Under the fuel tax system, suppliers are required to collect an amount equal to the fuel tax on their sales of fuel to retail dealers. Under the Program, however, if you sell fuel at retail, you do not collect the fuel tax on their sales of fuel to Indians, councils and entities because of the tax exemption provided for under the Indian Act. As a result, we pay retail dealers that use the automated solution a weekly refund of the amount equal to the fuel tax they paid to their supplier but were unable to recover on sales of fuel to Indians, councils and entities.

Consequently, you can claim a refund of the amount equal to the fuel tax that you paid to your supplier, but did not recover from on the sale to an Indian or band council.

The manner in which you claim the refund differs based on whether you use the automated solution or paper forms.

Refund – automated system

If you use the automated system, you do not need to apply for the refund. We pay retail dealers that use the automated solution a weekly refund of the amount equal to the fuel tax they paid to their supplier but were unable to recover on sales of fuel to Indians, councils and entities.

Refund – paper forms

If you use paper forms, you must apply for the refund. You can apply for a refund of the amount equal to the fuel tax you paid to your supplier but were unable to recover on sales of fuel to Indians, councils and entities by completing a return for each service station you operate that is situated on a reserve or in an Indian settlement in Québec.