SARS Increases Diesel Refund Percentage for Primary Sectors

Posted 28 April 2026 Written by Acts Online
Category Tax

Brought to you by SA Accounting Academy: The South African Revenue Service (SARS) has increased the allowable diesel consumption for refund claims from 80% to 100% for primary sector beneficiaries. This change, effective from 1 April 2026, applies to the farming, forestry, and mining sectors.

In terms of rebate item 670.04 of Schedule 6 to the Customs and Excise Act, No. 91 of 1964, the allowable diesel consumption percentage for on-land primary sector beneficiaries has been adjusted. This amendment allows for the full 100% of diesel consumption to be eligible for refund claims, up from the previous 80% limit.

SARS has updated the eligible litres calculation within its internal systems and issued a revised policy document, SE-DSL-02 — Manage Diesel Refund Calculation — External Policy, which became effective on 20 April 2026. The policy outlines the updated methodology for calculating claims under the new threshold.

System Migration and Registration

Although the 100% claim provision is legally effective, the digital infrastructure for managing separated registrations is still under development. SARS intends to move diesel refund processing away from the current Value-Added Tax (VAT) return system to a dedicated digital platform. New dates for the rollout of this platform and the associated registration requirements will be communicated by the Commissioner in due course.

Click here to download the Manage Diesel Refund Calculation External Policy.

What this means for you, your business, or your clients

  • For yourself: Review the updated SE-DSL-02 policy to understand the specific calculation changes and documentation requirements for the 100% rebate threshold.
  • For your business: Prepare for the decoupling of diesel refunds from VAT returns by auditing current claim processes and ensuring readiness for the new SARS dedicated registration platform.
  • For your clients: Notify clients in the farming, forestry, and mining sectors of the increased refund potential and the upcoming requirement to register on a separate SARS platform for diesel claims.

Originally published at https://accountingacademy.co.za/news/read/sars-increase-in-diesel-refund-claims

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