If you paid sales tax when you shouldn’t have, over paid sales tax, or are a business that is registered for sales tax and repaid the tax to a client, you could be eligible for a sales tax refund. You may be qualified for a refund if you over paid use tax as well.
This information will explain…
What form is used for the application for a refund
What else is needed to substantiate your refund claim
Where and when to mail your claim
Who is qualified to claim a refund
If you have a business that has been recorded for sales tax, instead of asking for a refund, you can use it as credit against your sales tax. This credit will help to reduce what is owed on your sales tax return. Look at Tax Bulletin Sales Tax Credits, form TB-ST-810 for more information on a credit claim.
A business that is recorded for sales tax will not instinctively get a refund even if you have filed an amendment proving you paid too much in sales tax. You also need to send an application for refund along with a carbon of your amendment and proof of the changes.
Include the following when filling out the application for a sales tax refund:
- Application completed and signed
- Form POA-1 (if required)
- Documents to affirm your claim for a refund
If someone other than the claimant signs the refund application, it must be accompanied with a completed Power of Attorney (Form POA-1). This will allow someone else other than the claimant such as an owner, business officer or partner to be privy to information about the refund. Even though this is approved, the refund will only be paid to the claimant.
If everything you send is not in order and completed properly, they will return paper work to you with a letter of explanation.
The documents that need to be included to authenticate your refund claim are as follows:
All contracts, receipts, invoices and other documents that confirm you actually paid the sales tax. You are able to submit photocopies.
Last, you need to provide clarification of the reason you are asking for a refund. You may have to provide additional documents depending on the situation.