Apply for a fuel tax exemption permit

You can apply for a fuel tax exemption for permitted activities in the Yukon. With an exemption permit number, you can get point-of-sale tax exemptions. This applies to eligible fuels at any authorized agent in the Yukon.

There are two types of tax exemptions:

• fuel used for permitted activities; and
• fuel used for space heating.

The fuel tax exemption permit is an annual permit. Your permit will be active from April 1 (or application approval date) to March 31.

You must apply each year in order to keep your permit active.

Note: As of January 2024, the application period will only run from January 1 to March 15 of each year. After that date, if you have not applied for a fuel tax exemption permit you must use the refund program for that year. Find information on the refund program. 

Fuel used for permitted activities

Eligibility

If you buy fuel for the following off-road commercial activities, you can apply for a fuel tax exemption:

• farming;
• fishing;
• hunting or outfitting;
• logging;
• mining;
• sawmills;
• tourism; or
• trapping.

Fuel tax exemptions are also authorized for off-road use by:

• golf course operations; or
• stationary generators.

Before you apply

1. Make sure your activity is commercial.
   • You must intend to earn a profit.
   • The common indicator for commercial activity is a reported profit.
     • We’ll use Canada Revenue Agency (CRA) benchmarks and tests to confirm that your activity is commercial and will lead to profitability.
     • Find an example of a test here.
   • We may ask you to submit a business plan, other financial information, or both.
   • You can submit additional information if you feel it will help you meet a commercial activity test.
2. Complete an application form FOT 5A for each activity you undertake, application form FOT 5B for a stationary generator, or application form FOT 5C for golf course operations.
   Note: for mining activity, the generator is included in the list of equipment and there is no need to fill out application form FOT 5B.
3. Attach a copy of valid documentation each activity you undertake.
   • Farming: current property assessment or lease agreement.
   • Fishing: commercial fishing licence.
   • Logging: timber licence and cutting permit.
   • Mining: current mining claim status report. The claim expiry date should cover the current year or beyond. If the mining claim is not 100% owned by the applicant, attach a copy of the signed mining agreement
   • Outfitting: outfitting concession and annual outfitting operating certificate.
   • Sawmill: business licence.
   • Tourism: wilderness tourism licence.
   • Trapping: trapping licence.
   • Golf course: business licence.
   • Stationary generator: current property assessment. 
4. Attach a copy of the entity profile from Yukon corporate registry. The status must be “In compliance” or “active”.

Submit your application

In person: Inquiry and cash desk, 2071 Second Avenue, Whitehorse. We are open Monday through Friday from 8:30 a.m. to 4:30 p.m. Find our location on a map.
Email: yk.taxreturns@yukon.ca
Mail: Government of Yukon
Department of Finance (B-1)
Box 2703
Whitehorse, Yukon
Y1A 2C6