Automated Diesel Rebate Reporting

Automated DIESEL REBATE SOLUTIONS:

LAS’s world class fuel accounting software OptiMIM, includes a Diesel Rebate module which automates the process of producing diesel usage logbooks for Eligible and Non-Eligible purchases to support your diesel rebate claim as required by Schedule 6 of the Customs and Excise Act, No 91 of 1964 section 75. The module is continuously updated with legislation changes in line with customer specific required changes. LAS staff are experienced in the Diesel Refund Legislation, Auditing and Software Development. These staff maintain and administer the OptiMIM Diesel Rebate Module.

VALUE ADD AREAS PROVIDED BY OptiMIM SOFTWARE:

The information obtained and accurately managed for the diesel refund module can be used for the following other applications:

Export to various financial systems for accurate cost centre reporting
Export to the client’s maintenance application to accurately determine equipment maintenance scheduling from the hour/km records
Monitor equipment’s consumption per hour/km
Manage contractor fuel caps(limits) with accurate fuel usage information
Fuel saving initiatives by comparing equipment consumption across similar/same equipment categories

SOUTH AFRICA DIESEL REFUND SYSTEM:

Schedule 6 of the Customs and Excise Act, No 91 of 1964 Section 75 provides the legislation applicable to the diesel refund system.
South African Revenue Services (SARS) administers the diesel refund system through the Value Added Tax (VAT) process.
SARS is also responsible for auditing the diesel refund claims in South Africa, and can audit your claims up to 5 years after it has been made.

WHAT IS THE CURRENT DIESEL REFUND LEVY?

There are various levies allocated to different sectors. One such sector is Mining, which we have used for the below example.

Diesel MINING:

The current diesel refund levy effective 1 August 2022 amounts to R3.66 per litre of 80% of Eligible Purchases. (Eligible Usage)
The diesel refund levy is calculated as follows:
Road Accident Fund Levy @ R2.18 + 40% of General Fuel Levy @ R3.70 = R1.48

CLAIMING DIESEL REFUNDS:

Diesel refund claims must be supported by logbooks which indicate a full audit trail of diesel fuel for which refunds are claimed, from purchase to use thereof.
In order to comply with the above mentioned requirements, two (2) types of logbooks are recommended by the legislation, alternatively, they can be combined into one document. These two logbooks are as follows:
Diesel storage facility (Tanks, bowsers, cassettes etc.) logbook
Diesel usage logbook.

RISK OF NON-COMPLIANCE:

SARS may audit your claims for up to 5 years after they have been submitted. If larger refunds were claimed than what was entitled the following penalties may apply:

REQUIREMENTS FOR A COMPLIANT DIESEL REFUND CLAIMS USAGE LOGBOOK PER EQUIPMENT:

The following data fields are required for a compliant logbook:

Opening and closing date.
Monthly opening litres of diesel in equipment.
Litres received from storage (Date, Storage detail and Quantity).
Equipment detail (Type, Identification number, Opening km/hours, Closing km/hours and Total km/hours).
Monthly closing litres of diesel in equipment.
Purpose – Activity performed – Date, Where, Specific eligible activity performed, Eligible litres, Non-eligible activity performed and Non-eligible litres
Particulars of Operator