SARS Diesel Refund Scheme
SARS Diesel Refund Claims Process
A step-by-step explanation of the SARS diesel refund claims process for South African operations — from confirming eligibility and registering, through record-keeping and reconciliation, to preparing and submitting the claim and handling verification.
The process
From registration to submission, step by step
Every step below builds the evidence trail that supports the next one. Skipping a step usually shows up later, during verification.
- 01
Confirm eligibility and qualifying activities
The Diesel Refund Scheme is activity-based. Before anything else, establish which parts of your operation may qualify and which clearly do not.
- Map each activity that consumes diesel — mining, farming, forestry and other recognised primary-production activities are the usual starting point.
- Identify diesel used for activities that would not qualify, such as certain road transport or private use, so they can be excluded from the outset.
- Note where contractors consume diesel on your operation and how that fuel is supplied, measured and recorded.
- Check whether the legal entity that buys the diesel is the same entity carrying on the qualifying activity.
- 02
Register with SARS
A diesel refund is claimed through a VAT-registered entity that is also registered for diesel refund purposes. Registration details must match how the business actually operates.
- Ensure the entity is registered for VAT and that its details with SARS are current.
- Apply to register for diesel refund purposes for the qualifying activity, using the applicable SARS registration process and forms.
- Confirm the tax periods that will apply to your diesel refund claims.
- Keep all registration correspondence, reference numbers and approvals on file — verification often starts here.
- 03
Set up records before you claim
The claim is only as strong as the records behind it. This is where most exposure is created or avoided.
- Keep supplier invoices and delivery notes for every litre purchased, showing dates, volumes and your entity details.
- Record storage: tank capacities, dip or meter readings, opening and closing stock, and transfers between tanks or sites.
- Record issues from tank to equipment, with date, volume and the machine or vehicle receiving the fuel.
- Keep logbooks or operational logs that show what work each machine performed, so usage can be tied to a qualifying activity.
- Document how contractor fuel is handled and how non-qualifying usage is separated.
- 04
Reconcile each period
A defensible claim reconciles purchases through storage to actual consumption by activity, period by period.
- Apply the basic reconciliation: opening stock + purchases − closing stock = consumption.
- Split consumption between qualifying and non-qualifying use using a documented, consistent method.
- Investigate and record variances, losses, spillage or contamination rather than absorbing them silently.
- Trace claimed litres back to source documents, not only to a spreadsheet total.
- 05
Calculate the refund
Once eligible litres are established, the refund is calculated using the rate applicable to the claim period.
- Confirm the eligible litres for the period from the reconciliation, not from estimates.
- Apply the refund rate applicable to that period, and note that rates and entitlement percentages change over time.
- Recalculate rather than carrying forward prior-period figures.
- Have someone other than the preparer review the calculation and the reconciliation behind it.
- 06
Submit the claim
Diesel refunds are claimed through the VAT return for the relevant tax period, supported by a complete working file.
- Declare the eligible litres and refund in the diesel refund fields of the VAT return for the correct period.
- Submit within the applicable time limits — late or missed periods may still be addressable, but the rules differ.
- Save the working file for the period: reconciliation, logbooks summary, calculations and supporting schedules.
- Record the submission reference and date alongside the working file.
- 07
Verification, audit and record retention
SARS may request supporting evidence. Readiness means producing a coherent trail without reconstructing it after the fact.
- Be able to trace any claimed litre from invoice, through storage, to dispensing and the activity it supported.
- Keep records for the required retention period in a retrievable format.
- Prepare a short written explanation of how your recording system works, so a reviewer can follow it.
- Respond to queries within the stated deadlines and keep all correspondence with the claim period file.
- Where gaps exist, document them and the corrective steps taken rather than leaving them unexplained.
Interactive checklist
Complete the readiness checklist here and book a site meeting
Rather than printing a form, tick off what you already have in place and choose a date that suits you. We review your answers before we arrive, so the meeting starts where it matters.
Questions
Common questions about claiming
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.