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SARS: Increase in Diesel Refund claims
- 28 April 2026
- Miscellaneous
- South African Accounting Academy
Summary:
A new Excise legislation, related to diesel refund claims increases the allowable diesel consumption percentage for diesel refund claims for on-land primary sector beneficiaries (e.g. in Farming, Forestry, and Mining Sectors) from 80% to 100%., came into effect on 1 April 2026.
Article:
This legislation falls under under rebate item 670.04 of Schedule 6 to the Customs and Excise Act, Act No. 91 of 1964.
As a result, the eligible litres calculation has been updated in the system and on the policy document (which is effective from 20 April 2026).
Although the legislation for 100% claims came into effect on 1 April 2026, the SARS digital infrastructure to manage these new, separated registrations is still being finalized.
SARS is expected to communicate new dates for the rollout of the dedicated platform, which will move diesel refunds away from the current VAT return system.
What you should do now (until the SARS online system is working effectively):
- Monitor for Updates: Check the SARS "What’s New" page for announcements on when the new registration system officially goes live.
- Existing Registrations: Continue following the existing, pre-April 2026 process for submitting claims until the new system is confirmed as live.
- Record Keeping: Keep detailed logs, as the new system will require enhanced documentation. It is advisable to keep a detailed logbook that contains records of all diesel purchases, storage and usage records and dates of vehicles filled with diesel as well as which qualifying activity was conducted per vehicle filled with diesel.
Click here to download the 6-page Excise Policy document:
Relevance to Auditors, Independent Reviewers & Accountants:
- The Customs and Excise Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, an accountant or tax practitioner, you need to be aware of the proposed changes to tax legislation that is relevant to you and your clients.
Relevance to Your clients:
- On-land primary sector beneficiaries (e.g. in Farming, Forestry, and Mining Sectors) should be aware of the latest changes to diesel refunds.
- It is important to be aware of the proposed changes to all tax legislation that is relevant.