Diesel refund guide South Africa: eligibility, registration and how to claim
This diesel refund guide covers the essentials South African businesses need: what the scheme is, who qualifies, how to register, how to claim, what records SARS expects, and where claims typically fail. Whether you call it a diesel refund or a diesel rebate, this is the same SARS programme.
What is the diesel refund?
The diesel refund is a SARS-administered scheme under the Customs and Excise Act (rebate item 670.04). Qualifying VAT-registered businesses can claim back part of the general fuel levy and RAF levy on diesel used for eligible on-land activities. The scheme is also widely called the diesel rebate — the two terms mean the same thing.
SARS does not simply accept that diesel was used for qualifying work. You must register, maintain detailed logbooks, purchase from registered sellers, and be able to prove eligible use with contemporaneous records.
Who qualifies for the diesel refund?
Diesel refund eligibility depends on three things: your sector, your registration status, and how diesel is actually used on site.
Sectors that commonly qualify
- Mining and quarrying — open-pit and underground operations, processing plants
- Farming and agriculture — primary production activities on land
- Forestry — harvesting, planting and related on-land operations
- Other qualifying on-land primary production — as defined in the applicable legislation and SARS policies
General eligibility requirements
- VAT-registered business
- Registered on the SARS diesel refund system
- Diesel purchased from SARS-registered sellers
- Diesel used for eligible on-land activities (not road transport or other excluded uses)
- Compliant logbooks and source documents
Eligibility is activity-specific. Two businesses in the same sector can have different outcomes depending on how equipment is used and what records exist. If you are unsure, get diesel refund advice before claiming.
How to register for the diesel refund
Diesel refund registration is done through SARS eFiling. The process includes:
- Apply for registration on eFiling under the diesel refund scheme
- Register storage facilities — every tank or depot where diesel is stored
- Register eligible assets — equipment, vehicles and plant that consume diesel on qualifying activities
- Ensure sellers are registered — from 2026, diesel sellers must also register on the standalone platform
Your electronic registration profile must match what exists on site. Asset mismatches between the SARS profile and operational reality are a common audit trigger. See our guide on preparing for the 2026 platform.
How to claim a diesel refund
Once registered, the claim cycle typically works like this:
- Purchase diesel from a registered seller and retain invoices and delivery notes
- Record receipt in storage logbooks (opening stock, litres received, closing stock)
- Record dispensing in usage logbooks (date, litres, asset, activity)
- Reconcile monthly — purchases, stock movements and usage should align
- Submit the claim through the SARS diesel refund system for the claim period
From 2026, claims move to a standalone platform decoupled from VAT returns. See our migration checklist if you are transitioning from VAT-era processes.
What records does SARS expect?
SARS expects a complete paper trail from purchase to eligible use:
- Supplier invoices and delivery notes
- Storage logbooks (receipt, tank movements, stock balances)
- Usage logbooks (dispensing to registered assets)
- Asset registers matching the electronic profile
- Meter readings where dispensing is metered
- Monthly reconciliations (purchases ≈ usage + stock movement)
See our detailed guide on diesel refund logbook requirements in 2026.
Common mistakes on first diesel refund claims
- Claiming before registration is complete or assets are on the profile
- Logbooks completed after the fact, not at dispensing
- No reconciliation between purchases, stock and usage
- Mixing eligible and non-eligible use without split records
- Assuming eligible use without testing against source documents
- Site practices that differ from what head office submits to SARS
These gaps become acute under audit. See seven evidence gaps that weaken diesel refund positions and what triggers a diesel refund audit.
Diesel refund for mining and farming
Sector-specific rules matter. See our dedicated guides:
Diesel refund rates: fuel levy, RAF levy and Schedule 6
The refund covers a portion of the general fuel levy and RAF levy on qualifying diesel under Schedule 6 rebate item 670.04. From April 2026 qualifying users may claim 100% of eligible levies (up from 80%). See 100% diesel refund rate from April 2026 and confirm current rates on the official SARS website. The practical question is usually not the rate but whether your litres, diesel logbooks and diesel management records support the claim.
When to get diesel refund advice
Consider professional advice when:
- Preparing your first claim and unsure whether records are sufficient
- Received a SARS audit or verification letter
- Migrating to the 2026 standalone platform
- Logbooks or reconciliations have known gaps
- Equipment is shared across eligible and non-eligible activities
Meridian provides evidence-led diesel refund advisory for mining, industrial and fuel-intensive businesses. For official legislation and court cases, see our diesel refund resources.