Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Attention: XXXXX
XXXXX
Case Number: 115047
June 4, 2009
Subject:
EXCISE INTERPRETATION
FET on Kerosene
Dear Madame:
Thank you for your XXXXX of XXXXX concerning the application of subsection 2(1) of the Excise Tax Act on kerosene sold as heating oil.
All legislative references are to the Excise Tax Act and the regulations therein, unless otherwise specified.
We understand from the information provided that XXXXX purchases kerosene from XXXXX and they have an XXXXX for reselling kerosene in drums solely for lighting, heating or cooking purposes.
Interpretation Requested
You would like to know if XXXXX should charge Federal Excise Tax (FET) on the sale of kerosene when the customer is using or reselling the kerosene for heating.
Interpretation Given
Based on the information provided, any fuel oil, in this case kerosene, intended by the licensed manufacturer or producer for use as "heating oil" would be conditionally excluded from excise tax and permitted to be sold through the distribution chain on an excise tax-excluded basis.
At the time of purchase, and in order to substantiate their claim and receive the fuel oil exempt from excise tax, the purchaser should provide a written certificate of exemption. The certificate of exemption should read,
We hereby certify that this diesel fuel/fuel oil is for excise tax-excluded purposes provided for in subsection 2(1) of the Excise Tax Act and is for use by us exclusively as heating oil.
_____________________________
Signature of Purchaser
Pursuant to subsection 23(9.1) of the Excise Tax Act, if the fuel oil (kerosene) is subsequently sold or appropriated by XXXXX for purposes other than heating oil, the fuel would be considered diverted and subject to excise tax.
The foregoing comments represent our general views with respect to the subject matter of your request. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Goods and Services Tax Rulings, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the Excise Tax Act, regulations, or our interpretative policy could affect this interpretation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 954-6720.
Yours truly,
Sharon Kendall
Excise Taxes and Other Levies Unit
Excise Duties & Taxes Division Division
Excise and GST/HST Rulings Directorate
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