Everything needs to be in order by the time tax time rolls in. Skipping a step and ending up on the wrong side of an audit is not the situation you want to be in. After all, missing out on potential rebates also loses you the chance of putting extra money in your pocket.

Business managers often ask “what are tax fuel credits?” This article tries to make the confusing tax fuel credits understandable for everyone.

Question: Are tax fuel credits need to be claimed by all types of businesses?


Claiming tax fuel credits with all types of businesses is optional. However, all kinds of businesses are entitled to tax fuel credits if their operations use fuel. The exceptions are the fuel used for aircraft and light vehicles travelling on public roads.

Your business is likely to be eligible for tax fuel credits when your vehicles are:

  • Weighing more than 4.5 tons and use public roads for travelling
  • Any size vehicle that works, idles or travels off public roads
  • Involved in the operation of auxiliary equipment such as hydraulic machinery or refrigeration units

Claiming tax fuel credits should be seriously considered if the above criteria meet your type of business operations. Doing so recovers some operating costs for your business. Claiming means to work out the different activities of the business that use fuel.

Question: Aren’t businesses already aware of tax fuel credits?


Yes, businesses are aware of tax fuel credits. However, their claims always veer towards conservative claims for lack of knowledge about the full entitlement. Some lack the needed resources to properly claim the full extent of tax fuel credits.

Most businesses are unaware that a higher rate of tax fuel credit that can be claimed when their vehicles travel off public roads. Some businesses may be aware but quantifying the fuel usage is often inaccurate.

It should be stated that almost all businesses understate their claim because they often rely on complicated spreadsheets, or conservative estimates or historic sample data. Often, being worried about being audited is the reason for the understated tax fuel credit claim.

Question: What’s the best way for businesses to claim an accurate tax fuel credit?


The tax fuel credit claim process can be automated and streamlined when a business makes it a point to capture live data from all their assets and vehicles. Telling the amount of fuel claimed can be a paperless process if the business has high-definition GPS equipped with revolutionary off-road and dual-layer mapping technology. With the help of top-of-the-line GPS tracking, fuel consumption information will always be accurate.

Question: Are tax fuel credit claims applicable only for trucks in the transport and freight businesses?


No, it’s not. All types and kinds of businesses using fuel stated in the above criteria can claim tax fuel credit. The only exceptions are with light vehicles or aircraft using public roads.

The following types of industries can apply for tax fuel credits:

  • Forestry
  • Construction
  • Local government
  • Mining and gas
  • Agriculture


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