The South African Revenue Service (SARS) has issued a notice to large onland diesel users, announcing a significant change to claim amounts.<\/p>\n\n\n\n
From 1 April 2026, these diesel claimants, being onland users in the farming, forestry, and mining sectors, will be able to claim back 100% of the eligible diesel used in qualifying activities, up from 80% before.<\/p>\n\n\n\n
This is to give effect to the announcement made by the Minister of Finance, Enoch Godongwana, in his 2025 Budget.<\/p>\n\n\n\n
In the 2025 Budget Speech, Godongwana announced that, to align with the policy intent of the Diesel Refund Scheme, the claim-back rate for onland diesel users would be adjusted.<\/p>\n\n\n\n
The Diesel Refund Scheme allows producers in certain sectors to claim a refund of all or part of the general fuel levies and the Road Accident Fund (RAF) levy.<\/p>\n\n\n\n
The standing regulations currently allow for diesel users in the farming, forestry, and mining sectors to claim refunds on 80% of eligible diesel purchases and usage.<\/p>\n\n\n\n
However, this will now be amended to allow these sectors to claim refunds on 100% of eligible diesel purchases and use.<\/p>\n\n\n\n
The 100% refund was submitted by Godongwana to provide some relief to affected industries in the wake of the fuel levy hike that took effect the same year. <\/p>\n\n\n\n
The change came at an estimated budget cost of R1 billion that would be given back in additional refunds.<\/p>\n\n\n\n
SARS said that it is currently working on upgrading its systems for the change, noting that the new rate, which is effectively applied from the April 2026 return, will reflect only from the calendar month when this VAT return must be submitted, i.e. May 2026.<\/p>\n\n\n\n
“Because the VAT returns are generally due by the 25th day or the last business day for eFiling, of the month following the end of the specific tax period, claimants will not be disadvantaged because of this system upgrade,” it said.<\/p>\n\n\n\n
The latest development follows other measures SARS put in place to help streamline the claims process.<\/p>\n\n\n\n
In December 2025, the revenue service launched a digital modernisation process for the Diesel Refund System.<\/p>\n\n\n\n
This provides a dedicated platform for diesel sellers and eligible users to register and submit diesel refund claims, on a standalone system decoupled from the VAT system.<\/p>\n\n\n\n
This was done to enable SARS to reduce fraud and improve efficiency by tightening oversight of claims.<\/p>\n\n\n\n
It also helps the service with better risk profiling and the development of a more modern, automated process.<\/p>\n\n\n\n
Outside of the change, however, the standard terms and conditions apply.<\/p>\n\n\n\n
For example, any diesel refund claim for the fuel levy and RAF levy must be submitted within two years of the date of purchase of the diesel.<\/p>\n\n\n\n
All relevant documentation relating to diesel purchases, including logbook entries and other records, must be retained for five years.<\/p>\n\n\n\n
These include entries which indicate the actual amounts of diesel purchased and used for eligible and non-eligible use during the tax period.<\/p>\n\n\n\n
“Any diesel refund amount which is found to have been incorrectly refunded will have to be paid back to SARS, together with any penalties and interest that are applicable,” the tax service said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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