The short answerThe SARS diesel refund lets qualifying users, mainly farming, forestry and mining, claim back levies on diesel used in eligible activities. From 1 April 2026, onland claimants in these sectors can claim on 100% of eligible diesel. You must be VAT-registered and registered for the refund; since 18 September 2026 registration runs on a new SARS system, and existing users must re-register.
What the diesel refund is
Diesel carries the general fuel levy and the Road Accident Fund levy. For diesel used in certain primary-sector activities, which don't happen on public roads, Schedule 6 of the Customs and Excise Act allows part of these levies to be refunded. SARS calls it the Diesel Refund System (SARS).
From 1 April 2026 the levies on diesel are R3.93 a litre (general fuel levy) and R2.25 a litre (Road Accident Fund levy), so the records behind a claim are worth real money.
What changed in 2026
- 100% of eligible diesel. From 1 April 2026, primary-sector claimants operating on land can claim a refund on 100% of eligible diesel used in qualifying farming, forestry and mining activities. The change first showed on the VAT return submitted in May 2026 (SARS, 13 February 2026).
- A new registration system. From 18 September 2026, diesel refund registration moved to a dedicated Diesel Refund Registration System on eFiling, separate from VAT registration. Existing users must re-register; it is not automatic.
- Sellers register too. Diesel sellers are now asked to register on the new system so users can link their supplier relationships electronically.
Who qualifies
According to SARS, eligible users include:
| Sector | Examples |
|---|---|
| On land | Farming, forestry and mining (qualifying primary activities) |
| Offshore | Commercial fishing, coasting vessels, offshore mining, NSRI and research vessels |
| Harbour | Vessels operated by the port authority; in-port bunker barge operators |
| Rail | Locomotives used for rail freight |
| Electricity generation | Plants of more than 200 MW |
Foodstuff manufacturers have a separate scheme. Not every activity on a farm or mine qualifies: diesel used on public roads, for example, generally doesn't. Check the qualifying activities in Schedule 6 with your tax practitioner.
How to register
- Be registered for VAT.
- Register for the diesel refund on the Diesel Refund Registration System on eFiling (from 18 September 2026), or at a SARS branch.
- Link your diesel suppliers on the system, where SARS asks for it.
How to claim
Claims are currently submitted on the VAT201 return on eFiling. The refund is set off against any VAT payable for the period, or added to a VAT refund due. SARS is moving claims to a standalone system; watch for its announcements. Claims must be made within two years of the date the diesel was bought.
The records that make a claim stick
Most rejected claims fail on records, not eligibility. SARS requires you to keep all documents relating to diesel purchases, together with logbooks or other records, for five years. In practice that means:
- Purchase records: a tax invoice for every delivery showing the litres, grade, date and delivery address.
- Storage records: diesel received into each tank and issued from it, with dates and quantities.
- Usage logbooks: which machine used the diesel, for which qualifying activity, kept monthly.
- Reconciliation: purchases, storage and use must agree. Gaps invite questions.
Common mistakes
- Claiming for diesel used in non-qualifying activities, such as road transport.
- Diesel bought for cash without a proper tax invoice.
- Logbooks written up months later, from memory.
- Not re-registering on the new system after 18 September 2026.
How Fuel-It helps
We can't make your claim for you, but we make the first link in the chain clean. Every Fuel-It tax invoice shows the litres, grade, date and delivery address, and every load is metered and sealed, so your purchase records match what went into your tank. Fuel-It registration status as a diesel seller on the SARS Diesel Refund system
See farm diesel supply and fuel for mining, or fuel management for help with storage and usage records.
Sources
- SARS, Diesel Refund System (updated 22 September 2026)
- SARS, “Adjustment to diesel refund for onland users in farming, forestry and mining sectors”, 13 February 2026
- IOL, “Budget 2026: Fuel and RAF levy increases…”, 25 February 2026