South African Diesel Refund Changes
SARS Compliance For Qualifying Industries
South Africa’s diesel refund system is entering a new phase of regulatory clarity and operational efficiency. South African Revenue Service (SARS) has initiated the modernisation of the diesel refund system, with the aim of strengthening compliance, reducing diesel refund fraud, and simplifying administration for qualifying sectors.
At LAS, we support customers across every stage of the diesel refund lifecycle. Below, we outline the key elements of the updated diesel refund system, what has changed, and what your organisation must do to prepare as SARS transitions to this modernised framework.
Why the Diesel Refund System Has Changed
The Diesel Refund System was introduced in 2001 to provide qualifying sectors with full or partial relief from the General Fuel Levy and the Road Accident Fund (RAF) Levy.
These sectors include mining, forestry, electricity generation, agriculture, and rail.
Currently, the diesel refund is administered through the VAT system, which has created
complexities for many taxpayers.
The South African Revenue Service (SARS) has now introduced a new diesel refund system, accompanied by legislative changes aimed at:
- Delinking diesel refunds from VAT administration
- Minimising refund fraud
- Simplifying documentation and logbook requirements
The Diesel Refund System Transformation (2015-2027)
- 2015-2019: System challenges were identified, followed by industry workshops and stakeholder consultations.
- 2020-2022: Legislative updates were developed and published.
- 2023: The transition of diesel refunds away from the VAT system commenced.
- 2025-2026: The new diesel refund system is being tested, with users gradually onboarded.
- 2026-2027: Full implementation of the new diesel refund submission process is expected.
LAS continues to monitor these developments closely to ensure customers remain compliant and prepared for upcoming system changes.
What the New System Introduces
- A pre-defined logbook format
- Clear and standardised administrative rules
- A new registration process incorporating risk-based checks
- An independent database for diesel refund users, no longer linked to the VAT system
- Improved alignment between qualifying industries and the criteria used to determine refund eligibility
These enhancements are expected to streamline processes, reduce audit risk, and provide more reliable refunds for compliant users.
New Industry Categories
Under the updated diesel refund system, qualifying industries are now classified into eight simplified categories: offshore shipping, harbour shipping, fishing, mining (on land), rail freight transport, electricity generation, and agriculture.
Each category within the diesel refund system is governed by its own set of rules, including specific diesel refund logbook and reporting requirements.
Find out more about LAS’s Automated Diesel Rebate Reporting.
What Businesses Must Do: New SARS Diesel Refund Registration
To register for the Diesel Refund system, customers must update their details on eFiling, add Diesel Refund to their tax types, and complete the diesel registration form. They will need to provide their latest contact details, physical and business addresses, banking details, and the locations where mining activities are taking place. All required supporting documents must be uploaded through the SARS online portal or physically submitted to a SARS branch. Once submitted, customers can track the status of their applications, whether pending, approved, or rejected, directly from their dashboard.
The approval timeframe for a Diesel Refund registration typically ranges from 2 to 6 weeks. The duration may vary based on several factors, including the completeness of the documents submitted, the outcome of SARS’s risk evaluation, the applicant’s industry classification, and any additional verification steps required.
LAS offers a full service that oversees the entire registration and compliance process from start to finish by ensuring accuracy, efficiency, and full alignment with SARS requirements. This is achieved through a completely automated diesel rebate logbook derived from the LAS fuel management system, and backed by internal expertise, ensuring customers tick all the boxes required for a compliant rebate submission.
Supporting Documents: What SARS Requires
When submitting a Diesel Refund application, customers may be asked to provide relevant supporting documents to verify their business information and diesel-related information. LAS is able to assist its customers in submitting the correct documents required to satisfy SARS requirements.
Claim Submissions (2026/2027)
The next major stage of the new system involves implementing the Diesel Refund Claim Submission system.
SARS is currently finalising the process:
- Business requirements specification (BRS).
- Integration with the SARS online query system (SOQS) and eFiling.
- The new claim submission system will be implemented step‐by‐step for all eight categories.
LAS will provide ongoing updates and support to guarantee a smooth transition for our customers.
How LAS Supports the Qualifying Industries
At LAS, we offer the following full diesel rebate services:
- Diesel refund eligibility assessments
- Complete SARS registration support
- Logbooks design and audit compliance support
- Claim preparation and submission (once SARS launches the new system)
- Audit support and dispute resolution service
- Provide direct customer support during every regulatory change
Our goal is simple: maximise your qualifying refund while ensuring full SARS
compliance.
LAS is here to ensure that you remain compliant, registered, and ready for the future of diesel refund processing in South Africa.
Reach out to LAS at sales@las.co.za.