The most significant changes from the previous system to the new system can be summarised as follows (each referred to in its own addendum):
- A mandatory new registration process is required on eFiling to enable users to claim diesel refunds (ADDENDUM A);
- Changes in the composition and determination of the amount per litre to be claimed (ADDENDUM B);
- Details of all eligible assets, storage facilities and qualifying sellers to be maintained on the “Electronic Registration Profile” of the user (ADDENDUM C);
- Changes to documentary evidence with regards to logbooks, invoices and delivery notes when complying with the requirements of diesel audits (ADDENDUM D).
After completing the registration process described in addendum A indicated above, a letter of acknowledgement will be allocated to the “Correspondence Tab” on eFiling.
Initial reports from SARS indicated that the registration process on eFiling would go live in April 2026, with the submission of diesel claims starting on the new system from May 2026 (based on April’s usage). A recent circular from SARS did however indicate that delays in getting the system up and running are currently being experienced. SARS has since opened the platform for registration, without adding all the functionalities required to load the requirements as indicated in Addendum C. Diesel users are urged to register as soon as possible to reduce delays in diesel refund claims once the system becomes fully operational.
Other impacts and key take aways:
- All claims submitted digitally on the new system will be subject to automated checks and compared to information on the registration profile of the user.
- Diesel refund audits will now be handled on the new platform.
- Cash flow management will become more manageable since the VAT and diesel systems are no longer integrated with each other.
- The new system will also provide real-time updates with regards to the status of all diesel refund claims.
ADDENDUM A
Below is a clear summary of the Diesel Refund registration steps on eFiling:
| Step | Action | Details / Notes |
| 1 | Access Organisations | Click “Organisations” and then “Maintain SARS Registered Details” |
| 2 | Go to Tax Products | Navigate to “My Tax Products” |
| 3 | Select Diesel Refunds | Click on “Diesel Refunds” |
| 4 | Add Registration | Click “Add new product registration” |
| 5 | Capture Required Details | Enter contact details, banking details, and physical/postal address |
| 6 | Select Application Type | Choose Diesel Refund User or Diesel Seller |
| 7 | Authorised Person | Capture details of the Authorised Person |
| 8 | Activity Category | Select the relevant activity category and provide diesel usage details |
| 9 | Submit Application | Click “Done” and then “Submit” |
ADDNENDUM B
One of the key changes to the new Diesel Refund Scheme is the composition of the refund amount based on the percentages of the relevant Fuel Levy (FL) and Road Accident Fund Levy (RAF). Under the previous system, most industries were able to claim 80% of these levies as a diesel rebate. The new diesel refund system has changed the composition to the following, per litre of diesel used in qualifying activities:
| Qualifying industry | Refund of Fuel Levy | Refund of Road Accident Fund Levy |
| Agriculture | 32% of FL | 80% of RAF |
| Fishing | 100% of FL | 100% of RAF |
| Mining on land | 32% of FL | 80% of RAF |
| Offshore mining | 100% of FL | 100% of RAF |
| Offshore shipping | 100% of FL | 100% of RAF |
| Harbour shipping | 0% of FL | 100% of RAF |
| Rail freight transport | 0% of FL | 100% of RAF |
| Electricity generation | 50% of FL | 100% of RAF |
ADDENDUM C
Another major change announced as part of the new Diesel Refund Scheme requires the users of the scheme to always keep their electronic registration profile on eFiling up to date and register all the following on their profile:
Eligible assets:
- Every asset powered by eligible purchases must be registered on the registration profile in sufficient detail for the user to be able to claim litres used by this specific asset.
- In other words, every vehicle, asset, vessel etc. needs to be registered on the registration profile of the user.
- Sufficient details regarding these assets include the make, model, fuel tank capacity and physical address of the assets (where it is situated at a fixed geographical location).
Storage facilities:
- Each storage facility must be registered on the registration profile of the user.
- Identifying features of each storage facility, such as the fuel storage capacity, is also to be included on the registration profile of the user, as well as the physical address of the storage facility where it is situated at a fixed geographical location.
- Interestingly, diesel bowsers have now also been included in the definition of a storage facility.
Qualifying sellers:
- Sellers of fuel are also required to be listed on the registration profile of the user and may only include sellers who have registered with SARS as a “Diesel Seller” under the new Diesel Refund Scheme.
- Any diesel acquired from a seller not listed on the user’s registration profile will not be considered as a qualifying purchase.
ADDENDUM D
Another crucial aspect of the new Diesel Refund Scheme is that logbooks are required to be kept for each storage facility, as well as for the usage of diesel by eligible assets.
With regards to the storage logbooks for each storage facility, particulars regarding eligible purchases of diesel received, stored, dispensed, disposed of and lost for each month are to be kept.
The usage logbooks must include particulars of diesel dispensed from any storage facility for use, the manner of application of the diesel, the assets powered by the diesel and the purpose of each activity performed with the diesel for each month.
The minimum requirements of the logbooks for both are listed on SARS’ website.
It is important to note that these logbooks need to be maintained continually, as SARS has indicated that inspection visits at the premises as indicated during the registration process may be conducted and, if found that any documents kept with regards to diesel refund claims is not being done in terms of the requirements of the Scheme, that the entire claim for the period be disallowed.
In addition to the logbooks, the following documentary evidence must be kept for each month:
- Original invoices for all eligible purchases.
- Original delivery notes for all eligible purchases.
- Records of disposal of diesel.
- Records of loss of diesel.
The requirements with regards to the invoices and delivery notes are mostly similar to the previous diesel rebate system except for invoices not having to be referenced to a specific VAT registration number and delivery notes also having to include the VIN number of the vehicle that performs the delivery.
