South Africa’s diesel refund scheme, administered by SARS through the VAT system, allows qualifying users to claim back part of the General Fuel Levy and Road Accident Fund levy on diesel used in specific primary production activities.
Who qualifies?
The scheme applies to diesel used in eligible activities, which broadly include on-land farming, forestry, mining, and certain offshore and rail uses. Users must be registered for VAT and for the diesel refund. The specific qualifying activities and the portion of diesel that is eligible are set out in the Customs and Excise Act and SARS guidance, and SARS interprets them strictly.
What SARS expects
- Purchase records: supplier invoices showing quantity, date and price.
- Storage records: receipts into and dispensing from storage tanks.
- Usage logbooks: showing which equipment used the diesel and for which eligible activity.
Claims that cannot be traced from purchase to eligible use are commonly reduced or disallowed on audit.
Common pitfalls
- Mixing eligible and non-eligible use without clear records.
- Incomplete supplier documentation.
- Claiming for activities that fall outside the definitions.
Working with your supplier
Accurate, consistent invoicing from your fuel supplier is the foundation of a defensible claim. When you discuss mining supply with a supplier, agree your documentation requirements at the outset.
This article is general information, not tax advice. Consult SARS guidance or a tax practitioner for your circumstances.
Published by African Energy Enterprises. This article is general information and does not constitute legal, tax or financial advice. Regulated prices and rules change; confirm current figures with the relevant authority.
