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The SARS Diesel Refund Scheme, Explained

An overview of the SARS Diesel Refund Scheme: what it is, how it differs from VAT on diesel, who may qualify, what records are expected and how claims are verified.

What the SARS Diesel Refund Scheme is

The Diesel Refund Scheme allows qualifying users in specified primary-production sectors to claim a refund of certain fuel levies on diesel consumed in qualifying activities. It is administered by SARS and operates under the applicable legislation and rules, which change from time to time.

How it differs from VAT on diesel

Claiming VAT on a diesel invoice is a separate matter from a diesel refund. A diesel refund concerns applicable fuel levies on eligible litres used in qualifying activities. The two are administered differently and are supported by different evidence.

Who may qualify

Eligibility is activity-based, not industry-label based. Mining, farming, forestry and certain other recognised categories are typical starting points, but the qualifying test relates to the activity performed and the applicable rules and registration position.

What is not eligible

Diesel used in activities outside the qualifying scope — including certain road transport, private use, and usage that cannot be reconciled to a qualifying activity — should not be treated as eligible. Unreconciled volume is not eligible volume.

Records typically expected

Supplier invoices, delivery notes, bulk storage records, dispensing or issue records, equipment and vehicle identification, activity or operational logs, and a reconciliation that links purchases through storage to consumption by activity.

How claims are verified

SARS may request supporting evidence. The practical test is whether claimed litres can be traced back through the records to the activity that consumed them. Where evidence is missing, the claimed position is exposed regardless of how the litres were calculated.

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.

Go deeper

Detailed guides on each part of the scheme and the records behind it.

Frequently asked questions

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.