When businesses overpay provincial tax, they can usually claim a refund. In Saskatchewan, taxpayers only have four years from the date of the overpayment to apply for a refund. Make sure your clients know about this deadline so they don’t forfeit any payments.
To apply for a refund for provincial sales tax, liquor consumption tax, or beverage container program payments, your clients should use the General Refund Application Form. This form requests basic contact information, the dates of the overpayments, and the total refund amount. Your clients must provide documents such as invoices to back up their claims. If you are submitting this form on behalf of your clients, you need to include a Business Consent Form with this application.
Note that if your clients need a refund for sales tax related to the prorated vehicle tax program, they need to contact Finance Saskatchewan directly over the phone.
There are four different application forms for fuel tax refunds and rebates:
- The Commercial Fuel Tax Refund Application
- The Application for Gasoline Competition Assistance for Fuel Retailers
- The Application for Gasoline Competition Assistance for Bulk Dealers
- Mineral Exploration Fuel Tax Rebate Application
The gasoline competition program is for Saskatchewan service stations located near the borders of Manitoba or Alberta, and the program pays a certain percentage of the difference between the Saskatchewan fuel tax and the fuel tax in those other provinces. The closer a company is to the border, the larger of a rebate it receives.
There is also an application for refunds of tobacco tax payments. Your clients may be able to claim a tax refund if tobacco was stolen from their place of business, but they must provide police reports for this claim. They can also apply for tax refunds for tobacco products destroyed by flood or fire or for expired tobacco that was returned to the manufacturer.
To help your clients keep their tax liability as low as possible, make sure you educate them about tax credits and refunds. If you believe they have overpaid a provincial or federal tax, help them through the refund process, which can be complicated for business owners to navigate on their own.