser and not for resale” is how the gasoline had to be purchased.
The Canada Excise Gasoline Tax Refund 2024 is available to any registered charity or Canadian amateur athletic association. Additionally, it can be accessed by a person who has been certified by a qualified medical practitioner to be suffering from a permanent impairment of locomotion to the point where using public transportation would be dangerous for that person.
Excise Gasoline Tax Refund- Highlights
|Refund Program||Excise Gasoline Tax Refund|
|Claim Form||Form XE8|
Eligibility for Excise Gasoline Tax Refund
The applicant must be into one of the two categories in order to become eligible for Excise Gasoline Tax Refund.
- Have to get approval to claim the Disability Tax Credit (DTC).
- A medical professional has certified mobility limitation.
How a person can Claim Excise Gasoline Tax Refund?
You can Claim Excise Gasoline Tax Refund by filling the Form XE8 on the official website. Those who meet the requirements may be eligible to get a refund for a portion of the fuel tax they paid, at the rate of CAD 0.015 per liter OR CAD 0.0015 per kilometer, depending on which option is more practical for them. The claimant has the last say over the procedure used. Using the liter rate technique will be more advantageous if the claimant drives a gas-guzzler.
In the event that you drive a compact, fuel-efficient three-cylinder car, the kilometer rate technique will yield a larger reimbursement. The kilometer rate approach is also meant for charitable organizations and amateur sports clubs whose staff members are required to drive their own cars for work and receive a kilometer-based reimbursement or allowance from the company.
When a person can Fill Form XE8?
There are restrictions on the frequency and timing of claim submissions. The claim may be filed for each six-month period ending on June 30 or December 31 if the refund is less than $200. The claim must to be submitted within a month of the six-month period ending. The claim may be made at any time throughout the year if the refund is $200 or more, but it should only be made once every month at most.
For a period of six years following the date of purchase, claimants must keep records such as gas receipts, invoices, vouchers, and confirmation-of-use statements. The supporting documents don’t have to be sent with the application; nonetheless, the claimant should retain them in case the CRA asks for them. The CRA needs sufficient information in papers that are readable in order to validate the claim. There will be no acceptance of estimates with missing supporting documents.
How to Apply for Excise Gasoline Tax Refund
- Using My Business Account, you can electronically submit your Excise Gasoline Tax Refund Application Form. It’s quick, easy, and safe. Visit canada.ca/my-cra-business-account to register.
- Are you a non-resident representative residing in the United States or a representative residing in Canada? Create an account with Represent a Client in order to utilize My Business Account services. Visit canada.ca/taxes-representatives to register.