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  • Entitlement to fuel tax credits

    Fuel tax credits provide you with a credit for the fuel tax (excise or customs duty) included in the price of fuel you use in your business activities, including in:

    • machinery
    • plant
    • equipment
    • heavy vehicles.

    Generally the manufacturing of a fuel does not create an entitlement to fuel tax credits. However, an entitlement may arise for fuels used in fuel blends if either:

    • the blend cannot be used in an internal combustion engine (for example paint)
    • we determine the blend is no longer a fuel under the Fuel Tax Act.

    Recycled fuel or waste oil

    You may not have a fuel tax credit entitlement if the fuel you use is recycled fuel or waste oil.

    If you use recycled fuel, the recycler may already have an entitlement for the fuel tax credits if the recycled fuel has been blended. Contact your supplier to see if they have an entitlement to the fuel tax credit.

    Waste oil that is only filtered and dewatered is not considered to be manufactured or produced for the purposes of the Excise Acts. This means that recycled oil that has only been filtered and dewatered is not a taxable fuel for the purposes of the Fuel Tax Act and therefore there is no entitlement to fuel tax credits. Contact your supplier to confirm whether the recycled oil you use in your business is included in this category.

    See also:

      Last modified: 07 Feb 2017QC 19106