Clearing the air over fuel rebate
With a new federal fuel surcharge, farmers in Ontario are eligible for an exemption on fuels used for farming practices, but the details have created some confusion among Ontario’s agriculture industry.
The Ontario Federation of Agriculture (OFA) is working to clarify the details around how farmers can qualify for the exemption.
Three areas of the new fuel surcharge have created confusion – what fuels are exempt from the new fee, how do farmers qualify for the exemption and where to go for more information?
To qualify for the exemption, farmers must complete a Fuel Charge Exemption Certificate for Farmers (Form L402) – a form available from the Canada Revenue Agency website. For more information on completing this form, OFA suggests that farmers talk to their fuel suppliers or call Service Canada.
OFA recommends all farmers keep diligent records of all fuel purchases, whether or not they are eligible for the surcharge exemption.
The federation suggests that farmers keep detailed mileage logs on all vehicles. These records will help you track any fuel used outside of farming activities – that is not eligible for the exemption. These records will also assist with farm tax filing and if the farm taxes are ever audited.
For details, visit ofa.on.ca/resources, contact your OFA Member Service Representative (MSR), visit the Canada Revenue Agency website or talk to your local fuel provider.