Hello Community,
I am wondering if HST is to be charged by retailers for coloured diesel sold to farmers in ontario.
I know there is a tax rebate on the ontario tax. However, does the farm have the HST as a ITC?
Yes, HST is to be charged on dyed diesel fuel sold to farmers in Ontario and may be claimed back as an Input Tax Credit.
Coloured diesel isn’t just sold to farmers, it may be purchased and used by any person or business for “off road” use only … for instance excavating equipment, cranes, generators, and as home heating fuel.
Thank you. That helps. I just thought coloured diesel was for the farming equipment…
May you have a good Tax Season