Author Lauren Frans

Introduction

The South African Revenue Service (“SARS”) has begun the phased roll-out of a new Diesel Refund Scheme.

The new Diesel Refund Scheme aims to reduce errors, strengthen compliance, and close long-standing loopholes that have made the system vulnerable to abuse. This represents the most significant update to the diesel refund framework since its introduction in 2001.

Overview of the planned changes to the Diesel Refund Scheme:

On 12 December 2025, SARS announced that it would modernise the Diesel Refund Scheme to address the various challenges faced by both qualifying users and sellers of diesel who are entitled to claim diesel refunds under  Schedule 6 of the Customs and Excise Act. SARS has issued a letter outlining the phases of the reform to all stakeholders, which is available at the following link: Click Here

As part of the modernisation of the Diesel Refund Scheme, SARS will introduce a dedicated platform specifically for the processing of diesel refunds. This platform will separate diesel refund processing and administration from the VAT system. Furthermore, sellers of diesel will be required to register on this dedicated platform to improve oversight and compliance across the diesel supply chain.

SARS held the first information session on the 27th of November 2025 and will release details of additional sessions in due course. An overview of the November 2025 session and more information regarding the upcoming implementation of the new Diesel Refund System is available at the following link: Click Here

A closed-group pilot is scheduled to launch in January 2026 to test the efficiency and functionality of the new Diesel Refund System. SARS aims to open the diesel refund profile and onboarding/registration system to all users from April 2026.

Taxpayers can direct any questions or queries to the following SARS Channels: