Does timber haulage diesel qualify?

Road haulage is generally treated differently to in-field production activity. Each activity should be assessed against the applicable rules and supported by records.

Our harvesting contractor buys its own diesel — can we claim it?

Generally not, if the contractor purchases, owns and consumes the fuel. The refund follows ownership of the diesel and the qualifying activity, supported by the contract and the records. Wet and dry arrangements should be documented so the position matches what actually happens in the compartment.

How do we handle diesel used in remote compartments with no fixed tank?

Bowser and drum issues can be supported, but only if each issue records the machine, the compartment, the activity and the quantity. Without that, the litres are usually treated as unreconciled.

What is the difference between a diesel rebate and a diesel refund for forestry?

Most forestry operations say "diesel rebate" for what SARS administers as a diesel refund on eligible litres used in qualifying primary production. Claiming input VAT on a diesel invoice is a separate matter with separate evidence.

Forestry

Forestry Diesel Rebate and SARS Diesel Refund Support in South Africa

Reconciliation, classification and claim-preparation support for qualifying forestry production activities.

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Forestry operations are mobile, contractor-heavy and often remote, which makes fuel traceability the central compliance challenge.

Harvesting equipment

Machine-level fuel allocation using dispensing records and hour meters.

Forestry machinery

Registers covering owned and contracted machinery working in each compartment.

Bulk diesel storage

Depot and in-field storage reconciled from delivery through to issue.

Diesel allocation

Litres attributed to compartments, activities and machines rather than pooled.

Primary-production activities

Activity classification separating potentially qualifying production from haulage and support usage.

Contractors

Review of harvesting and haulage contractor fuel arrangements and supporting paperwork.

Machinery records and audit trails

A record set capable of reconstructing any claim period.

Claim preparation

Reconciled working papers and supporting schedules per period.

South African scenarios

Typical forestry situations we are asked to review

Illustrative situations drawn from common South African operating patterns. They are not client case studies, and no figures, outcomes or clients are represented here.

Contractor-run harvesting in KwaZulu-Natal

A plantation operation in the KZN midlands buys diesel in bulk at a central depot, while independent harvesting and extraction contractors draw from bowsers in the compartments. Invoices are complete, but issues are recorded per bowser rather than per machine or compartment. The typical remedy is a bowser issue sheet capturing machine, compartment, operator and hour-meter reading, so litres can be attributed to in-field production instead of pooled with haulage.

Remote Mpumalanga depot with no closing readings

A grower with compartments spread across Mpumalanga reconciles fuel only when the depot runs dry. Without month-end dip readings, purchased litres and consumed litres cannot be separated for a claim period. The usual fix is a monthly dip and delivery register per tank, so variances are isolated as unreconciled instead of being absorbed into the claim.

We publish client case studies only where a client has approved the detail. Until then, these illustrative scenarios describe patterns, not outcomes.

Frequently asked questions

Information provided on this website is general information only and does not constitute tax, legal or financial advice. Diesel refund eligibility is subject to applicable legislation, SARS requirements, qualifying activities and supporting documentation. Refund rates may change from time to time. No refund is guaranteed.

Start with a free diesel refund assessment

We review your diesel consumption, current claim position and records, then set out the indicative opportunity and what would be required to support it.

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