Fuel Tax Refund (Off-road): Who Qualifies and What You Get
Learn if your business can claim a rebate on the federal excise tax paid for fuel used in non-highway equipment.
This scheme allows certain businesses to claim back the federal excise tax portion of the fuel they purchase for specific uses.
Who it's for
This program is specifically designed for businesses that use fuel to power equipment that is not intended for use on public highways. This includes machinery used for tasks like landscaping or mowing, where the equipment operates off-road rather than on the road network. If your business relies on specialized machinery for non-highway work, you may qualify for this relief.
What you get
When you qualify, you can receive a rebate on the federal excise tax portion of the fuel you have purchased. This is intended to offset the costs of running essential off-road machinery by returning a portion of the tax paid on that specific fuel.
What it costs you
While the refund provides financial relief, it requires significant administrative effort. You are responsible for keeping detailed logs that track your fuel consumption for all off-road equipment used. You must be able to prove how much fuel was used by your machinery to ensure your records are accurate and compliant.
The catch to know
The most important requirement is documentation. You must keep every single receipt for every fuel purchase you make. If you lose your receipts or fail to maintain your consumption logs, you will likely be unable to claim the fuel rebate.
How to apply
- Start tracking the exact amount of fuel used by your off-road machinery.
- Organise and save every receipt for all fuel purchases made for these machines.
- Maintain detailed, consistent logs of your fuel consumption to support your claims.
- Review the official requirements on the government portal to begin your claim: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4400/fuel-tax-refund-program.html