Well worth claiming fuel rebates on farm activity
More correctly named Fuel Excise Duty Refund, claiming their petrol rebates can be an easy source of extra income for farmers.
Excise duty is a tax on petrol which is used to maintain our roading infrastructure. So businesses which use vehicles and equipment off- road are able to claim back the excise duty.
The really big items this applies to is motorbikes and quads. But fuel used in chainsaws, petrol generators and petrol tractors not used on the road also applies.
The catch is that the fuel must be used for commercial use but not for travelling on the road. So fuel used in pleasure boats or jet skiisdoesn’t qualify.
Petrol which is used in motorbikes and quads can amount to a large quantity during a year and with a little time spent on filling out the forms, the return can be quite worthwhile, especially for a large operator.
Fuel types which this rebate applies to include motor spirits, CNG and LPG; but does not include diesel as the tax on diesel is paid through road user charges.
Excise duty is currently about 50 cents per litre for motor spirits.
If 2000 litres was used over the period of a year, this would total over $1000 in refunds. Think how many nights out for dinner this could be.
Or how enjoyable it would be to spend it on a weekend away!
To apply for this refund, a form needs to be filled in quarterly ( March 31, June 30, September 30 and December 31) and sent to the NZ Transport Agency. If the cut-off dates for a quarter are missed, applications can still be sent within two years but a 10 per cent penalty will apply. Details of supplier, type of fuel, quantity and date of purchase must be included as well as the invoices showing proof of purchase.
The NZ Transport Agency website at nzta. govt. nz has the required forms MR70 and more information is contained on the Factsheet Excise Duty. Alternatively, printed copies of the form are available from your nearest NZTA regional office or by phoning the Transport Registry Centre.
Unfortunately, the main reason many farmers don’t apply for this refund is that it involves yet another form filling exercise!
If you prefer, your accountant would be able to help with this. Actually at CooperAitken we complete many of these forms on a regular basis for our clients. So if you use a large amount of petrol on your farm which doesn’t travel on the road, consider claiming the Excise Duty Refund.
If you run a large operation, you could be surprised how much it amounts to.
Really it is money for jam!
CLAIM: Fuel Excise Duty Refund.