Last updated 5 September 2026
Why both terms are used
In everyday use across mining, farming and forestry, "diesel rebate" is the common phrase. In SARS terminology, the relief claimed through the VAT return for qualifying diesel usage is a diesel refund under the Diesel Refund Scheme, provided for by rebate items in the relevant schedule to the Customs and Excise Act.
Both phrases usually point at the same thing. Problems start when a diesel refund is confused with simply claiming input VAT on a diesel invoice.
The practical difference
Input VAT on diesel is a VAT matter supported by a valid tax invoice. A diesel refund concerns specified fuel levies on eligible litres consumed in qualifying activities, and is supported by usage evidence rather than the purchase document alone.
- VAT: driven by the invoice and the VAT rules
- Diesel refund: driven by qualifying activity and usage records
- Different registration position and different evidence
- A valid invoice alone does not make a litre refundable
What this means for your records
If your process stops at collecting supplier invoices, you have a VAT process rather than a diesel refund process. The refund position needs the litres traced to equipment, operator and activity.
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.